Record 401(k) Millionaires: How to Join Them
Yahoo Finance
According to Fidelity's recent data, there are now about 497,000 401(k) plan participants maintaining balances of at least $1 million each. This surge is attributed to consistent saving and wise investment strategies. Financial adviser Tracy Burns elaborates on effective methods to increase retirement savings, emphasizing the importance of consistency akin to maintaining a diet. She notes that many successful savers made contributions regularly without withdrawing early, allowing their funds to grow over time. Burns suggests evaluating investments periodically and adjusting contributions, especially after receiving raises. Above all, she underscores the necessity of maximizing employer matching contributionsβfree money that can significantly boost savings. Following these guidelines can help individuals not only reach $1 million in their 401(k) accounts but also secure their financial future.
Highlights
- β’ Fidelity reports a record 497,000 401(k) millionaires.
- β’ Consistent contributions are key to growing your savings.
- β’ Avoid withdrawing funds from your 401(k) early.
- β’ Maximize employer matching contributions.
- β’ Revisit and diversify your investment choices regularly.
- β’ Increase your 401(k) contributions with salary raises.
- β’ Consider tax advantages of contributing to your 401(k).
- β’ Stay disciplined in saving, much like maintaining a diet.
- β’ Invest early and let compound growth work for you.
- β’ Plan for your retirement savings early, regardless of current income.
* dvch2000 helped DAVEN to generate this content on 09/15/2024 .
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