IRA and 401(k) millionaires are staging a comeback, with the number of seven-figure retirement accounts at Fidelity Investments inching back toward a 2021 high.
The tally of such accounts rose by more than 12% in the second quarter to 727,104, according to an analysis released by Fidelity Thursday. That’s the highest since the first three months of 2022 and within striking distance of a record.
This year’s double-digit gains in the benchmark S&P 500 have helped swell retirement balances for a third quarter in a row following a plunge that tracked the stock market last year.
“The average tenure of our millionaire 401(k) savers is 26 years, showing that staying in-plan and continuing to invest over the long term can pay huge dividends over time, particularly during positive turns in the market,” said Michael Shamrell, vice president of thought leadership at Fidelity Workplace Investing.
And while younger savers haven’t had decades in the market to amass large balances, Fidelity data show that many borrowers used the federal student loan payment pause to funnel money into retirement accounts. Close to three-quarters of student loan borrowers put at least 5% of their pretax salaries into 401(k)s during the period when payments were paused. That compares with 63% before the pause.
The average 401(k) balance at Fidelity is $112,400
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
