🧠 TODAY’S TOP MOVE
Fidelity just revealed that the number of 401(k) millionaires jumped 16% last quarter. Nearly 600,000 accounts now hold $1M or more.
So what separates the millionaires from the rest? Not luck. Not timing. But the kind of saver you are.
👉 Source: MSN / Washington Post
🗞️ THE SIGNAL
Fidelity and other retirement giants say savers tend to fall into three camps:
Investor #1: The Panic Seller
Scared by downturns, they pull out at the worst time, lock in losses, and miss the rebound.Investor #2: The Market Timer
They cash out when it’s ugly, come back when it’s safe—but usually too late to catch the strongest gains.Investor #3: The Disciplined Investor
They keep contributing, stick to a plan, and ride out volatility. They use strategies like dollar-cost averaging and “bucketing” (short, mid, and long-term allocations).
The third group—the boring, steady, disciplined savers—are the ones filling Fidelity’s millionaire ranks.
📊 WHAT THIS MEANS FOR YOU
For 401(k) holders:
✅ Millionaire status usually comes from staying the course, not chasing shiny objects.
⚠️ But with alternatives entering the picture, discipline may need a new definition. If you add private equity, real estate, or crypto to your lineup, you’ll need the same patience—plus a higher tolerance for illiquidity and delayed valuations.
For advisors/fiduciaries:
✅ Classify your clients by saver type before they chase alternatives. A “panic seller” shouldn’t be holding private credit. A disciplined, long-term saver might be suited for a 5–10% alt sleeve.
⚠️ The saver “type test” may become as important as the risk tolerance questionnaire once alts are widely available.
⚖️ FIDUCIARY FOCUS
Behavioral risk matters: Who your client is under pressure may matter more than what their allocation is on paper.
Alts magnify habits: Illiquid, opaque investments are unforgiving to panic sellers.
Discipline is king: The same habits that made stock-and-bond millionaires will separate alt winners from alt casualties.
Translation: Alternatives don’t erase bad habits. They amplify them.
✅ THE BOTTOM LINE
Fidelity’s 401(k) millionaires aren’t stock-pickers or market timers. They’re savers who stayed steady for decades.
As alternatives enter the 401(k) system, that same discipline will be tested—because volatility, illiquidity, and fees make panicking even more costly.
⚖️ THE FINAL WORD
You don’t need to outsmart the market. You need to out-discipline it. And if you step into alts, your habits matter more than ever.
~ Brian
⚡ WHAT’S NEXT
Tomorrow we’ll explore how “alt-friendly” platforms are designing products for different saver types—and whether they’re actually built for disciplined investors, or just marketing gloss.
📈 Forward this to a friend who thinks millionaire 401(k)s are about luck.
They’ll learn it’s about habits—and soon, allocation choices.