In a strong economy those who save are rewarded


A new record for 401(k) and IRA millionaires. The economy is so good, the U.S. now has 233,000 retirement plan millionaires.

Jack Otter of Barron's told Fox Business it's all about saving.

"It's very important to put money in, paycheck after paycheck. Automate it, don't decide every week 'oh, how much am I gonna put it?' Just set it and forget it."

Otter says you can do it -- if you start early.

"If a 23-year-old is making $32,000 a year -- not a huge chuck of change -- and puts away 5% a year, raising it to 13% as the career gets going, that person would have $1.2-million by age 65."

Otter says stats show women are better investors than men.

"And for one reason: they have less confidence and they just let compounding go, whereas men say 'I can beat Wall Street' and they do worse. It's incredible, but the statistics don't lie."

Otter says those who play with their savings usually lose; the best idea is to set it and forget it. Automatically deposit 5% from each paycheck into a retirement account and get your employer to match it.


Sponsored Content

Sponsored Content