It seems like there's nothing but bad news going around these days, but then again a lot of it is down to the press just fear-mongering again because it gets ratings. Anyway, there is something to give a lot of people hope, specifically if they have retirement nervousness. A number of reports indicated that 401(k) plans are starting to make money again, after years of stagnation.
Avoid 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 chance of retirement.
A variety of 401(k) plans and accounts are beginning to make more money now, which is some good news for a number of people nearing retirement, according to USA Today.
Increasing by 25 percent
Reports vary, but a variety of studies and releases from numerous companies indicate healthy gains in the last few years. Lipper, according to USA Today, reports the typical stock mutual fund has appreciated 11.4 percent over the year. Since 401(k) policies 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.
Lipper also found the typical stock mutual fund has valued 124 percent since the industry 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 start of the year.
According to Time magazine, investment firm Funds Advisor found the median employer-sponsored retirement plan had appreciated by 25 percent in the past three years. Specifically, 401(k) plans appreciated an average 28 percent.
The increase varied by state; Mississippians liked an 80 percent increase while people 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.
Most gains
If there's a common thread through some of these, both USA Today and Time both report that the largest gains were universally recognized by people who continually contribute to their 401(k) policies.
Just like a snowball, retirement accounts can make more money and accumulate more with more money added to it. A little more cash should be contributed to the account monthly so that it can make more cash each month.
Avoid 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 chance of retirement.
A variety of 401(k) plans and accounts are beginning to make more money now, which is some good news for a number of people nearing retirement, according to USA Today.
Increasing by 25 percent
Reports vary, but a variety of studies and releases from numerous companies indicate healthy gains in the last few years. Lipper, according to USA Today, reports the typical stock mutual fund has appreciated 11.4 percent over the year. Since 401(k) policies 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.
Lipper also found the typical stock mutual fund has valued 124 percent since the industry 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 start of the year.
According to Time magazine, investment firm Funds Advisor found the median employer-sponsored retirement plan had appreciated by 25 percent in the past three years. Specifically, 401(k) plans appreciated an average 28 percent.
The increase varied by state; Mississippians liked an 80 percent increase while people 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.
Most gains
If there's a common thread through some of these, both USA Today and Time both report that the largest gains were universally recognized by people who continually contribute to their 401(k) policies.
Just like a snowball, retirement accounts can make more money and accumulate more with more money added to it. A little more cash should be contributed to the account monthly so that it can make more cash each month.