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.SourcesTimeUSA TodayHuffington Post