How far is the 401(k) account from the millionaire dream?

According to Fidelity’s latest report, over 544,000 participants in the global 401(k) plans have achieved the million-dollar milestone—accounting for 2.3% of total participants, with a 9.5% quarter-over-quarter growth. What does this indicate?坚持长期投资真的能带你走向财富。

The Secret Behind the Numbers

To accumulate $1 million in a 401(k) account, the key is:

Option A (Aggressive Approach): Invest $23,500 annually + $3,000 employer match, with an average annual return of 7%

• After 20 years: reach $1,086,000
• Total investment: $529,900
• Interest earned: $556,100 (returns far exceed the principal!)

Option B (Conservative Approach): Invest $500 monthly ($6,000 annually), with the same 7% return

• After 38 years: reach $1,035,000
• Total investment: $228,000
• Interest earned: $807,000

The Return Rate Is the Key Variable

With the same monthly investment of $500, but different return rates, the results vary greatly:

• 5% annual return → reach $1 million in 46 years
• 10% annual return → reach $1 million in 31 years
• For every 1% increase in return rate, you save 3-4 years

Core Advice

Instead of obsessing over how much to invest, focus on optimizing your investment portfolio. Choose the right asset allocation (index funds > individual stocks) and let compound interest work for you. Starting now, every monthly contribution helps you continue writing your million-dollar story.