Fidelity Reports Record 401(k) Millionaires and Average Holdings Amid Market Recovery

Record 401(k) Millionaires

• 📈 Fidelity reports a record number of 401(k) millionaires in the U.S., reaching 595,000 in the second quarter.
• 💰 The average 401(k) balance also hit an all-time high of $137,000, an 8% increase from the previous quarter.

Investor Behavior Amidst Market Fluctuations

• 📊 Despite market volatility, 95% of 401(k) investors made no changes to their portfolios.
• ⚠️ This inaction can lead to "stuck money" if investors are not in appropriate funds like target-date funds.
• 💡 Investors thankfully did not panic and maintained steady savings rates close to 15%.

Understanding "Stuck Money"

• 🧩 "Stuck money" refers to investments that have not been properly managed or updated, potentially remaining in outdated options.
• 🏦 This can also include forgotten 401(k) accounts from previous employers that are left untouched.
• 🎯 It's crucial to remember the long-term goal of 401(k) savings and ensure investments align with those objectives.