Well, the Money is Going to Savings
5/18/2015
Americans are participating more in their 401K plans as new enrollments from June 2013 to June 2014 increased by 37%, led by a 55% increase among Millennials. While cynics will see a correlation of this development to the old story of the shoeshine boy and Joe Kennedy, Main Street is getting in too late and signaling a top. However, I think it is great news. Investing is a lifelong endeavor that has ups and downs, but it can make and change lives. Young and Not so Dumb The spike in participation among younger adults points to a realization that options are changing and a willingness to do the right thing. That means saving and working even into the golden years.
In addition to greater participation, Bank of America reports a 27% increase in voluntary increases in contributions. Recently, a subscriber sent me an email delighted about his daughter investing in the market: “Kelly graduated 4 years ago. She works for Raytheon and contributes 10% to the 401K that they match! (Limits of course) to my delight she wants to take the funds from her 529 and invest via a trading account.” I’m thrilled for Kelly and all the younger folks looking to the future, just max out those employer matches (American workers leave $24 billion on the table each year from not maxing matches) and stay the course.
Charles Payne
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