There are 378,000 401(k) accounts at Fidelity with a balance of over $1 million. What stands out among these 401(k) millionaires?
Extremely high savings rates!!!
On average, they save 17.2% of their pay.
12 replies (most recent on top)
I know some folks who hit 750k to 1 million worth of TMUS stocks at its peak after keeping all RSUs ESPP since IPO.
Hit $1M by my late 30s. Maxed out dollar amount every year I’ve worked.
Just do the minium if you don’t have enough money and increase annually. You have to also enjoy early life if you can, time doesn’t go back money can go forward.
I used to be one of those over 1mil, then 2021,22 happened
When T-Mobile started offering the Roth 401k I rolled over into that. Also have to keep an eye on what the investments are actually in. Sometimes they pick stuff that don't earn much if anything at all.
20% each paycheck from January to whenever I hit the yearly contribution threshold. Also contribute to catch up provision.
This is my 5th decade working and contributing so when the time comes I should be in a good position financially. That is of course unless our corrupt government changes the rules of the game.
8% tax? A simple google search will show you that the person who left this comment has no clue. There is a change for high earners over 50 that are doing catch up which will require that to go into a ROTH. This means pay taxes up front but never again.
Do your research and ignore the doomsdayers
Just wait, the government is about to apply an 8% annual tax on all 401k's. Bye bye 401 Millionaires! Cheers!
I was laid off last week and am one of those high saving 401K millionaires. This has made for a no stress transition while a take a break from work life. I know many people around me that were saving nothing all, driving expensive cars and wearing $200 shoes.
I made less money than these people but was also a super saver.
I am sure these same people would gladly return their stuff if could be replaced with a significant emergency fund.
It is not hard to be a saver. It just takes a small amount of discipline.
401K saving is the best since it is taken out of your check and your never see it. That takes away the temptation to spend it.
No, I am not old enough to retire and use that 401K just yet but is feels good knowing it is sitting there growing and as a result I have no worries about my retirement future.
Meanwhile, I will take my severance, dip into my emergency fund and enjoy some dream travel include a trip to Greece that I booked this morning.
If you pass this round of layoffs, congratulations! Let it be a less to get prepared for the next one. Be a saver!
Agreed. If you can afford it make sure you set automatic deductions to go to into 401k and get the match. Free money, can’t go wrong with that.
I’m sitting on close to a quarter mil from ESPP and RSUs.
Hey thanks! Now that T-Mobile won't put any more in my 401k, I guess I need to open up a new Roth IRA so I can do it myself...
Investing, and investing with consistency at least 20% of your gross pay is highly likely to make you a millionaire in a couple decades or so.