The boom of the 401k millionaire next door
Bottom Line: One of the great things about becoming a millionaire is how easy it is to achieve over time. I’m not saying that working your butt off and occasionally sacrificing on the fun stuff to prioritize saving and investing over time is easy. It’s just that it’s numbers and compound interest. As my “millionaire plan” suggests it’s something the average person can do within 25 years. With the best economy, raises in a generation, and a stock market that reflects it, Fidelity’s quarterly 401k report showed something exciting for tens of thousands of households. They’re 401k millionaires.
According to Fidelity’s report there are 45% more millionaires year over year...that’s awesome! In the case of Fidelity, that equaled about 50,000 more households but that’s less important than the percent of increase because it’s reflective of all 401k accounts – not just those held by Fidelity. Fidelity has just under a quarter of the 401k market so all in it looks like 200,000+ more American families are millionaires compared to a year ago. More than 11 million Americans are millionaires, also a new record. And hundreds of thousands of them are from their 401k alone. If you haven't checked yours recently – you might be pleasantly surprised.