It seems like there's nothing but not so great news going around these days, but then again a lot of it is down to the media just fear-mongering again because it gets rankings. At any rate, there is something to give many people hope, particularly if they have retirement nervousness. Numerous reports indicated that 401(k) plans are beginning to make cash again, after years of stagnation.
Retirement anxiety all over
In the past few years, many people who have 401(k) policies were shocked to see them go from being nest eggs to rotten ones as the stock industry tanked. A large number of current and soon-to-be retirees were mortified and cast into uncertainty. According to the Huffington Post, numerous surveys of people in what is called "Generation Y," the people born after Generation X and missed out on wearing flannel, have indicated this demographic are somewhat pessimistic about retirement.
USA Today pointed out that a lot of people are starting to stress less about retirement as their 401(k) plans and accounts are starting to rebound and earn cash again. It is pretty exciting for many people.
Massive increases
Reports vary, but a variety of studies and releases from various businesses indicate healthy gains in the last few years. Lipper, according to USA Today, reports the average stock mutual fund has valued 11.4 percent over the year. Since 401(k) policies are basically a tax-protected mutual fund with some elements of a trust or other maturing asset, many will have gained that much or possibly more.
Lipper also found the average stock mutual fund has appreciated 124 percent since the market hit bottom in 2009. Aon Hewitt, a large handler of 401(k) accounts, recently found the typical 401(k) plan had $74,380, compared to $70,970 at the start of the year.
During the last three years, the average employer-sponsored retirement plan valued 25 percent, according to investment firm funds Advisor. The 401(k) plans valued 28 percent, according to Time magazine.
Various states saw different increases too. The red states saw a 28 percent increase while blue states only saw 25 percent. People in Arkansas only saw a 1 percent increase while those in Mississippi saw an 80 percent increase.
Normal contributors enjoyed biggest gains
The one thing that is most important is that those who contributed the most cash saw the biggest gains in their 401(k) policies, according to USA Today and Time.
Just like a snowball, retirement accounts can make more money and accumulate more with more cash added to it. A little more money should be contributed to the account monthly so that it can make more cash every month.
Retirement anxiety all over
In the past few years, many people who have 401(k) policies were shocked to see them go from being nest eggs to rotten ones as the stock industry tanked. A large number of current and soon-to-be retirees were mortified and cast into uncertainty. According to the Huffington Post, numerous surveys of people in what is called "Generation Y," the people born after Generation X and missed out on wearing flannel, have indicated this demographic are somewhat pessimistic about retirement.
USA Today pointed out that a lot of people are starting to stress less about retirement as their 401(k) plans and accounts are starting to rebound and earn cash again. It is pretty exciting for many people.
Massive increases
Reports vary, but a variety of studies and releases from various businesses indicate healthy gains in the last few years. Lipper, according to USA Today, reports the average stock mutual fund has valued 11.4 percent over the year. Since 401(k) policies are basically a tax-protected mutual fund with some elements of a trust or other maturing asset, many will have gained that much or possibly more.
Lipper also found the average stock mutual fund has appreciated 124 percent since the market hit bottom in 2009. Aon Hewitt, a large handler of 401(k) accounts, recently found the typical 401(k) plan had $74,380, compared to $70,970 at the start of the year.
During the last three years, the average employer-sponsored retirement plan valued 25 percent, according to investment firm funds Advisor. The 401(k) plans valued 28 percent, according to Time magazine.
Various states saw different increases too. The red states saw a 28 percent increase while blue states only saw 25 percent. People in Arkansas only saw a 1 percent increase while those in Mississippi saw an 80 percent increase.
Normal contributors enjoyed biggest gains
The one thing that is most important is that those who contributed the most cash saw the biggest gains in their 401(k) policies, according to USA Today and Time.
Just like a snowball, retirement accounts can make more money and accumulate more with more cash added to it. A little more money should be contributed to the account monthly so that it can make more cash every month.
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