According to Fidelity Investments, for the 401(k) plans that it serves as record-keeper on, there are 544,000 people with at least $1 million in their account, a 9.5% increase from last year. This growth highlights how regular contributions, coupled with a rising stock market, have significantly increased the number of 401(k) millionaires, showing the power of consistent saving and employer matching contributions.
A Redditor on the r/MiddleClassFinance subreddit finds himself to be one of these 401(k) millionaires. But surprisingly, he's not happy. It's not because he hasn't saved enough, but rather that he is essentially living paycheck-to-paycheck. He writes, 'It just feels so weird like I have enough to go buy a lake house, but still can't go out to eat very often.' This illustrates the paradox of being asset rich yet cash poor.
The 401(k) program is one of the best things the government has created, even if there were some unintended consequences. For many Americans, participating in a 401(k) plan can lead to unexpectedly high balances by retirement, yet it also contributes to common financial paradoxes where individuals might feel financially constrained despite substantial assets.
Collection
[
|
...
]