If Your 401(k) Could Talk, It Would Say “You’ve Come A Long Way, Baby”

It’s a milestone symbolizing how far women have climbed up the professional career ladder.

The share of female 401(k) millionaires, or women who have amassed sums of $1 million or more in their retirement plans has doubled, observed Tara Siegel Bernard, writing in the New York Times just after Thanksgiving.

In research conducted by Fidelity Investments, about one-fifth of all million-dollar 401(k)s held with the firm now belong to women. A decade ago, that figure was only half that amount.

Not only are women advancing in their chosen professions, but they are earning more, and most importantly, they are saving and investing more aggressively as they seek to address the challenge of making their money fund a longer and more expensive retirement.

What does it take to accumulate over a million dollars in your 401(k)? 

Surprisingly, not that much.

The key characteristic these millionaire women have in common is a willingness to save and watch their accounts build.

In fact, the biggest investing mistake women make according to Sallie Krawcheck, former Wall Street executive and wealth management chief at Merrill Lynch/Bank of America, is not starting early enough and making savings and investing a firm habit.

The Takeaway: Many of our women clients have built million-dollar retirement accounts or are on track to do so. All it takes is a willingness to save and a good investment strategy. Ask us!

 

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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