With all the not so great news going around nowadays, people who have 401(k) policies have some good news. Earnings on 401(k) plans have been sneaking up over the past year according to press announcements from numerous outlets.
Avoid anxiety
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) policies were practically lost over the last few years as the economy got really bad.
A lot of 401(k) plans and accounts are beginning to make more money now, which is some great news for a lot of people nearing retirement, according to USA Today.
A 25 percent boost
Reports vary, but a variety of studies and releases from numerous businesses indicate healthy gains during the last few years. Lipper, according to USA Today, reports the average 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.
Since 2009 when the market hit rock bottom, the average stock mutual fund really increase 124 percent, according to Lipper, which is good news. At the start of the year, the typical 401(k) account had $70,970, according to Aon Hewitt, which increased to $74,380.
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) policies valued an average 28 percent.
There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it obviously varied a lot by states. Blue states saw 25 percent increases while red states saw 28 percent increases.
Huge gains for contributors
The one thing that is most significant is that those who contributed the most cash saw the biggest gains in their 401(k) policies, according to USA Today and Time.
If you can put a little more money into your account every month, it will be able to make a lot 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 additional money in, but it can gain more if you put extra cash in regularly.
Avoid anxiety
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) policies were practically lost over the last few years as the economy got really bad.
A lot of 401(k) plans and accounts are beginning to make more money now, which is some great news for a lot of people nearing retirement, according to USA Today.
A 25 percent boost
Reports vary, but a variety of studies and releases from numerous businesses indicate healthy gains during the last few years. Lipper, according to USA Today, reports the average 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.
Since 2009 when the market hit rock bottom, the average stock mutual fund really increase 124 percent, according to Lipper, which is good news. At the start of the year, the typical 401(k) account had $70,970, according to Aon Hewitt, which increased to $74,380.
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) policies valued an average 28 percent.
There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it obviously varied a lot by states. Blue states saw 25 percent increases while red states saw 28 percent increases.
Huge gains for contributors
The one thing that is most significant is that those who contributed the most cash saw the biggest gains in their 401(k) policies, according to USA Today and Time.
If you can put a little more money into your account every month, it will be able to make a lot 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 additional money in, but it can gain more if you put extra cash in regularly.
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