It seems like there's nothing but bad news going around nowadays, but then again a ton of it is down to the press just fear-mongering again because it gets rankings. At any rate, there is something to give a lot of people hope, particularly if they have retirement anxiety. A number of reports revealed that 401(k) plans are beginning to make money again, after years of stagnation.
Get the retirement plan you were guaranteed
In the past few years, a lot of people who have 401(k) plans were shocked to see them go from being nest eggs to rotten ones as the stock market tanked. A large number of current and soon-to-be retirees were mortified and cast into uncertainty. According to the Huffington Post, a number of surveys of individuals 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) policies or rather 401(k) accounts are beginning to earn again.
Large increases
A lot of people have gained at least 11.4 percent or more in their 401(k) policies since they are essentially tax-protected mutual funds. The average 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 appreciated 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.
Time magazine pointed out that the typical employer-sponsored retirement plan valued 25 percent during the last three years, 401(k) policies increased 28 percent, as reported by investment firm Funds Advisor.
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.
Big gains for contributors
If there's a typical thread through some of these, both USA Today and Time both report that the largest gains were universally realized by people who continually contribute to their 401(k) policies.
If you can put just a little more cash into your account each month, it will be able to make more cash in the end. It is a "snowball" impact 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 more if you put extra cash in regularly.
Get the retirement plan you were guaranteed
In the past few years, a lot of people who have 401(k) plans were shocked to see them go from being nest eggs to rotten ones as the stock market tanked. A large number of current and soon-to-be retirees were mortified and cast into uncertainty. According to the Huffington Post, a number of surveys of individuals 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) policies or rather 401(k) accounts are beginning to earn again.
Large increases
A lot of people have gained at least 11.4 percent or more in their 401(k) policies since they are essentially tax-protected mutual funds. The average 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 appreciated 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.
Time magazine pointed out that the typical employer-sponsored retirement plan valued 25 percent during the last three years, 401(k) policies increased 28 percent, as reported by investment firm Funds Advisor.
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.
Big gains for contributors
If there's a typical thread through some of these, both USA Today and Time both report that the largest gains were universally realized by people who continually contribute to their 401(k) policies.
If you can put just a little more cash into your account each month, it will be able to make more cash in the end. It is a "snowball" impact 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 more if you put extra cash in regularly.
Aucun commentaire:
Enregistrer un commentaire