For much of this year, Melissa Roukous couldn't bear to read her 401(k) statement. The stock market collapse of 2008 drained more than 35 percent from her retirement account and steep market declines earlier this year gave her little reason for optimism.
"For a while, I felt hopeless about my future," said the marketing executive from Boca Raton, Fla.
But, with the stock market recovering more than 3,400 points since bottoming out in March, Roukous, 39, said her fear of peeking at her 401(k) balance sheet has waned.
"I am so relieved that my balance is finally going back up," she said.
Her 401(k) is now slightly ahead of pre-bust levels. "The upturn in the market makes me feel more confident about my future," she said
The stock market's dramatic rise is not only making bankers and traders giddy. It's also putting a smile on the faces of millions of Americans whose retirement accounts were decimated in the wake of a fierce economic collapse .
About $2.7 trillion was lost in 401(k) and individual retirement accounts between September 2007 and May of 2009, according to the Urban Institute , a Washington-based independent research group.
That level of investment loss won't be recovered any time soon and economic uncertainty portends a difficult future for many 401(k) accounts, financial experts say.
But the major stock indexes have rebounded by 50 percent or more since early March, and the economy is showing tangible signs of stabilizing. And that is spelling relief for anyone who watched their 401(k) accounts falter.
The Employee Benefit Research Institute and the Investment Company Institute recently released a report showing that many investors' 401(k) account balances have risen above the levels recorded at the beginning of 2008
"You had millions of people nearing retirement who were in a panic," said Dennis Suckstorf, a financial planner with Financial Advantage in Columbia, Md. "Many of them still are, but a stabilizing stock market will ease some of those fears."
The Dow Jones Industrial Average, one of the most-watched markers of the financial world, closed above 10,000 points Wednesday, underscoring the stock market's recovery from last year's financial crisis.
Even some of the recession's biggest losers are seeing gains. Goldman Sachs , among the investment banks that received a government bailout, closed Wednesday at $192.28 a share, after trading as low as $47.41 in the past year. And, this week, JP Morgan Chase, another once-reeling financial institution, reported $3.6 billion in profit for the third quarter.
All of the bullish economic news has been good news for 401(k) accounts, analysts say.
"People are a little less afraid to peek at their statements now," said Luke Vandermillen, vice president of retirement and investor services at Principal Financial Group Inc., a large 401(k) provider. "After a very difficult climate for retirement accounts, the recent economic news is certainly much better."
Nearly 73 million Americans, or a little less than 50 percent of the working population, have a 401(k), according to the Society of Professional Asset-Managers and Record Keepers. Americans pour more than $200 billion into 401(k) accounts each year, the group said.