7-Figure Success Stories

Are YOU a 401(K) millionaire? Savers with seven-figures in their retirement accounts swelled by 100,000 in 2023 – and one woman tells how she is on track despite starting on $22k a year

The number of savers with $1 million in their retirement accounts ballooned by around 100,000 people in 2023 – thanks to a booming stock market

Some 349,000 401(K) owners and 339,000 workers with an Individual Retirement Accounts (IRA) ended the year with seven-figure balances, according to Fidelity Investments.

While it marks a slight decline from earlier in the year, the number is still well above 2022 levels when the figures were 299,000 and 280,000 respectively.

Retirement accounts have benefitted from a strong stock market which saw the S&P 500 end the year 24 percent up compared to 2022.

The number of savers with $1 million in their retirement accounts ballooned by around 100,000 people in 2023 as they were bolstered by a booming stock market

The number of savers with $1 million in their retirement accounts ballooned by around 100,000 people in 2023 as they were bolstered by a booming stock market

A 401(K) is an employer-sponsored plan which workers often contribute to directly from their paycheck. A worker’s contributions are often matched by the employer.

By comparison IRAs can be opened by anybody including freelance workers.  

Those that have managed to stash away a comfortable nest egg insist it is not as difficult as it seems.

Caroline Eby told DailyMail.com that she is edging closer to the $1 million mark – despite never earning more than $80,000 in her life.

The finance worker, from Washington D.C., said: ‘I started saving at age 25 when I was making $22,000 a year in manufacturing. 

‘Each year, I upped my contribution by 2 percent if I could afford it. I maxed my contribution somewhere around 12 percent.’

She added: ‘I’ve never married and have always fully supported myself. I’m so happy and proud of myself for the sacrifices I made 30 years ago. 

‘Like everyone told me, slow and steady wins the race.’ 

Eby had $990,000 in her account two years ago but then lost $100,000 – something she blamed on the wider economy. Now, her account is ‘on its way back up,’ she said. 

It comes after experts laid bare just how much workers of each age group would need to save into their 401(K) to reach $1 million by the time they retire.

Caroline Eby, 57, pictured, told DailyMail.com that she is edging closer to the $1 million mark - despite never earning more than $80,000 in her life

Caroline Eby, 57, pictured, told DailyMail.com that she is edging closer to the $1 million mark – despite never earning more than $80,000 in her life

It comes after experts broke down the amount needed to stash away each month to generate a comfortable nest egg - depending at what age you start

It comes after experts broke down the amount needed to stash away each month to generate a comfortable nest egg – depending at what age you start

And it may not be as arduous as it seems. According to personal finance The Motley Fool, a 22-year-old would need to put away $325 per month throughout their career to be able to retire with $1.01 million by the time they hit 62.

If a worker only started saving into their 401(K) at 27, they would need to put away $500 per month to reach $1.03 million by the same age.

The figure rises to $750, $1,200 and $1,900 for a 32-year-old, 37-year-old and 42-year-old respectively.

The analysis assumes the investments generate an 8 percent average annual return – slightly below the 10 percent average rate of return generated from the stock market.

According to The Motley Fool, a common investing rule of thumb is to subtract your age from 110. The result is the percentage of your portfolio you should then allocate to stocks.

For example, if you are 35 years old, approximately 75 percent of your portfolio should be made up of stocks while 25 percent should be reserved for bonds and other conservative investments. The thinking behind this theory is that younger investors can take greater risks.


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