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OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7481 posts

Retirement account millionaires rise at Fidelity
quote:

The number of people with 401(k) and IRA balances that topped a million dollars hit a record in the second quarter.

The number of investors with at least $1 million in their 401(k) accounts at Fidelity reached 196,000, according to USA Today.

That is up from the 180,000 in the previous quarter. IRA millionaires increased to 179,700 from 168,100.


LINK

I’m actually shocked the numbers are so low. Only 196,000 people have over $1MM in their 401k and only 179,000 have over $1MM in their IRA. Presumably there’s bleed over between the two populations. Fidelity is the largest company in defined contribution assets last I checked. Sad statement of the America’s retirement outlook.
This post was edited on 8/21 at 12:01 pm


jimbeam
USA Fan
University of LSU
Member since Oct 2011
56779 posts

re: Retirement account millionaires rise at Fidelity
Just wait until the stock market crashes.

/sarcasm


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132
GCTigahs
Member since Oct 2014
866 posts

re: Retirement account millionaires rise at Fidelity
What’s really sad is the average balance by age bracket in this article.
401k balance by age


Uhtred
LSU Fan
Bebbanburg
Member since Sep 2018
152 posts

re: Retirement account millionaires rise at Fidelity
quote:

What’s really sad is the average balance by age bracket in this article.
401k balance by age
wow. that is really sad.

We can do a much better job of teaching financial literacy earlier on.


lynxcat
Rutgers Fan
Member since Jan 2008
20564 posts

re: Retirement account millionaires rise at Fidelity
Teaching financial literacy is clearly a gap but it can also be overplayed a bit. Structurally, managing finances isn’t easy and the average individual will always struggle to grasp how the concepts work together. There is an intelligence gap as well as as education gap. I do not know which is the greater contributor but at least the education gap is addressable.


hungryone
LSU Fan
river parishes
Member since Sep 2010
9711 posts

re: Retirement account millionaires rise at Fidelity
quote:

eaching financial literacy is clearly a gap but it can also be overplayed a bit. Structurally, managing finances isn’t easy and the average individual will always struggle to grasp how the concepts work together. There is an intelligence gap as well as as education gap. I do not know which is the greater contributor but at least the education gap is addressable.

C'mon, people, it's not just education. It's earning power. How is someone who earns 36K a year supposed to save significant sums of money while also raising children? Understanding how to save is not the obstacle for working class poor people: affording to save is.

Reminder: the AVERAGE household income in Louisiana is $46,000. It's been the same for the past decade. That's fully $15,000 a year LESS than the average household income for the country at large.

Some people are poor. Too poor to have saved $175,000 for retirement by the time they're 50. Poor people often have poor extended families, who help each other through tough times often at the expense of saving for themselves. (cousin's divorce, uncle's bankruptcy, parent's major medical disaster, etc)


hedgediver
LSU Fan
LSU
Member since Sep 2004
1864 posts

re: Retirement account millionaires rise at Fidelity
If that poor person in your example contributes 4% of their pay and gets a 3% employer match for a 30 year period with a 5% return, they would hit the $175,000 you mentioned.

People need to understand they need to start saving whatever little amount that they can early, because compounding works miracles over time.


LSU0358
LSU Fan
Member since Jan 2005
6840 posts
 Online 

re: Retirement account millionaires rise at Fidelity
Wow, I feel way behind and I'm 5 times above the average for my age level.


Shepherd88
Member since Dec 2013
2720 posts

re: Retirement account millionaires rise at Fidelity
Maybe you need to read “the millionaire next door.”

You don’t become a millionaire by making a whole bunch of money, you become a millionaire by making sacrifices to save.


hungryone
LSU Fan
river parishes
Member since Sep 2010
9711 posts

re: Retirement account millionaires rise at Fidelity
quote:

If that poor person in your example contributes 4% of their pay and gets a 3% employer match for a 30 year period with a 5% return, they would hit the $175,000 you mentioned.


Find me a hotel chambermaid, or a waiter or line cook or fast food employee with a 401K. Find me any damn body who works in retail or hospitality with an employer supported savings plan. (WalMart apparently will match up to 6%, but the investment options are allegedly quite poor, with lots of fees.)

Yes, I agree, people should save & realize the power of compound interest, beginning at a young age. BUT, you are living in LaLa Land if you think the bulk of lower wage jobs in Louisiana offer any sort of employer match to savings.
This post was edited on 8/21 at 2:58 pm


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Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
31307 posts

re: Retirement account millionaires rise at Fidelity
quote:

Presumably there’s bleed over between the two populations.



Minimal at best, for a bunch of reasons


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NC_Tigah
LSU Fan
Carolinas
Member since Sep 2003
94461 posts

re: Retirement account millionaires rise at Fidelity
quote:

I’m actually shocked the numbers are so low. Only 196,000 people have over $1MM in their 401k and only 179,000 have over $1MM in their IRA.
I am too.
Fidelity claims 30M retirement accounts.
Around 1% of those > $1M?




hedgediver
LSU Fan
LSU
Member since Sep 2004
1864 posts

re: Retirement account millionaires rise at Fidelity
Maybe that is because the bulk of lower wage jobs you mentioned were not meant to be full time jobs. If you are 30+ and still a fast food cook you need to re-evaluate your priorities.

I see people often with a GED who go on with mechanical/oilfield service/etc type jobs that have the ability to work hard and earn a good wage with nice benefits.


lsujro
LSU Fan
BR
Member since Jul 2007
3148 posts

re: Retirement account millionaires rise at Fidelity
quote:

Maybe that is because the bulk of lower wage jobs you mentioned were not meant to be full time jobs. If you are 30+ and still a fast food cook you need to re-evaluate your priorities.


this is such a disingenuous argument that gets thrown around like it's fact. a job is a job to most people. they work where they can make the most $ for the hours they can work. there are only so many oilfield jobs out there, and those jobs are boom or bust. also only so many people physically able to do that work. not to mention the oilfield baws i know aren't exactly socking their $ away

an ever expanding part of the economy is in service industry, and somebody has to do those jobs. it can't all be high school kids and part time workers. my old man worked in a factory his whole career. it gave me a comfortable life and set me up to move up the ladder. sadly, there are far fewer of those types of jobs available in this economy.


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lsu711
LSU Fan
Member since Sep 2003
9131 posts

re: Retirement account millionaires rise at Fidelity
How many have 1M in their 401K + IRAs?


NC_Tigah
LSU Fan
Carolinas
Member since Sep 2003
94461 posts

re: Retirement account millionaires rise at Fidelity
quote:

C'mon, people, it's not just education. It's earning power. How is someone who earns 36K a year supposed to save significant sums of money while also raising children?
That is tough sledding.
One could discuss issues foundational to that scenario . . . number of children, single parent household, purchasing choices, etc. But you're right. Raising a family while saving a pile of money on $36K/yr is hard.

Median family income in La is $$60,510 btw.


SloaneRanger
LSU Fan
Upper Hurstville
Member since Jan 2014
651 posts

re: Retirement account millionaires rise at Fidelity
quote:

How many have 1M in their 401K + IRAs?


Having $1MM in a pre-tax account does not equal having $1MM. The money is taxed as ordinary income upon withdrawal.


Dead Mike
LSU Fan
Cell Block 4
Member since Mar 2010
2956 posts

re: Retirement account millionaires rise at Fidelity
quote:

Maybe that is because the bulk of lower wage jobs you mentioned were not meant to be full time jobs. If you are 30+ and still a fast food cook you need to re-evaluate your priorities.

I see people often with a GED who go on with mechanical/oilfield service/etc type jobs that have the ability to work hard and earn a good wage with nice benefits.



I don't know about your area, but there seems to be an awful lot of apparently 30+ year old fast food, restaurant and hospitality employees at the places I frequent. If I had to guess, almost all of the gig economy Waitr/Uber/Lyft drivers I see around town are at least over 30. Maybe some of them lost those mechanical/oilfield service jobs in an industry downturn.
This post was edited on 8/21 at 5:33 pm


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Teddy Ruxpin
LSU Fan
TX
Member since Oct 2006
33580 posts

re: Retirement account millionaires rise at Fidelity
quote:

Median family income in La is $$60,510 btw.


Isn't that actually a worse stat that signifies just how big an underclass there is in LA?

Hear me out. Usually, it is preferred to use median income as a true gauge of where things lay as the high income folks pull averages up and give a false number on how well folks are doing as a group. In a lot of 401k examples, the median will be lower than the average because super savers/wealthy skew the average up hiding the true representation of savings across the group.

Here in this thread we have a 60k median and a 40k something average. Would seem to me there are some very poor people dragging down the average income in LA.
This post was edited on 8/21 at 6:23 pm


hungryone
LSU Fan
river parishes
Member since Sep 2010
9711 posts

re: Retirement account millionaires rise at Fidelity
Your average fine dining restaurant line cook in SE LA make $15/hr, and he works full time. Not fast food, not seasonal part time. No benefits, no 401k. No health insurance. And that’s in a much lauded cultural sector considered to be one of the key components of our tourism draw,

He is not an unskilled laborer, he’s just working in an industry that runs on thin margins and has little labor organization or industry incentive to treat people better. Think about your cook next you sit with a white napkin in your lap. Clearly you appreciate that sort of hand labor, but apparently that guy should find another line of work because he’s too old to be making so little money? As the kids today say, whatevs.

Many, many jobs in our economy are either no longer full time due to corporate cost cutting, or the FT jobs offer no benefits. The gig economy is hell on workers.


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