As you would imagine, with the markets hitting new highs, the number of paper millionaires has also subsequently hit a new high. According to Fidelity Investments, the number of 401(k) accounts with at least $1 million hit a new record.
As of June 30, there are now 196,000 investors with at least $1 million in their 401(k) accounts, surpassing the prior record of 187,400 reached in Q3 2018. The average 401(k) account balance stands at $106,000, falling just short of the current record high of $106,500. The average employee contribution rate hit a record high 8.8%, up 1% from a decade ago.
IRAs are loving this bull market as well. The number of IRA paper millionaires now stands at 179,700, surpassing the prior record of 170,400. The average IRA account balance stands at $110,400, also falling just short of the current record high of $111,000 from Q3 2018.
This doesn't mean you should get too excited and rush to retire after reading this, however, as Charles Schwab recently found the average participant surveyed thinks they need $1.7 million to retire. So if you need more than $1 million for retirement, you better pray Jerome Powell cuts rates to 0% and Trump gets his QE to keep this bull market going for a couple more years.