A single political tweet wouldn’t normally merit a mention, but the president is Trump, and these are the times in which we live. The Commander-in-Chief took to the social media platform Thursday morning to hype recent market highs and make a passing reference to Fidelity’s news that more 401(k) participants are millionaires than ever before.
“The news from the Financial Markets is even better than anticipated,” the president tweeted. “For all of you that have made a fortune in the markets, or seen your 401(k)’s [sic] rise beyond your wildest expectations, more good news is coming!”
The good news to which he refers could mean his plans to sign an executive order on retirement security in Charlotte, North Carolina, on Friday.
The White House announced the appearance earlier this week, and while details were few, a spokeswoman said the order is part of an administration policy “to promote programs that enhance retirement security and expand access to workplace retirement savings plans for American workers.”
Labor Secretary Alexander Acosta will accompany the president for the announcement.
Fidelity Investments reported earlier in August that 168,000 of its plan participants have $1 million or more in their account—an increase of 49,000 people compared to this time last year.
The average balance rose 1 percent to $104,000 between the first and second quarters—only slightly less than the all-time high of $104,300 reported at the end of 2017. The figure represents a 6 percent increase from this time last year, when the average balance was only $97,700.
The news from the Financial Markets is even better than anticipated. For all of you that have made a fortune in the markets, or seen your 401(k)’s rise beyond your wildest expectations, more good news is coming!
— Donald J. Trump (@realDonaldTrump) August 30, 2018
Fewer workers are dipping into their accounts, too. The percentage of participants with outstanding 401(k) loans has reached its lowest level in almost a decade. Just 20.5 percent of savers have borrowed against their account. The lowest reported percentage was 19.9 percent in the second quarter of 2009.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
