We recently completely paid-off our 401-k loan! We got the loan in Yr 2016; it had a 5-year term; and an interest rate of 4.5% (which was paid back into the account). What a load off of our financial backs 👍❤
The main reason for the loan was a trip to Europe to attend our oldest son's wedding. We went on a trip to Paris afterwards, and paid for our other son's college tuition. Of course, we also gave a cash gift to the Bride and Groom. So, $30K later, the loan is finally paid in full --done and gone, whew! We intend it to be our very last 401-k loan ever, Lord willing.
Number of 401(k), IRA millionaires continues to surge - by Matthew Rocco
The number of “401(k) millionaires” surged in the second quarter, as broad gains in the stock market lifted the value of Americans’ retirement plans.
Fidelity Investments said Thursday the number of people with at least $1 million in their 401(k) plan climbed to 168,000 by the end of June, up 41 percent compared to the same quarter in 2017. The company also noted that the percentage of 401(k) millionaires who are women rose to 21 percent.
source: Fidelity Investments
The number of IRA millionaires also grew, hitting 156,000.
Overall, retirement savings have improved among 401(k) and IRA holders following a dip in the first quarter.
The average 401(k) balance nearly hit an all-time high. Fidelity said the average balance was $104,000, up 6 percent from $97,700 in first quarter last year and just shy of the current record of $104,300. The average IRA balance increased nearly 7 percent year-over-year to $106,900. Balances in 403(b) accounts also posted gains compared to last year.
“The stock market’s performance over the past several years has definitely helped retirement savers, but now would good time for investors to take a moment and make sure they are doing their part to meet their retirement goals,” Kevin Barry, president of workplace investing at Fidelity, said in a news release.
D Ramsey's advice on consistent,
long-term savings
In the past year, there has been a 50% increase of 401(k) balances of $1 million or more, perFidelity Investments.
We are thisClose. What has kept us back? Repeatedly dipping into our retirement funds to pay for our children's college education (whatever scholarships or financial aid don't cover) & their other high-ticket outlays.
Has this financial regression been worth it? YES. They're "educated' according to the world's standards and have begun their adult lives on the right footing. We are beyond proud of each of them and their accomplishments.
NO. The $$ return on our "investment" has been zero (thru non-investment) or pennies (or less) on the dollar via repayment. We are partly to blame. We walked on eggshells regarding paying us back, and never put it in writing nor made it legal. We didn't push it because it's the duty of us parents to provide for children right up to and including college, right? Riiiiiiight.
But if any widow have children or nephews, let them learn first to shew piety at home, and to requite their parents: for that is good and acceptable before God. (1 Timothy 5:4)
