More Investors Join the Ranks of 401(k) Millionaires

Saving for retirement requires dedication, focus, and some sacrifice–a three-pronged approach embraced by a greater number of investors!

Nearly 500,000 retirement savers are now 401(k) millionaires, according to Q2 stats compiled by Fidelity Investments. Equally encouraging–of the 48 million Fidelity accounts, the average 401(k) balance was $127,100 in Q2. 

What are the keys to 401(k) success? 

Fidelity asked its millionaires, and the answers are some of the same ideas we always talk about!

When we created your portfolio strategy, we considered all of your assets, including your company-sponsored plans. If anything has changed, please let me know as soon as possible. We might need to make some adjustments so you can take advantage of everything you are being offered.

Once you reach age 73, you must begin taking required minimum distributions (RMDs) from your 401(k) or any other defined contribution plan in most circumstances. Withdrawals from your 401(k) or any other defined contribution plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.  

Mutual funds are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money. 

Past performance does not guarantee future results. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost. 

Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

This illustration is for informational purposes only and is not a replacement for real-life advice. Consult your tax or accounting professionals before taking an early distribution.

^{InvestmentNews.com, August 28, 2024. “401(k) millionaires reach another record in Q2, says Fidelity”}

^{Fidelity.com/viewpoints, 2024. “Five habits of 401(k) millionaires}