Sunday, February 9, 2020

So you want to be a 401(k) millionaire? Here's how to do it, according to Fidelity

August 30, 2018


Here is the link.

Values are rising
Retirement funds (year-over-year)
  • Average 401(k): $104,000 (up 6%)
  • Average IRA: $106,900 (up 9%)
What's in your 401(K)? Vanguard, average retirement account
Ages 65+
  • Average: $209,984
  • Median: $64,811
1:57
157,000 people are super saver, based on Fidelity, with over a  million dollar

Tip #1
Be aggressive

  • Invest heavily in equities
  • Be heavier equities when younger, roll out over time
  • Gauge age and risk tolerance

Tip #2  (3:22/ 6:04)
Know your end goal

  • Always take a longer-term view
  • Have an eye on growth
  • Don't react to market swings
Tip #3
Examine allocations
  • At minimum once a year
  • Quarterly when near retirement
  • Re-examine when life changes take place

Jeanne Thompson - Fidelity

Target fund - when you are 50, still 10 year to retire, 85% equities, 15% bond

Marathon, a sprint,

60% market,

Allocation once a year. Asset class

Less than 1% - move to cash, but most of them stay on the course

Those over 10 years,
$73,000 -> $200,000 approach $300,000

Do not react too quickly.

Actionable Items


I like to evaluate myself based on my USA 401 K and IRA, my return from 2009 to 2020 is less than 2% annual return. All of those mistakes can be traced back in 2001, I sold VIGRX in 2001 with 30% loss; I did not learn that I have to read at least one investment book related to growth fund, and understand the concepts like index fund return. Later in 2009, since my Canada immigration application was denied in December 2008, I sold all equities in my 401 K and also IRA. I made mistake to move to IRA CD with Amtrust bank.

I got depressed in 2009 since I learned that I may be worth nothing from 1996 to 2009, the home  I purchased does not worth too much, I had 10 year old paid SUV but gas price was $5.00/ gallon, and I had less than $28,000 dollar US retirement fund, and the bank gave me $65,000 home equity line starting from 2006.

I have to examine how to stay healthy, wealthy; Never purchase any brand new car, only gas-efficient car instead.




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