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#1399964 - 05/03/13 04:08 AM At the very least 401(k) policies are doing better
lonelygirl Offline
Junior Member

Registered: 03/27/13
Posts: 4
Loc: california, USA
It seems like there's nothing but bad news going around these days, but then again a ton of it is down to the press just fear-mongering again because it gets rankings. Anyway, there is something to give a lot of people hope, specifically if they have retirement nervousness. A number of reports revealed that 401(k) policies are starting to make cash again, after years of stagnation. Source of article:


take a quick look at our blog.



Retirement anxiety all over

In the past few years, lots of people who have 401(k) policies were shocked to see them go from being nest eggs to rotten ones as the stock market tanked. A lot of current and soon-to-be retirees were mortified and cast into uncertainty. According to the Huffington Post, numerous surveys of people in what is called “Generation Y,” the people born after Generation X and missed out on wearing flannel, have indicated this demographic are somewhat pessimistic about retirement.

However, numerous surveys, studies and info 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.



Massive increases

USA Today reports that multiple numbers have been reported, but they all show positive gains in the plans. 401(k) plans are tax-protected mutual funds, more or less, so when Lipper reported an 11.4 percent increase in the average stock mutual fund, it basically meant that retirement accounts are increasing by at least that much.

Lipper also found the typical stock mutual fund has appreciated 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.

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.

There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it definitely varied a lot by states. Blue states saw 25 percent increases while red states saw 28 percent increases.



Seeing largest gains

People who contributed to their 401(k) plans regularly saw the most gains, which both Time and USA Today reported to be a common thing.

If you can put just a little more money into your account each month, it will be able to make more cash 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 cash in, but it can gain a lot more if you put additional cash in regularly.



Sources

Time

USA Today

Huffington Post

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#1400007 - 05/03/13 09:55 AM Re: At the very least 401(k) policies are doing better [Re: lonelygirl]
Sketch Offline
Senior Member

Registered: 03/07/12
Posts: 609
Loc: NYS
Ours have seen notable gains this year. It's nice to see the rebound, and I have hopes that this will continue.
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#1400034 - 05/03/13 11:53 AM Re: At the very least 401(k) policies are doing better [Re: Sketch]
SilverFox Offline
Senior Member

Registered: 11/19/00
Posts: 6362
Loc: Waterloo
Be very careful. Top financial analyst are predicting serious financial problems ahead that will cause a severe downward spiral in the stock market investment and jeopardize America's economy. Basically the worst is yet to come.One report said that the U.S. has borrowed so much from China that their economy is starting to suffer. Oh,well. It is what it is.
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#1400055 - 05/03/13 01:27 PM Re: At the very least 401(k) policies are doing better [Re: SilverFox]
tubby Offline
Senior Member

Registered: 03/12/08
Posts: 1301
Loc: N.Y.
Over the long term, stocks have historically outperformed all other types of investments.

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#1400066 - 05/03/13 02:33 PM Re: At the very least 401(k) policies are doing better [Re: SilverFox]
VM Smith Offline
Diamond Member

Registered: 11/29/05
Posts: 37818
Loc: Ship of Fools
Time To Cash in Your Chips?

by Bill Bonner
Bill Bonner's Diary

Recently by Bill Bonner: Why I'm Praying for Government Incompetence



We don't like the looks of it...

Advisors are too bullish. Investors are too complacent. The financial authorities are too confident.

All up and down Wall Street... in central banks and in Washington... the stuff that goeth before the fall is thick, sticky and stinky.

The economy is recovering, they say. The Fed has the situation in hand, they add. Don't worry... we know what we're doing, they assure us.

Barron's magazine says the Dow is going to 16,000, illustrated with a picture of a bull on a pogo stick.


View Larger Image

Prime Minister Abe says he'll revive the Japanese economy by printing yen to buy Japanese bonds. And speculators take each hint from the Fed as though it were a whisper from God Himself.

And all around them, the real economy struggles to stay even. Here's David Rosenberg of Gluskin Sheff with 12 signs that the economy is weaker than we think:

Household employment (-206,000 in March, the steepest decline in well over a year).
Real retail sales (-0.3% in March, down for the second time in three months).
Manufacturing production (-0.1% and also down in two of the past three months).
Core capex orders (-3.2% in February and, again, down in two of the past three months).
Single-family housing starts (-4.8% in March and negative for two of the past three months, as well).
New home sales (-4.6% in February).
Philly Fed for April down to 1.3 from 2 .
NY Fed Empire manufacturing index down to 3.05 from 9.24.
NAHB Housing Market I ndex down to a six-month low of 42 in April from 44.
Conference Board C onsumer C onfidence I ndex down to 59.7 in March from 68.
University of Michigan consumer sentiment down to 72.3 for April from 78.6, the lowest in over a year.
Conference Board leading indicators down 0.1% in March, first decline in seven months.
Markets Make Opinions

Facts, figures, statistics...

Do you believe them, dear reader? We don't. We're just giving the dreamers a little taste of their own medicine.

"Markets make the opinions," say the old timers. When prices are up, people share the opinion that they are going up. When prices go down, opinions change with falling prices.

And when prices rise, the opinion mongers look for reasons to explain why they have become so bullish. They find indexes, statistics, numbers – all the "facts" confirm their opinion. When prices fall, their opinions grow dark and they need to find new facts that they can use to justify a counter view.

Get a feeling. Form an opinion. Find a fact and pretend that you are a rational, reasonable investor. That's the name of the game.

But are we any different?

Not at all. We're just crankier. More cynical. And less impressed by authority in all its forms. Besides, we've been living in Argentina.

If a Nobel Prize-winning economist tells us that the economy is improving, what do we really know? We know he can talk!

If the president tells us that he and his friends are making the world a better place, what do we do? We laugh!

If a leading financial magazine tells us that the "Big Money" firmly believes the Dow is headed higher, what do we do?

We seriously consider selling!

From bearish fund manager John Hussman: "Rule o' Thumb: When the cover of a major financial magazine features a cartoon of a bull leaping through the air on a pogo stick, it's probably about time to cash in the chips."

April 26, 2013

Bill Bonner is a New York Times bestselling author and founder of Agora, one of the largest independent financial publishers in the world. If you would like to read more of Bill’s essays, sign-up for his free daily e-letter at Bill Bonner’s Diary of a Rogue Economist.
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#1400067 - 05/03/13 02:37 PM Re: At the very least 401(k) policies are doing better [Re: lonelygirl]
VM Smith Offline
Diamond Member

Registered: 11/29/05
Posts: 37818
Loc: Ship of Fools
401K plans aren't "policies". According to the blog you bade us to take a look at, and every other source that I've seen mention 401k's, they are plans, or accounts. IOW, they aren't insurance policies, and they aren't principles or courses.

pol·i·cy
/ˈpäləsē/
Noun
A proposed or adopted course or principle of action.
A contract of insurance.

LOL...if I ever do want to buy a Payday loan, I won't go through your site; I'll use a site put up by one that knows the difference between a policy and a plan.

Good luck with your business, though.


Edited by VM Smith (05/03/13 02:50 PM)
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#1400072 - 05/03/13 03:02 PM Re: At the very least 401(k) policies are doing better [Re: VM Smith]
SilverFox Offline
Senior Member

Registered: 11/19/00
Posts: 6362
Loc: Waterloo
Thanks VM. Regardless of what stocks have done in the past, there are serious warnings from several analysis to watch investments carefully. In the past, we did not have Obama with his socialist agenda. Last near crash cost me at least $30,000. I could not afford to ride it out and took my remaining funds from mutual fund in an safe account earning low interest. Better than losing the rest of what I had inherited.
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#1400086 - 05/03/13 04:11 PM Re: At the very least 401(k) policies are doing better [Re: SilverFox]
kyle585 Offline
Silver Member

Registered: 02/18/09
Posts: 10681
Loc: Somewhere out there
Originally Posted By: SilverFox
Thanks VM. Regardless of what stocks have done in the past, there are serious warnings from several analysis to watch investments carefully. In the past, we did not have Obama with his socialist agenda. Last near crash cost me at least $30,000. I could not afford to ride it out and took my remaining funds from mutual fund in an safe account earning low interest. Better than losing the rest of what I had inherited.
I know it can be scary but if you have left it all in you would have made a bundle by now, right? Too bad that you did not leave at least some of it in the mutual fund. Never put all your eggs in one basket is always good advice.
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#1400089 - 05/03/13 04:42 PM Re: At the very least 401(k) policies are doing better [Re: kyle585]
Frisco kid Offline
Senior Member

Registered: 12/25/11
Posts: 561
Loc: Constantia NY
The market is in for a major correction very soon. The Fed can't keep up their current policies that are artificially inflating stocks.
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#1400122 - 05/03/13 11:04 PM Re: At the very least 401(k) policies are doing better [Re: kyle585]
SilverFox Offline
Senior Member

Registered: 11/19/00
Posts: 6362
Loc: Waterloo
Kyle when half of your money disappears quickly you can not risk the rest of it disappearing and have nothing. Simple as that. Account was frozen for safety. If you can't afford to lose the stock market is no place for you. I was not working toward a retirement fund. I am already retired. Once burned, twice shy.

Frisco Kid is correct the market is due for another correction because the feds polices of inflation.
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Don't blame me. I voted for Romney.

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#1400125 - 05/04/13 12:57 AM Re: At the very least 401(k) policies are doing better [Re: Frisco kid]
VM Smith Offline
Diamond Member

Registered: 11/29/05
Posts: 37818
Loc: Ship of Fools
Quote:
The Fed can't keep up their current policies that are artificially inflating stocks.


That's it, in a nutshell.
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Every day is a beautiful day in East Tennessee.

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#1400341 - 05/06/13 11:06 AM Re: At the very least 401(k) policies are doing better [Re: Frisco kid]
Sketch Offline
Senior Member

Registered: 03/07/12
Posts: 609
Loc: NYS
Originally Posted By: Frisco kid
The market is in for a major correction very soon. The Fed can't keep up their current policies that are artificially inflating stocks.


The correction has occured. We are on the uptick.
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Do what you have to do...

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#1400364 - 05/06/13 01:19 PM Re: At the very least 401(k) policies are doing better [Re: Sketch]
SilverFox Offline
Senior Member

Registered: 11/19/00
Posts: 6362
Loc: Waterloo
I sincerely hope you are correct.
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Don't blame me. I voted for Romney.

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#1400389 - 05/06/13 02:49 PM Re: At the very least 401(k) policies are doing better [Re: Sketch]
Frisco kid Offline
Senior Member

Registered: 12/25/11
Posts: 561
Loc: Constantia NY
Originally Posted By: Sketch
Originally Posted By: Frisco kid
The market is in for a major correction very soon. The Fed can't keep up their current policies that are artificially inflating stocks.


The correction has occured. We are on the uptick.

If you believe that then you are in for a very rude awakening.
_________________________
I cook with wine, sometimes I even add it to the food.

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#1400398 - 05/06/13 04:27 PM Re: At the very least 401(k) policies are doing better [Re: Frisco kid]
tubby Offline
Senior Member

Registered: 03/12/08
Posts: 1301
Loc: N.Y.
There is no better investment than the stock market.

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#1400495 - 05/07/13 10:56 AM Re: At the very least 401(k) policies are doing better [Re: Frisco kid]
Sketch Offline
Senior Member

Registered: 03/07/12
Posts: 609
Loc: NYS
Originally Posted By: Frisco kid
Originally Posted By: Sketch
Originally Posted By: Frisco kid
The market is in for a major correction very soon. The Fed can't keep up their current policies that are artificially inflating stocks.


The correction has occured. We are on the uptick.

If you believe that then you are in for a very rude awakening.


I'm positive about the positive turn of events. The housing market has seen a significant correction, unemployment is slowly dropping, etc. I'm in it for the long haul.
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Do what you have to do...

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#1400500 - 05/07/13 11:09 AM Re: At the very least 401(k) policies are doing better [Re: SilverFox]
kyle585 Offline
Silver Member

Registered: 02/18/09
Posts: 10681
Loc: Somewhere out there
Originally Posted By: SilverFox
I sincerely hope you are correct.
But you no longer have any money in the market so why does it matter to you?
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DON'T GO NEAR CAYUGA NATION! IT'S TOO DANGEROUS!


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#1400518 - 05/07/13 01:06 PM Re: At the very least 401(k) policies are doing better [Re: kyle585]
SilverFox Offline
Senior Member

Registered: 11/19/00
Posts: 6362
Loc: Waterloo
Because I think there is another serious correction coming that will make the last one look like a hiccup and I hate to see others lose like I did. Too many are investing with a false sense of security. I hope I am wrong and the ones predicting everything is getting better are right.


Never forget the government is good at manipulating figures to present a better situation than may actually be the case.


Edited by SilverFox (05/07/13 03:24 PM)
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Don't blame me. I voted for Romney.

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#1400527 - 05/07/13 01:32 PM Re: At the very least 401(k) policies are doing better [Re: SilverFox]
tubby Offline
Senior Member

Registered: 03/12/08
Posts: 1301
Loc: N.Y.
You lose if you would have left your investments alone for the last twenty years you would be way ahead.

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#1400532 - 05/07/13 02:05 PM Re: At the very least 401(k) policies are doing better [Re: SilverFox]
VM Smith Offline
Diamond Member

Registered: 11/29/05
Posts: 37818
Loc: Ship of Fools
_________________________
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