4 Secrets of 401(k) Millionaires
There are many roads to wealth, but the 401(k) might be the road most traveled for everyday people. According to estimates by Fidelity Investments, approximately 485,000 of its over 23 million total 401(k) participants had a balance of at least $1 million at the end of March 2024. While a million bucks isn't what it was a decade or two ago, it's still a great financial goal for retirees, especially since the median U.S. family has just $87,000 saved.
So, how do you get the most out of your 401(k) plan? Investors can learn from the triumphs of others; here are four secrets to becoming a 401(k) millionaire yourself.
Vanguard reported last year that 83% of workers eligible to participate in the company's 401(k) plans did so. That's a solid number, but it also means that nearly two in 10 people who could be using a 401(k) are skipping out. It's a painful statistic because not investing means you entirely miss out on the long-term benefits of compounding.
Source Fool.com
