More Funds Accumulating In 401(K) Plans
It seems like there's nothing but bad news going around nowadays, but then again a ton of it is down to the press just fear-mongering again because it gets rankings. Anyway, there is something to give many people hope, especially if they have retirement anxiety. Numerous reports revealed that 401(k) policies are starting to make money again, after years of stagnation.
Stay away from anxiety
When the economy tanked, so did most 401(k) accounts invested mostly in stock. That meant a ton of retirees and soon-to-be retirees were really struggling for a few years. Now, "Generation Y" is really negative about the possibility of retirement.
However, a number of 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) policies or rather 401(k) accounts are beginning to earn again.
Up 25 percent
Reports vary, but a variety of studies and releases from numerous businesses indicate healthy gains in the last few years. Lipper, according to USA Today, reports the average stock mutual fund has appreciated 11.4 percent over the year. Since 401(k) plans are essentially a tax-protected mutual fund with some elements of a trust or other maturing asset, many will have gained that much or possibly more.
The typical 401(k) plan had $74,380 in it, according to Aon Hewitt. That is great news since it was $70,970 at the beginning of the year. The average 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 appreciated by 25 percent in the past three years. Specifically, 401(k) plans appreciated an average 28 percent.
There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it obviously varied a lot by states. Blue states saw 25 percent increases while red states saw 28 percent increases.
Seeing biggest gains
The one thing that is most essential is that those who contributed the most money saw the biggest gains in their 401(k) policies, according to USA Today and Time.
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 money each month.
Stay away from anxiety
When the economy tanked, so did most 401(k) accounts invested mostly in stock. That meant a ton of retirees and soon-to-be retirees were really struggling for a few years. Now, "Generation Y" is really negative about the possibility of retirement.
However, a number of 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) policies or rather 401(k) accounts are beginning to earn again.
Up 25 percent
Reports vary, but a variety of studies and releases from numerous businesses indicate healthy gains in the last few years. Lipper, according to USA Today, reports the average stock mutual fund has appreciated 11.4 percent over the year. Since 401(k) plans are essentially a tax-protected mutual fund with some elements of a trust or other maturing asset, many will have gained that much or possibly more.
The typical 401(k) plan had $74,380 in it, according to Aon Hewitt. That is great news since it was $70,970 at the beginning of the year. The average 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 appreciated by 25 percent in the past three years. Specifically, 401(k) plans appreciated an average 28 percent.
There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it obviously varied a lot by states. Blue states saw 25 percent increases while red states saw 28 percent increases.
Seeing biggest gains
The one thing that is most essential is that those who contributed the most money saw the biggest gains in their 401(k) policies, according to USA Today and Time.
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 money each month.
