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What percentage of the stock market comprises 401K contributions For example today the S and P 500 is at 1455. How many of those points are from retirement contributions?
Wiki User
∙ 11y ago
According to Fidelity, the average 401(k) balance was $69,100 at the end of 2011 ( http://bucks.blogs.nytimes.com/2012/02/23/fidelity-finds-slight-rise-in-employee-401k-contributions/). If there are 100 million contributors, which I consider an upper limit, that total valuation is approximately $6.9M millions ($6.9 trillion).
According to Seeking Alpha, world Stock Market value in March 2010 was $49.1 trillion down from a December 2007 peak of $61 trillion (http://seekingalpha.com/article/199294-world-stock-market-value-reaches-20-month-high).
Therefore, one possible upper limit percentage of 401k value to total market value would be the maximum 401k estimate of $6.9T divided by the lower total market value of $49T or ~14%. However, I would consider that to be a fairly significant overestimate considering that the market has gained some value back since 2010 and that I don't believe there are 100M 401k accounts in existence.
Wiki User
∙ 11y ago
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Which is an example of a defined contribution retirement plan?
This would be an employer sponsored retirement plan. With these you will put in so much money each month and the employer will match your contribution by some percentage.
What is a retirement annuity?
A retirement annuity is a financial product designed to provide a steady income during retirement. It is typically purchased with a lump sum or through regular contributions during a person's working years. The annuity pays out regular payments to the investor once they reach retirement age.
What percent of your current income do you need to retire?
The answer to this question depends on your personal situation. One way to determine this is to look at your personal spending budget and then remove any items that do not occur during retirement. For example, most people want to pay off the mortgage before they retire. In that situation they can subtract their mortgage payment from the current spending to determine their retirement spending. Also you need to add back anything that you would spend in retirement but not before. For example, long-term care insurance might be an item you pay for only during your retirement years. Another way to calculate this is to use the rule of thumb that most people spend 75% of their pre-retirement expenditures during retirement. Once you have the retirement spending amount you can calculate the amount of retirement income you need by dividing your retirement spending by (1 + your average tax rate). You can then compare this number to your current income to get the percentage of your current income you need during retire. One last thing, you need to be aware that your retirement income needs to go up each year by inflation to cover the increases in your retirement spending.
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It is the quality of your contributions that count on Answers, not quantity.Your charitable contributions are all greatly appreciated.Leonardo Da Vinci and Albert Einstein both made huge contributions to humanity.
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"dependent variable" comprises TWO words. Which word do you want in the sentence?
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Yes. U can have as many retirement accounts as you want. Many people have multiple
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