With all the bad news going around nowadays, individuals who have 401(k) policies have some great news. Earnings on 401(k) policies have been creeping up over the past year according to press announcements from various outlets.
Do not be concerned about retirement
The Huffington Post explained that there are lots 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) plans were practically lost over the last few years as the economy got really bad.
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 starting to earn again.
Some accounts up 25 percent
Many people have gained at least 11.4 percent or more in their 401(k) plans since they are basically tax-protected mutual funds. The typical stock mutual fund increased 11.4 percent during 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.
Lipper also found the average stock mutual fund has valued 124 percent since the market hit bottom in 2009. Aon Hewitt, a large handler of 401(k) accounts, recently found the typical 401(k) plan had $74,380, compared to $70,970 at the beginning of the year.
Time magazine pointed out that the typical employer-sponsored retirement plan appreciated 25 percent during the last three years, 401(k) policies increased 28 percent, as reported by investment firm Funds Advisor.
Different states saw various increases too. The red states saw a 28 percent increase while blue states only saw 25 percent. Individuals in Arkansas only saw a 1 percent increase while those in Mississippi saw an 80 percent increase.
Big gains for contributors
The one thing that is most essential 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 supposed 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 just a little cash out of pocket per month, it's almost like making a personal bank loan to one's self.
Do not be concerned about retirement
The Huffington Post explained that there are lots 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) plans were practically lost over the last few years as the economy got really bad.
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 starting to earn again.
Some accounts up 25 percent
Many people have gained at least 11.4 percent or more in their 401(k) plans since they are basically tax-protected mutual funds. The typical stock mutual fund increased 11.4 percent during 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.
Lipper also found the average stock mutual fund has valued 124 percent since the market hit bottom in 2009. Aon Hewitt, a large handler of 401(k) accounts, recently found the typical 401(k) plan had $74,380, compared to $70,970 at the beginning of the year.
Time magazine pointed out that the typical employer-sponsored retirement plan appreciated 25 percent during the last three years, 401(k) policies increased 28 percent, as reported by investment firm Funds Advisor.
Different states saw various increases too. The red states saw a 28 percent increase while blue states only saw 25 percent. Individuals in Arkansas only saw a 1 percent increase while those in Mississippi saw an 80 percent increase.
Big gains for contributors
The one thing that is most essential 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 supposed 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 just a little cash out of pocket per month, it's almost like making a personal bank loan to one's self.
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