Posted by (American Life Insurance Insurance Guide Network 08/17/2022 News)According to recent data from Fidelity, the number of people with 401K retirement account balances falling below $100 million in this year's stock market downturn has increased by 2022% after the second quarter of 2 - which means that more than one in four people, Leaving the ranks of "millionaires" due to account losses.
$100 million + retirement savings: 29
The number of IRA millionaires also fell sharply in this market round, with 17% of retirement accounts falling below $100 million.
The number of people with a balance of $401 million in savings in Fidelity's 100(k) retirement accounts fell 29% to 294,000 in the second quarter, the company's data showed.During the same period, the U.S. S&P 500 posted its lowest close of the year on June 6, when the index fell about 16% from its January 1 peak.
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What is the average American's retirement savings?
According to a survey of U.S. retirement asset accounts, the average retirement savings by age group is as follows:
- 32 – 37 years old:Average retirement account balance: $32,6021
- 38 – 43 years old:Average retirement account balance: $61,9331
- 44 – 49 years old:Average retirement account balance: $113,3701
- 50 – 55 years old:Average retirement account balance: $133,6261
The overall average 6(k) retirement account balance as of June 30 was $401, down nearly 103,800% from a year earlier and down nearly 20% from the first quarter of 2022.
Fixed-rate asset insurance has become a sweet pastry in the market
Big losses in retirement savings, often because most people believe that money can always be made in the stock market, ignoring Buffett's repeated emphasis that "never lose money"Basic Principles.
In the volatile market environment in 2022,"Don't lose money", has become the primary goal of all savers.
Fixed-rate insurance products, which not only provide protection against falling capital, but also provide the option of tax-free Rollover of some or all of the funds from 401k accounts and IRA accounts, have become an important part of household asset portfolios in 2022.
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This type of insurance has traditionally provided asset protection strategies for the S&P 500 (S&P 500), Dow Jones Industrial Index and Nasdaq 100 Index, guaranteeing funds in policy accounts, and giving 0% trust in a plummeting market environment. Bottom income protection, as shown in the figure belowFLOOR strategy.
In addition, some insurance groups with "asset management" as their core business provide more low-volatility quantitative strategies and unique asset protection patent mechanisms.
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New option: exclude the possibility of a "zero" gain
To "asset Management"The well-known top insurance company not only provides a 0% FLOOR minimum guarantee for the assets in the policy account, but also provides"Index return lock-in"The enhanced function of , or will help policyholders in the volatile market environment, by actively controlling the policy account, to lock in the income in the short-term market rebound, thus eliminating the possibility of "zero" asset income.
(©️Allianz Insurance Index Yield Locked Public Consumer M-7391 Manual)
Such asset protection insurance brands that can achieve active management have correspondingly stricter screening and access mechanisms for investors and policyholder families.
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Quick Facts: What is a 401k Retirement Plan?
The 401k retirement account, also known as the 401k plan, started in the early 20s and is a pension insurance account system established by employees and employers jointly paying contributions.
Fidelity, known as Fidelity Investment Group in Chinese, is the largest retirement account service provider in the United States, managing more than 3500 million individual and family 401(k), IRA, and 403(b) retirement accounts in the United States. (End of full text)
(>>>Related reading:Millions of retirement accounts hit a new high, how much should I save for my age?)
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appendix
1 Economic Policy Institute: “The State of American Retirement Savings” by Monique Morrissey, December 10, 2019 https://www.epi.org/publication/the-state-of-american-retirement-savings/
