After years of stagnation, 401(k) plans are beginning to earn money again, which is really good news for a lot of people. Those looking down the barrel of retirement and those just starting to save for it are sure to be happy.
Keep away from anxiety
In the past few years, a number of people who have 401(k) plans 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, a number of surveys of individuals 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.
However, numerous surveys, studies and information released to the press recently might curb a bit of that retirement anxiety, according to USA Today. A good number of 401(k) plans or rather 401(k) accounts are starting to earn again.
A 25 percent increase
A number of people have gained at least 11.4 percent or more in their 401(k) plans since they are essentially tax-protected mutual funds. The typical stock mutual fund increased 11.4 percent in the last year, according to Lipper reports. There are a lot of different numbers being reported, but they are all positive, according to USA Today.
Lipper also found the typical stock mutual fund has appreciated 124 percent since the industry 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.
According to Time magazine, investment firm Funds Advisor found the median employer-sponsored retirement plan had appreciated by 25 percent in the past three years. Specifically, 401(k) policies appreciated an average 28 percent.
The increase varied by state; Mississippians loved an 80 percent increase while people in Arkansas had to do with a paltry 1 percent. Interestingly, "red" states saw an average 28 percent increase compared to 25 percent for blue states.
Most gains
If there's a common thread through some of these, both USA Today and Time both report that the largest gains were universally realized by people who continually contribute to their 401(k) plans.
Just like a snowball, retirement accounts can make more cash and accumulate more with more cash added to it. A little more cash should be contributed to the account monthly so that it can make more cash each month.
Keep away from anxiety
In the past few years, a number of people who have 401(k) plans 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, a number of surveys of individuals 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.
However, numerous surveys, studies and information released to the press recently might curb a bit of that retirement anxiety, according to USA Today. A good number of 401(k) plans or rather 401(k) accounts are starting to earn again.
A 25 percent increase
A number of people have gained at least 11.4 percent or more in their 401(k) plans since they are essentially tax-protected mutual funds. The typical stock mutual fund increased 11.4 percent in the last year, according to Lipper reports. There are a lot of different numbers being reported, but they are all positive, according to USA Today.
Lipper also found the typical stock mutual fund has appreciated 124 percent since the industry 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.
According to Time magazine, investment firm Funds Advisor found the median employer-sponsored retirement plan had appreciated by 25 percent in the past three years. Specifically, 401(k) policies appreciated an average 28 percent.
The increase varied by state; Mississippians loved an 80 percent increase while people in Arkansas had to do with a paltry 1 percent. Interestingly, "red" states saw an average 28 percent increase compared to 25 percent for blue states.
Most gains
If there's a common thread through some of these, both USA Today and Time both report that the largest gains were universally realized by people who continually contribute to their 401(k) plans.
Just like a snowball, retirement accounts can make more cash and accumulate more with more cash added to it. A little more cash should be contributed to the account monthly so that it can make more cash each month.
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