Last week, Fidelity, one of the largest retirement account administrators in the U.S., reported that the number of people who had 401(k)s worth more than $1 million had more than doubled last year. That followed a study last year by Fidelity about people who made less then $150,000 and yet were still able to amass a seven-figure savings account. Fidelity found that these super savers displayed five traits in common. The implication was that there is an easy prescription to becoming a 401(k) millionaire. A year later, Fidelity is back and, with the help of some media outlets, is pointing again to its earlier research. See, it works. Aren’t 401(k)s great?

This, of course, runs counter to some of the articles that some (including me ) have written about 401(k)s. I once called 401(k)s a “lousy idea, a financial flop, a rotten repository for our retirement reserves.” But if 401(k)s are now minting millionaires, maybe I was wrong. And hey, I have a 401(k) that has far less than $1 million in it. I want it to have more, and more than $1 million would be great. So I decided to take a look at Fidelity’s five tips to see if I, too, could become a 401(k) millionaire.

Take Fidelity’s first “habit” of 401(k) millionaires, presumably the first thing you and I will need to do to mint a fortune in our retirement accounts. Step one: Have a job and keep the same one for more than three decades. Fidelity found that, on average, 401(k) millionaires had worked for the same company for 34 years. And that’s the average!

Last week, Fidelity, one of the largest retirement account administrators in the U.S., reported that the number of people who had 401(k)s worth more than $1 million had more than doubled last year. That followed a study last year by Fidelity about people who made less then $150,000 and yet were still able to amass a seven-figure savings account. Fidelity found that these super savers displayed five traits in common. The implication was that there is an easy prescription to becoming a 401(k) millionaire. A year later, Fidelity is back and, with the help of some media outlets, is pointing again to its earlier research. See, it works. Aren’t 401(k)s great?

This, of course, runs counter to some of the articles that some (including me ) have written about 401(k)s. I once called 401(k)s a “lousy idea, a financial flop, a rotten repository for our retirement reserves.” But if 401(k)s are now minting millionaires, maybe I was wrong. And hey, I have a 401(k) that has far less than $1 million in it. I want it to have more, and more than $1 million would be great. So I decided to take a look at Fidelity’s five tips to see if I, too, could become a 401(k) millionaire.

Take Fidelity’s first “habit” of 401(k) millionaires, presumably the first thing you and I will need to do to mint a fortune in our retirement accounts. Step one: Have a job and keep the same one for more than three decades. Fidelity found that, on average, 401(k) millionaires had worked for the same company for 34 years. And that’s the average!

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The Fidelity Advantage - Why Fidelity

Posted by 2018 article