The average 401(k) holder’s balance was 30% higher in 2007 than last year , says a survey of Fidelity’s 10 million 401(k) accounts. The mainstream media are heralding this as great news. But is it? Depends on whether you think you can retire on 401(k) proceeds or not. The average balance of 401(k) savers who have contributed for at least one year was only $32,000. The “median” for folks who have been saving for at least five years? $59,000. That may be great, if you plan on eating ramen and living in a trailer during your retirement. The Fidelity study found that one in three eligible baby boomers -- those “on deck” to retire -- are not even participating in 401(k) programs. Also, 13% of all of Fidelity’s 401(k)s have not one stock in their portfolio. Not one.
Perhaps the general public is savvier about their investment planning than we give them credit for. Perhaps they aren’t thinking about the future at all.
Perhaps the general public is savvier about their investment planning than we give them credit for. Perhaps they aren’t thinking about the future at all.
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