
Season 1 Episode 20 Who Wants to be a Millionaire??
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Eighty million American workers participate in their companies 401(k) plan. Collectively, they have $14 trillion dollars invested in these plans. They make their own investment decisions by selecting mutual funds from a list prepared by an investment professional who is compensated by the mutual funds they place on the list. Last year, American workers paid $275 billion dollars in fees to have Wall Street manage their mutual funds. Over the course of the next decade this figure will exceed $3 trillion dollars.
There are those 401(k) participants who choose funds with minimal fees and superior performance. Others choose funds with high fees and subpar performance. According to Bureau of Labor Statistics, the average 401(k) balance is $123,465. There are several million whose balance exceeds $1 million.
In this episode I will explore how the 401(k) program is structured, and what it takes to become a member of the elite $1m 401(k) club.
SPOILER ALERT – this is not a once in a life time stock pick. Becoming a 401(k) millionaire require discipline and patience.
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