Millionaires are multiplying inside America's 401(k)s, and headlines are throwing a party. But buried beneath the celebration is a less glamorous stat: the average balance is still barely over six figures. Fidelity's latest report, released in September, shows a record-breaking 654,000 accounts now hold over $1 million, a nearly 10% jump from the previous quarter. It's the highest number ever recorded. Yet despite the surge, the average 401(k) balance sits at just $144,400—a record in its own right, but ...

Financial planning for retirement is tricky. In spite of guidelines, average savings amounts and rules for how much you can draw down your investments each year, there’s no way to predict how long you’ll be retired for. Derek Jones, chartered financial analyst at Scratch Capital, notes, “There are virtually endless scenarios based on different dates of death that will each pose their own unique considerations and levels of complexity. The more prudent move is always to plan for the worst-case scenario” (1 ...

Core Insights - Inflation is near 3% and the Federal Reserve may continue to cut interest rates, prompting individuals to reconsider their investment strategies [1] Group 1: Understanding Rate Cuts - Rate cuts typically indicate a cooling economy or a softening labor market, aimed at stimulating economic growth and job creation by lowering borrowing costs [2][3] - The effectiveness of these cuts is crucial; if successful, they can prevent a downturn, but failure may lead to an earlier-than-expected recession [3] Group 2: Investment Strategies - Investors are advised to lock in higher yield investments as banks may reduce interest rates on high-yield accounts following a rate cut [4] - Refinancing debts is recommended to take advantage of lower interest rates, particularly for mortgages and high-interest credit card debts [5][6] - Portfolio rebalancing is suggested due to the significant rise in stocks compared to bonds, ensuring appropriate risk levels [7] - To protect against inflation while earning yield, investments in Treasury inflation-protected securities (TIPS) may be considered [8]