After years of stagnation, 401(k) policies are beginning to earn money again, which is really good news for many people. Those looking down the barrel of retirement and those just starting to save for it are sure to be relieved.
Retirement anxiety all over
The Huffington Post explained that there are lots of people in "Generation Y" who are really negative about having a possible retirement. Soon to be retirees and current ones were really upset when their 401(k) plans were practically lost over the last few years as the economy got really bad.
A variety of 401(k) plans and accounts are starting to make more money now, which is some great news for a number of people nearing retirement, according to USA Today.
A 25 percent increase
Reports vary, but a variety of studies and releases from various businesses indicate healthy gains during the last few years. Lipper, according to USA Today, reports the typical stock mutual fund has appreciated 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.
The typical 401(k) plan had $74,380 in it, according to Aon Hewitt. That is good news since it was $70,970 at the beginning of the year. The typical stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.
In the last three years, the typical employer-sponsored retirement plan valued 25 percent, according to investment firm funds Advisor. The 401(k) policies valued 28 percent, according to Time magazine.
There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it certainly varied a lot by states. Blue states saw 25 percent increases while red states saw 28 percent increases.
Normal contributors enjoyed biggest gains
If there's a typical thread through some of these, both USA Today and Time both report that the largest gains were universally recognized by people who continually contribute to their 401(k) policies.
The way the accounts are supposed to work is a kind of "snowball" impact. Roll a snowball down a hill, it gets bigger. Same thing with a 401(k) or Roth or other type of retirement account; the more one contributes and continues to do so, the more it accumulates. Even though it means a little cash out of pocket per month, it's almost like making a personal loan to one's self.
Retirement anxiety all over
The Huffington Post explained that there are lots of people in "Generation Y" who are really negative about having a possible retirement. Soon to be retirees and current ones were really upset when their 401(k) plans were practically lost over the last few years as the economy got really bad.
A variety of 401(k) plans and accounts are starting to make more money now, which is some great news for a number of people nearing retirement, according to USA Today.
A 25 percent increase
Reports vary, but a variety of studies and releases from various businesses indicate healthy gains during the last few years. Lipper, according to USA Today, reports the typical stock mutual fund has appreciated 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.
The typical 401(k) plan had $74,380 in it, according to Aon Hewitt. That is good news since it was $70,970 at the beginning of the year. The typical stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.
In the last three years, the typical employer-sponsored retirement plan valued 25 percent, according to investment firm funds Advisor. The 401(k) policies valued 28 percent, according to Time magazine.
There was an 80 percent increase seen in Mississippi and 1 percent in Arkansas, so it certainly varied a lot by states. Blue states saw 25 percent increases while red states saw 28 percent increases.
Normal contributors enjoyed biggest gains
If there's a typical thread through some of these, both USA Today and Time both report that the largest gains were universally recognized by people who continually contribute to their 401(k) policies.
The way the accounts are supposed to work is a kind of "snowball" impact. Roll a snowball down a hill, it gets bigger. Same thing with a 401(k) or Roth or other type of retirement account; the more one contributes and continues to do so, the more it accumulates. Even though it means a little cash out of pocket per month, it's almost like making a personal loan to one's self.
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