After years of stagnation, 401(k) policies are beginning to earn cash again, which is great news for many people. Those looking down the barrel of retirement and those just starting to save for it are sure to be relieved.
Do not stress about retirement
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 potential for retirement.
USA Today pointed out that a number of people are beginning to stress less about retirement as their 401(k) policies and accounts are starting to rebound and earn cash again. It is pretty exciting for a number of people.
Up 25 percent
Reports vary, but a variety of studies and releases from numerous corporations indicate healthy gains in the last few years. Lipper, according to USA Today, reports the typical stock mutual fund has valued 11.4 percent over the year. Since 401(k) plans 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 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.
Time magazine pointed out that the average employer-sponsored retirement plan appreciated 25 percent in the last three years, 401(k) plans increased 28 percent, as reported by investment firm Funds Advisor.
The increase varied by state; Mississippians enjoyed 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
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 cash into your account every month, it will be able to make more money 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 extra money in, but it can gain a lot more if you put extra cash in regularly.
Do not stress about retirement
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 potential for retirement.
USA Today pointed out that a number of people are beginning to stress less about retirement as their 401(k) policies and accounts are starting to rebound and earn cash again. It is pretty exciting for a number of people.
Up 25 percent
Reports vary, but a variety of studies and releases from numerous corporations indicate healthy gains in the last few years. Lipper, according to USA Today, reports the typical stock mutual fund has valued 11.4 percent over the year. Since 401(k) plans 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 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.
Time magazine pointed out that the average employer-sponsored retirement plan appreciated 25 percent in the last three years, 401(k) plans increased 28 percent, as reported by investment firm Funds Advisor.
The increase varied by state; Mississippians enjoyed 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
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 cash into your account every month, it will be able to make more money 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 extra money in, but it can gain a lot more if you put extra cash in regularly.
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