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☆ 401(k) millionaire ranks grew 11.5% in 2023. They are 'poster children for staying the course,’ expert says
▼ + stars: | 2024-02-27 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

In this article FIS Follow your favorite stocks CREATE FREE ACCOUNTwatch nowIn a year that defied most economists' expectations, retirement savers reaped the benefits. The average 401(k) balance ended 2023 up 14% from a year earlier to $118,600, Fidelity found. "This past year ended on a high note for retirement savers," said Sharon Brovelli, president of workplace investing at Fidelity Investments. Overall, more than one third of retirement savers increased their retirement savings contributions, Fidelity found. The average 401(k) contribution rate, including employer and employee contributions, now stands at 13.9%, just below Fidelity's suggested savings rate of 15%.

Persons: Sharon Brovelli, Mike Shamrell, Shamrell, Fidelity Organizations: Fidelity Investments, Fidelity, Nasdaq, Dow Jones

☆ The S&P 500 hit another all-time high—but don't switch up your retirement saving strategy, says CFP
▼ + stars: | 2024-01-26 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

Your 401(k) may look a little better than usual as tech stocks pushed the S&P 500 index to another all-time high as of market close on Thursday. But now's not the time to change up your retirement saving strategy. Your retirement saving strategy should be proactive rather than reactive. Since the stock market is, by nature, unpredictable, it isn't wise to base your long-term investment strategy on how the market is performing in the short term. "You can't predict exactly when that bull market becomes a bear market and vice versa," Shamrell says.

Persons: now's, You've, Douglas Boneparth, Mike Shamrell, Shamrell Organizations: Bone, CNBC

☆ Don't make these common 401(k) mistakes. With one, many 'aren't even aware' they're missing out, expert says
▼ + stars: | 2023-11-30 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

Even the majority of those that do contribute say they are not on track with their yearly 401(k) savings to retire comfortably. Here are three common mistakes workers often make when it comes to their 401(k) plans. Most 401(k) plans — 98% — make contributions to workers' retirement savings, according to the Plan Sponsor Council of America. And yet, roughly 22% of plan participants are not getting the full match, according to data from Fidelity, the nation's largest 401(k) plan provider. To that end, couples with two employer savings plans could benefit from prioritizing the more generous employer's 401(k) matching funds.

Persons: Joe Buhrmann, Mike Shamrell, Shamrell, Fidelity's, Buhrmann Organizations: CNBC, of America, Fidelity, Finance, IRS, IRAs, Workers

☆ 401(k) balances are down, and 'last resort' hardship withdrawals are up
▼ + stars: | 2023-11-28 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch now'Last resort' 401(k) hardship withdrawals riseIn extreme circumstances, savers can take a hardship distribution without incurring a 10% early withdrawal fee if there is evidence the money is being used to cover a qualified hardship, such as medical expenses, loss due to natural disasters or to buy a primary residence or prevent eviction or foreclosure. The share of participants who tap such hardship withdrawals is on the rise, according to reports by Fidelity Investments and Bank of America — largely to avoid a foreclosure or eviction or to cover medical expenses, Fidelity found. Bank of America's recent participant pulse report showed that the number of 401(k) plan participants taking hardship withdrawals was up 13% from the second quarter and 27% compared to the first quarter of the year — with the average withdrawal amount just over $5,000. Still, hardship withdrawals should be "your choice of last resort," cautioned Joe Buhrmann, senior financial planning consultant at eMoney Advisor. "'Leakage' from plan accounts through 401(k) loans and withdrawals can have outsized effects on retirement readiness," said Sharon Carson, retirement strategist at J.P. Morgan Asset Management.

Persons: Mike Shamrell, Joe Buhrmann, you'll, Sharon Carson Organizations: Fidelity Investments, Bank of America, Fidelity, Bank of, Morgan Asset Management

☆ 37% of baby boomers have more stock exposure than they should, Fidelity says. These 4 tips can help
▼ + stars: | 2023-07-29 | by ( Lorie Konish | ) www.cnbc.com time to read: +6 min

Simon Potter | Getty ImagesWhen it comes to stocks, investors face a big question: How much exposure is enough? At Fidelity, the allocations to equities in retirement funds are about 10% higher than where they should be, Shamrell said. watch nowSome of those investors with excess stock exposure may simply need to rebalance after recent market highs, Shamrell said. Experts say having the right mix of equities can go a long way toward helping retirees meet their financial goals. Importantly, a client's personal circumstances drive these goals, McClanahan noted.

Persons: Simon Potter, Mike Shamrell, boomers —, Shamrell, Carolyn McClanahan, McClanahan, Carl Smith, Sri Reddy Organizations: Getty, Fidelity Workplace, Security, Fidelity, Planning Partners, CNBC's, Principal Financial, iStock Locations: Jacksonville , Florida

☆ Why this could be the 'best time' to contribute to a retirement plan, according to an advisor
▼ + stars: | 2023-03-16 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

said Louis Barajas, CEO of International Private Wealth Advisors, a certified financial planner and member of CNBC's Advisor Council. In fact, "this is the best time to continue to contribute." "Everybody wants to get out when there's uncertainty," Barajas said. 'Everyone is feeling pressure financially'After a tumultuous stretch, many older Americans are concerned about their retirement security. "We've had almost 12 years of a boom market, all they've seen is markets go up," Barajas said.

☆ Retirement savers can position for a ‘comeback’ after 2022 losses, says advisor. Here’s how
▼ + stars: | 2023-03-07 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

"It's important to remember that as long as you haven't sold those investments, you haven't realized the loss, either, and there is a potential for a comeback." It's reasonable to expect that portfolios will continue to improve in the next year, or even by year-end, she said. More from Personal Finance:Why Social Security retirement age, payroll tax may changeExperts argue Social Security retirement age shouldn't pass 67Return on waiting to claim Social Security is 'huge' Even if one sector of the financial markets performed well, you can't assume that will continue. After a tumultuous year, many older Americans are concerned about their retirement security. Nearly half, or 48%, of retired Americans believe they'll outlive their savings, a separate report by Clever Real Estate found.

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