With all the bad news going around nowadays, people who have 401(k) policies have some good news. Earnings on 401(k) plans have been sneaking up over the past year according to press releases from numerous outlets.
Retirement anxiety all over
When the economy tanked, so did most 401(k) accounts invested mostly in stock. That meant a lot of retirees and soon-to-be retirees were really struggling for a few years. Now, "Generation Y" is really negative about the potential for retirement.
USA Today pointed out that many people are beginning to stress less about retirement as their 401(k) plans and accounts are beginning to rebound and earn cash again. It is pretty exciting for a number of people.
Large increases
USA Today reports that several numbers have been reported, but they all show positive gains in the plans. 401(k) policies are tax-protected mutual funds, more or less, so when Lipper reported an 11.4 percent increase in the typical stock mutual fund, it basically meant that retirement accounts are increasing by at least that much.
The average 401(k) plan had $74,380 in it, according to Aon Hewitt. That is good news since it was $70,970 at the beginning of the year. The typical stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.
According to Time magazine, investment firm Funds Advisor found the median employer-sponsored retirement plan had valued by 25 percent in the past three years. Specifically, 401(k) policies valued an average 28 percent.
Different 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.
Regular contributors loved biggest gains
People who contributed to their 401(k) policies regularly saw the most gains, which both Time and USA Today reported to be a common thing.
If you can put just a little more money into your account every month, it will be able to make a lot more cash in the end. It is a "snowball" impact where the snowball gets bigger as it rolls down the bill and gets more snow. The 401(k) will get bigger without putting additional cash in, but it can gain a lot more if you put additional cash in regularly.
Retirement anxiety all over
When the economy tanked, so did most 401(k) accounts invested mostly in stock. That meant a lot of retirees and soon-to-be retirees were really struggling for a few years. Now, "Generation Y" is really negative about the potential for retirement.
USA Today pointed out that many people are beginning to stress less about retirement as their 401(k) plans and accounts are beginning to rebound and earn cash again. It is pretty exciting for a number of people.
Large increases
USA Today reports that several numbers have been reported, but they all show positive gains in the plans. 401(k) policies are tax-protected mutual funds, more or less, so when Lipper reported an 11.4 percent increase in the typical stock mutual fund, it basically meant that retirement accounts are increasing by at least that much.
The average 401(k) plan had $74,380 in it, according to Aon Hewitt. That is good news since it was $70,970 at the beginning of the year. The typical stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.
According to Time magazine, investment firm Funds Advisor found the median employer-sponsored retirement plan had valued by 25 percent in the past three years. Specifically, 401(k) policies valued an average 28 percent.
Different 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.
Regular contributors loved biggest gains
People who contributed to their 401(k) policies regularly saw the most gains, which both Time and USA Today reported to be a common thing.
If you can put just a little more money into your account every month, it will be able to make a lot more cash in the end. It is a "snowball" impact where the snowball gets bigger as it rolls down the bill and gets more snow. The 401(k) will get bigger without putting additional cash in, but it can gain a lot more if you put additional cash in regularly.
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