It seems like there's nothing but not so great news going around these days, but then again a ton of it is down to the media just fear-mongering again because it gets rankings. Anyway, there is something to give some people hope, particularly if they have retirement anxiety. Numerous reports indicated that 401(k) policies are beginning to make money again, after years of stagnation.
Do not stress about retirement
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 market tanked. A lot 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.
USA Today pointed out that a number of people are starting to stress less about retirement as their 401(k) policies and accounts are starting to rebound and earn cash again. It is pretty exciting for lots of people.
Some balances up 25 percent
Lots of people have gained at least 11.4 percent or more in their 401(k) policies 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.
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 start of the year. The average stock mutual fund increased 124 percent since 2009, according to Lipper, which is also great.
During the last three years, the typical employer-sponsored retirement plan valued 25 percent, according to investment firm funds Advisor. The 401(k) plans appreciated 28 percent, according to Time magazine.
The increase varied by state; Mississippians enjoyed an 80 percent increase while individuals 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.
Putting in cash regularly
The one thing that is most significant is that those who contributed the most money saw the biggest gains in their 401(k) plans, according to USA Today and Time.
The way the accounts are intended to work is a sort of "snowball" effect. Roll a snowball down a hill, it gets bigger. Same thing with a 401(k) or Roth or other type of retirement account; the more one contributes and continues to do so, the more it accumulates. Even though it means a little cash out of pocket per month, it's almost like making a personal loan to one's self.
Do not stress about retirement
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 market tanked. A lot 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.
USA Today pointed out that a number of people are starting to stress less about retirement as their 401(k) policies and accounts are starting to rebound and earn cash again. It is pretty exciting for lots of people.
Some balances up 25 percent
Lots of people have gained at least 11.4 percent or more in their 401(k) policies 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.
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 start of the year. The average stock mutual fund increased 124 percent since 2009, according to Lipper, which is also great.
During the last three years, the typical employer-sponsored retirement plan valued 25 percent, according to investment firm funds Advisor. The 401(k) plans appreciated 28 percent, according to Time magazine.
The increase varied by state; Mississippians enjoyed an 80 percent increase while individuals 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.
Putting in cash regularly
The one thing that is most significant is that those who contributed the most money saw the biggest gains in their 401(k) plans, according to USA Today and Time.
The way the accounts are intended to work is a sort of "snowball" effect. Roll a snowball down a hill, it gets bigger. Same thing with a 401(k) or Roth or other type of retirement account; the more one contributes and continues to do so, the more it accumulates. Even though it means a little cash out of pocket per month, it's almost like making a personal loan to one's self.
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