You Might Not Become the Millionaire You Think You Will
In theory, a 401(k) is an easy path to becoming a millionaire. Between the tax advantages granted to contributions and the relatively high contribution cap, workers who contribute regularly and start young enough can easily reach the $1 million threshold through prudent investing.
The problem is that reality is not keeping up with the dream. As of 2019, the average 401(k) balance was $103,700, according to Fidelity. Although that’s a sizeable amount, it’s a far cry from the $1 million or more many financial planners say you’ll need to live a reasonably comfortable retirement.
