After years of stagnation, 401(k) policies are beginning to earn money again, which is great news for some people. Those looking down the barrel of retirement and those just starting to save for it are sure to be relieved.
Performance of 401(k) plans might ease that retirement 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.
USA Today pointed out that lots of 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.
A 25 percent increase
A lot 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.
Since 2009 when the industry hit rock bottom, the typical stock mutual fund really increase 124 percent, according to Lipper, which is great news. At the beginning of the year, the typical 401(k) account had $70,970, according to Aon Hewitt, which increased to $74,380.
Time magazine pointed out that the typical employer-sponsored retirement plan valued 25 percent in the last three years, 401(k) plans increased 28 percent, as reported by investment firm Funds Advisor.
There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it certainly 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 important 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. Just a little more money should be contributed to the account monthly so that it can make more money every month.
Performance of 401(k) plans might ease that retirement 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.
USA Today pointed out that lots of 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.
A 25 percent increase
A lot 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.
Since 2009 when the industry hit rock bottom, the typical stock mutual fund really increase 124 percent, according to Lipper, which is great news. At the beginning of the year, the typical 401(k) account had $70,970, according to Aon Hewitt, which increased to $74,380.
Time magazine pointed out that the typical employer-sponsored retirement plan valued 25 percent in the last three years, 401(k) plans increased 28 percent, as reported by investment firm Funds Advisor.
There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it certainly 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 important 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. Just a little more money should be contributed to the account monthly so that it can make more money every month.
