Fidelity is America’s largest retirement plan provider, so the following numbers have been gleaned from their reports. For example, as of the first quarter of 2019, American workers between 40 and 49 years old are shown to be contributing 8.5% of their paychecks to their company sponsored 401(k) plans, with an average balance of $102,700. The report also shows that employers were matching at a rate of 4.9%, which put the total savings rate at 13.4% for the typical 40-something contributor. The 20 to 29 age group indicated an average balance value of $11,800. The 30 to 39 group showed an average balance of $42,400. The 50 to 59 group averaged $174,100 and those 60 to 69, typically in the final stages of saving, held an average balance of $195,500. Further, Fidelity reports that the average 401(k) contribution rate (not including company match) is; 7% for the 20 to 29 age group, 7.8% for 30 to 39, 8.5% for 40 to 49, 10.1% for 50 to 59, and 11.2% for the 60 to 69 age group.
Matching fund contributions by an employer make the 401(k) a premium retirement plan vehicle, but those working for companies not offering such a plan do have options, including a traditional, Roth or SEP IRA, or a normal investment account. 401(k)’s typically have a somewhat limited selection of investments and in today’s volatile stock market the need for physical precious metals ownership is near an all time high, whether within an IRA or simply held in a safe at home. Gold and other precious metals have a long history of successfully providing protection from all types of economic calamity that’s historically known for destroying investments, savings, and legacies.
Considering today’s cacophony of economic turmoil and consternation, ranging from geo-political unrest, to trade wars, and global recession, it’s easy to see why precious metal prices are rising, even as the stock market threatens new highs. But today’s lower metal prices are just an added bonus, which will probably be short-lived. Our long-in-the-tooth bull stock market may be in the final stages of a melt-up, the final stage before a collapse. Morgan Stanley, Fidelity and Bloomberg have been warning about it since the beginning of the year, but no matter what, don’t be in position to get caught without a chair when the music stops! Call the trusted precious metal experts at American Bullion for assistance, whether held within an IRA or bought out cash for home delivery, at (800) 653-GOLD (4653).
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.