{"id":339438,"date":"2025-12-09T18:19:10","date_gmt":"2025-12-09T18:19:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/339438\/"},"modified":"2025-12-09T18:19:10","modified_gmt":"2025-12-09T18:19:10","slug":"there-are-now-more-401k-millionaires-than-ever","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/339438\/","title":{"rendered":"There Are Now More 401(k) Millionaires Than Ever"},"content":{"rendered":"<p>More and more clients are starting to feel like a million bucks. Literally.<\/p>\n<p>The number of 401(k) millionaires at Fidelity totaled 654,000 as of the third quarter, the highest level in records going back to the early 2000s. The figures point to <a href=\"https:\/\/www.cerulli.com\/press-releases\/gen-z-and-millennials-expect-to-lean-on-401ks-over-social-security-in-retirement\" rel=\"nofollow noopener\" target=\"_blank\">increased usage of 401(ks)<\/a> among working professionals as the retirement planning vehicle of choice, replacing the private pension, as well as the role high employer matching rates can play. But for advisors, larger 401(k) balances also means their clients have greater exposure to the stock market.<\/p>\n<p>\u201cMost advisors are not thinking about risk enough,\u201d said Stephen Dissette, an advisor with Horter Investment Management. \u201cYou want to protect your wealth from market risk because [with] one big market downturn, all of a sudden that seven-figure 401(k) becomes a 201(k).\u201d<\/p>\n<p>Who Wants to Be a Millionaire?<\/p>\n<p>Several factors have facilitated the rise of 401(k) millionaires, including high employer matching contributions, strong market growth and the <a href=\"https:\/\/www.investopedia.com\/social-security-celebrates-90-years-this-month-yet-trust-fund-faces-potential-collapse-within-a-decade-11789906\" rel=\"nofollow noopener\" target=\"_blank\">steady decline of Social Security<\/a> as a reliable source of retirement income. The 401(k) is now a critical part of any client\u2019s portfolio, said Matt Mormino, managing director of Brighton Jones\u2019s retirement planning service. \u201cI talk to 401(k) populations quite often, and I tell them it\u2019s the \u2018get rich slowly\u2019 scheme,\u201d he said. \u201cNot just from an investment standpoint, but from a tax standpoint, too.\u201d More 401(k) providers are expanding their individual services as part of their overall offering, he added, with a push to roll over assets \u2014\u00a0once someone is in retirement \u2014 to a platform\u2019s own advisory solutions. \u201cI expect we\u2019ll continue to see a lot of that because there is just a tremendous amount of wealth concentrated in these plans,\u201d Mormino said.<\/p>\n<p>The Fidelity report also found:<\/p>\n<p>The average 401(k) balance was $144,400, up 9% from the third quarter of last year.<\/p>\n<p>The average contribution rate remained consistent at 14.2% for the second quarter in a row, with an average employee contribution of 9.5%.<\/p>\n<p>It\u2019s part of an advisor\u2019s job to make sure their clients are actually living off of the money they\u2019ve saved, Dissette said. This is because many clients, having saved up a robust nest egg through the years, are hesitant when it comes to actually spending the money. \u201c[Advisors are] not putting together plans for people, they\u2019re not rolling over these 401(k)s into IRAs enough. They\u2019re not doing raw conversions,\u201d he added. \u201cThere are a lot of issues out there.\u201d<\/p>\n<p class=\"is-style-has-asterisk\">Capture the Dollar. So how should advisors secure those sweet, sweet 401(k) bucks? Mormino said thinking about it as early as possible is key. \u201cEven if you\u2019re not managing those dollars today, by adding value to your clients and \u2026 helping them think about it, when it does come time for those dollars to come out of the 401(k), it\u2019s not going to go anywhere else.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"More and more clients are starting to feel like a million bucks. Literally. The number of 401(k) millionaires&hellip;\n","protected":false},"author":2,"featured_media":339439,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[5097,28,16065,147,530,1666],"class_list":["post-339438","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-401k","tag-business","tag-fidelity","tag-personal-finance","tag-personalfinance","tag-retirement"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/339438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=339438"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/339438\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/339439"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=339438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=339438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=339438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}