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Fidelity reported that only 168,000 accounts or 1% of their 16 million 401k accounts had $1 million or more in them which is a shockingly low number...
In addition, I heard this comment from someone here in Southern California the other day "Oh, these days being a millionaire is very common"... since the money is not in the portfolio (if 1% which is a ridiculously low fraction have $1+ million in investments) where else are these millionaire assets? In Real Estate??
The other possibility is that these millionaires are in taxable but I wouldn't think the number of $1+ million portfolios would outnumber the 401k figure since just through anecdotal evidence there aren't that many that even HAVE taxable accounts let alone have anything in it.
Trying to establish the true picture of how common millionaire status is in the US... and more importantly which asset class that wealth resides.
Fidelity reported that only 168,000 accounts or 1% of their 16 million 401k accounts had $1 million or more in them which is a shockingly low number...
In addition, I heard this comment from someone here in Southern California the other day "Oh, these days being a millionaire is very common"... since the money is not in the portfolio (if 1% which is a ridiculously low fraction have $1+ million in investments) where else are these millionaire assets? In Real Estate??
The other possibility is that these millionaires are in taxable but I wouldn't think the number of $1+ million portfolios would outnumber the 401k figure since just through anecdotal evidence there aren't that many that even HAVE taxable accounts let alone have anything in it.
Trying to establish the true picture of how common millionaire status is in the US... and more importantly which asset class that wealth resides.
People love to talk as if everyone's a millionaire or that $1M isn't a significant amount. While there's a grain of truth to that, especially in expensive areas, it's mostly BS. Sure, maybe the house is worth $1M, but lots of people have jumbo mortgages on those $1M houses to pay off.
In short, even in high income metro areas, most people are broke or nearly so.
Not many people get to a million - I sure won't - but you don't need a million to retire if you live in a lower cost area and you've kept your costs down.
I have a Fidelity account. It is no where near $1 million. Of course, I also own some stock, have some Prudential mutual funds and have most of my portfolio with TIAA.
If Fidelity is only looking at 401k accounts, how about those people who have retired and rolled their 401ks into IRAs? Our investments are in a combination of Rollover IRAs, Roth IRAs and taxable brokerage accounts. Nothing left in the 401ks
If Fidelity is only looking at 401k accounts, how about those people who have retired and rolled their 401ks into IRAs? Our investments are in a combination of Rollover IRAs, Roth IRAs and taxable brokerage accounts. Nothing left in the 401ks
Per the article it's all retirement accounts including IRAs. Can't seem to find any data on non-retirement accounts.
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