A record number of investors became 401(k) millionaires this spring.
At the end of the second quarter, 168,000 people with 401(k)s managed by Fidelity Investments had at least $1 million in their accounts, a rise of 50,000 people from a year earlier when there were 118,000, according to a new study by Fidelity, one of the nation’s largest administrators of workplace retirement accounts. While gaining, that exclusive group of savers is still just a fraction of the 16.1 million people who have a 401(k) account managed by the fund company.
Building a million bucks-sized nest egg doesn’t happen overnight and is a result of workers who invest for the long term and put a chunk of their savings into stocks.
“Individuals are increasing their savings rates, they’re taking advantage of their company match and they’re keeping a healthy percentage of stocks in their account,” says Jeanne Thompson, senior vice president at Fidelity Investments. “It takes many years of consistent saving and investing, but following these steps as part of a long-term retirement strategy can put an individual in a good position to eventually reach this savings milestone.”