There are more 401(k) millionaires today than ever before. Approximately 497,00 401(k) plan participants currently have balances of at least $1 million in their accounts, according to new data from Fidelity.
UBS Financial Advisor Tracy Burns has joined Wealth! We’ll detail a few steps that retirement savers can take to become millionaires by the time they’re ready to tap into a 401(k) plan.
“It’s a lot like dieting Monday through Friday, eating pizza and chips on the weekend, and wondering why you’re not losing weight. It’s the same thing. Slow and steady wins the race. ” explains Burns.
She encourages retirement savers not to “set it and forget it” and explains the importance of revisiting retirement accounts for rebalancing and diversification. She warns, “What worked for you when you started 20 years ago may not work for you today.”
Burns also points out that it’s equally important to increase contributions to the account as your salary increases. Although it may be tempting, she strongly advises against withdrawing funds before retirement.
Watch the video above for more tips from Burns.
For more expert insights and the latest market trends, click here to watch the full episode of Wealth.
This post was written by Melanie Leal
