Friday, October 25, 2019

US 401K Stock Purchases


50% of US employees are saving for retirement through their 401k plans. So how much money is invested in US public companies every year?  There are roughly 160 million jobs and the US per capita GDP is $62,606. So if 80 million 401K participants are investing $4150 per year, the total dollars going to companies is $332 billion per year.

The average 401(k) balance rose 8 percent or about $8,100 to $103,700 in the first quarter of the year. The improvement in the stock market helped savers eke out a roughly 1 percent gain compared with the average balance in Q1 2018, according to Fidelity’s data.

The average 401(k) employee contribution amount reached $2,370 in Q1, a 15 percent increase from the year prior.  And the average employer contribution, or company match, reached $1,780, a 6 percent increase, according to Fidelity.

Together, companies and their workers boosted the average total savings rate to an all-time high of 13.5 percent.

The data from Fidelity is based on the $7.4 trillion assets the financial services institution had under administration as of March 31 and the more than 30 million people who use the company for investing.

Average Retirement Savings Balances
Ages    401K        IRA                
20-29: $11,800     $8,000
30-39: $42,400     $24,400 40-49: $102,700   $63,900 50-59: $174,100   $123,700 60-69: $195,500   $225,100 70+:    $182,100   $274,200



US citizens have an equal amount invested in home equity. We are holding an additional $6 trillion in home equity as the ultimate backstop for our retirement. Home equity is the safest place to put family assets.

Norb Leahy, Dunwoody GA Tea Party Leader

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