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 ratings. At any rate, there is something to give some people hope, particularly if they have retirement nervousness. Numerous reports revealed that 401(k) plans are beginning to make cash again, after years of stagnation.
Keep away from anxiety
In the past few years, many people who have 401(k) plans were shocked to see them go from being nest eggs to rotten ones as the stock market 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 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.
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) plans or rather 401(k) accounts are beginning to earn again.
Going up by 25 percent
USA Today reports that multiple numbers have been reported, but they all show positive gains in the plans. 401(k) plans are tax-protected mutual funds, more or less, so when Lipper reported an 11.4 percent increase in the average stock mutual fund, it basically meant that retirement accounts are growing by at least that much.
Since 2009 when the market hit rock bottom, the typical stock mutual fund actually increase 124 percent, according to Lipper, which is great news. At the start of the year, the typical 401(k) account had $70,970, according to Aon Hewitt, which increased to $74,380.
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.
The increase varied by state; Mississippians liked 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.
Huge gains for contributors
The one thing that is most essential is that those who contributed the most cash saw the biggest gains in their 401(k) plans, according to USA Today and Time.
If you can put just a little more money into your account every month, it will be able to make more money 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 extra money in, but it can gain a lot more if you put additional cash in regularly.
Keep away from anxiety
In the past few years, many people who have 401(k) plans were shocked to see them go from being nest eggs to rotten ones as the stock market 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 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.
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) plans or rather 401(k) accounts are beginning to earn again.
Going up by 25 percent
USA Today reports that multiple numbers have been reported, but they all show positive gains in the plans. 401(k) plans are tax-protected mutual funds, more or less, so when Lipper reported an 11.4 percent increase in the average stock mutual fund, it basically meant that retirement accounts are growing by at least that much.
Since 2009 when the market hit rock bottom, the typical stock mutual fund actually increase 124 percent, according to Lipper, which is great news. At the start of the year, the typical 401(k) account had $70,970, according to Aon Hewitt, which increased to $74,380.
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.
The increase varied by state; Mississippians liked 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.
Huge gains for contributors
The one thing that is most essential is that those who contributed the most cash saw the biggest gains in their 401(k) plans, according to USA Today and Time.
If you can put just a little more money into your account every month, it will be able to make more money 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 extra money in, but it can gain a lot more if you put additional cash in regularly.
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