With all the bad news going around these days, people who have 401(k) plans have some great news. Earnings on 401(k) policies have been creeping up over the past year according to press announcements from numerous outlets.
Retirement anxiety all over
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 potential for retirement.
However, a number of surveys, studies and data 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.
Huge increases
Reports vary, but a variety of studies and releases from numerous companies indicate healthy gains during the last few years. Lipper, according to USA Today, reports the typical stock mutual fund has valued 11.4 percent over the year. Since 401(k) plans are basically 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 start of the year. The average stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.
Time magazine pointed out that the average employer-sponsored retirement plan valued 25 percent during the last three years, 401(k) plans increased 28 percent, as reported by investment firm Funds Advisor.
The increase varied by state; Mississippians liked 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 money regularly
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) policies.
Just like a snowball, retirement accounts can make more cash and accumulate more with more cash added to it. Just a little more cash should be contributed to the account monthly so that it can make more cash every month.
Retirement anxiety all over
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 potential for retirement.
However, a number of surveys, studies and data 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.
Huge increases
Reports vary, but a variety of studies and releases from numerous companies indicate healthy gains during the last few years. Lipper, according to USA Today, reports the typical stock mutual fund has valued 11.4 percent over the year. Since 401(k) plans are basically 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 start of the year. The average stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.
Time magazine pointed out that the average employer-sponsored retirement plan valued 25 percent during the last three years, 401(k) plans increased 28 percent, as reported by investment firm Funds Advisor.
The increase varied by state; Mississippians liked 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 money regularly
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) policies.
Just like a snowball, retirement accounts can make more cash and accumulate more with more cash added to it. Just a little more cash should be contributed to the account monthly so that it can make more cash every month.
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