Monday, August 3, 2015

Going Up and Down with 401(k)s

The sluggish stock markets this year have meant that 401(k)s haven't been earning income as fast as most people would like. Through the first seven months of the year, the S&P 500 is up just 2.2 percent.

But that hasn't stopped people from putting money away into these retirement accounts. According to Fidelity, the average annual contribution to a 401(k) - counting both the employee's investment and the amount contributed by the employer - rose to $10,180 by the end of June. That's a record high for that figure.

They've need that just to tread water, given the difficulties in so many investment areas this year. Despite all those inflows, the average balance in a 401(k) dropped from $91,800 at the end of March to $91,100 at the end of June.

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