After years of stagnation, 401(k) policies are starting to earn cash again, which is really good news for many people. Those looking down the barrel of retirement and those just beginning to save for it are sure to be happy.
Retirement anxiety all over
The Huffington Post explained that there are a number of people in "Generation Y" who are really negative about having a potential retirement. Soon to be retirees and current ones were really upset when their 401(k) policies were practically lost over the last few years as the economy got really bad.
USA Today pointed out that a lot of people are beginning to stress less about retirement as their 401(k) policies and accounts are beginning to rebound and earn cash again. It is pretty exciting for many people.
Huge increases
Reports vary, but a variety of studies and releases from several corporations 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) policies 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 average 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 typical 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 valued by 25 percent in the past three years. Specifically, 401(k) policies appreciated an average 28 percent.
Different states saw various increases too. The red states saw a 28 percent increase while blue states only saw 25 percent. People in Arkansas only saw a 1 percent increase while those in Mississippi saw an 80 percent increase.
Regular contributors loved biggest gains
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 a little more cash into your account each month, it will be able to make more money in the end. It is a "snowball" effect where the snowball gets bigger as it rolls down the bill and gets more snow. The 401(k) will get bigger without putting extra cash in, but it can gain a lot more if you put extra cash in regularly.
Retirement anxiety all over
The Huffington Post explained that there are a number of people in "Generation Y" who are really negative about having a potential retirement. Soon to be retirees and current ones were really upset when their 401(k) policies were practically lost over the last few years as the economy got really bad.
USA Today pointed out that a lot of people are beginning to stress less about retirement as their 401(k) policies and accounts are beginning to rebound and earn cash again. It is pretty exciting for many people.
Huge increases
Reports vary, but a variety of studies and releases from several corporations 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) policies 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 average 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 typical 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 valued by 25 percent in the past three years. Specifically, 401(k) policies appreciated an average 28 percent.
Different states saw various increases too. The red states saw a 28 percent increase while blue states only saw 25 percent. People in Arkansas only saw a 1 percent increase while those in Mississippi saw an 80 percent increase.
Regular contributors loved biggest gains
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 a little more cash into your account each month, it will be able to make more money in the end. It is a "snowball" effect where the snowball gets bigger as it rolls down the bill and gets more snow. The 401(k) will get bigger without putting extra cash in, but it can gain a lot more if you put extra cash in regularly.
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