Saturday, December 12, 2009
Benefits of sticking with Retirement Plans
By Jorden Meltz
The recent economic struggles that many have faced impacted the way they planned for retirement and the contribution, if any, they made towards retirement accounts. Although many may have needed the money elsewhere recent reports have shown that if people would have continued to invest and followed their retirement plans they would have more money in their accounts then before the economic downturn. The Vanguard Group Inc. recently announced that 60% of people with retirement accounts who kept their money invested and continued to invest have more money in their accounts then before the market started to decline. Much of these results were dependent upon investment risk, as younger investors were able to recover more of their money at a much quicker and more successful rate than older investors, whom are less likely to take risks while investing. The results of better market performance have also been seen on a larger scale as net worth has increased for the second straight quarter, this time increasing by five percent. Although many may have needed the money for current expenses a lesson to be learned from the past year and a half is that if you have the ability it is worth investing during times of economic downturn as there is great potential to realize large returns.