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 ratings. Anyway, there is something to give some people hope, particularly if they have retirement anxiety. Numerous reports revealed that 401(k) policies are starting to make cash again, after years of stagnation.
The Huffington Post explained that there are many people in \”Generation Y\” who are really negative about having a potential retirement. Soon to be retirees and current ones were really upset when their 401(k) policies were practically lost over the last few years as the economy got really bad.
A bunch of 401(k) plans and accounts are starting to make more cash now, which is some good news for a number of people nearing retirement, according to USA Today.
Increasing by 25 percent
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 typical stock mutual fund, it essentially meant that retirement accounts are growing by at least that much.
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 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 valued an average 28 percent.
The increase varied by state; Mississippians liked an 80 percent increase while individuals 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.
Putting in cash regularly
People who contributed to their 401(k) policies regularly saw the most gains, which both Time and USA Today reported to be a common thing.
Just like a snowball, retirement accounts can make more money and accumulate more with more cash added to it. Just a little more cash should be contributed to the account monthly so that it can make more money each month.
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