Mark booked an appointment to discuss his concerns about securing a comfortable retirement. “David, with so much market fluctuation, I’m worried about my 401(k). Is it even possible to become a 401(k) millionaire?”
I smiled, understanding his apprehension. “Mark, achieving a seven-figure 401(k) balance is more attainable than you might think. Fidelity Investments reported that the number of 401(k) accounts with balances of $1 million or more reached 544,000 in the third quarter of 2024, up 9.5% from the previous quarter.”
Mark’s eyes widened. “That’s encouraging. But how did they achieve that, especially with market volatility?”
“Consistency and a long-term perspective are key,” I explained. “Most millionaires don’t make their wealth overnight. On average, they’ve been contributing to their 401(k) accounts for over 25 years and maintaining a disciplined savings rate. And of course, favorable market conditions do play a role in boosting account balances.”
Mark nodded. “So, starting early and staying consistent matters … but what if someone is starting later in their career?”
“It’s never too late to start. If you’re over 50, increase your contribution rate, take advantage of employer matches, and consider making catch-up contributions. That will significantly impact your retirement savings. The key is to remain committed and avoid making impulsive decisions based on short-term market movements.”
“So patience and strategy are the keys?”
“Exactly,” I agreed. “By maintaining a steady savings plan and keeping a long-term investment horizon, reaching that 401(k)-millionaire milestone could still be within your grasp.”
“So what do we do next?” asked Mark.
“So far, we’ve been talking about what’s possible. Let’s look at your actual plan and your contributions, run the numbers, see where you’re really at, and come up with a strategy that makes sense for you.
Place your plan in the hands of the professionals at Concierge Retirement Services.