Habits of 401k Millionaires

E32: How to Become a 401(k) Millionaire As a Hair Salon Owner

From time to time, we get questions into the show. And as I read interesting articles, I create a Google spreadsheet where I store these ideas for future episodes. So, I decided to fast forward to a topic I’ve been working on for a couple of weeks: habits of 401k millionaires.

Now, today’s show isn’t just for the hair salon owner. In fact, this episode will be beneficial for anyone on your team who participates in a 401k plan. So, please share this episode with anyone who might find it helpful.

I came across this topic a few years ago when I read a Fidelity Investments study where they reviewed 12,000 accounts of people who had over $1 million in their 401k account. From this data, they were able to determine five habits of 401k millionaires, which serves as the basis for today’s episode.

However, as I started to research this topic, I found that many other financial publications and money blogs have also tackled this topic in one way or another. That is, how to achieve a $1 million account balance.

Of course, I’m a financial nerd, and I read and listen to those different financial blogs and podcasts. But I think my unique perspective on this topic is that I work with hair salon owners and their teams, many of whom are 401k millionaires.

Therefore, as I walk through Fidelity’s list of the five habits of 401k millionaires, I’ll try to include some of the insights I’ve gleaned by working with hair salon owner clients that may resonate with you.

Episode Highlights

[03:00] Demographic trends of 401k millionaires.

[05:26] The importance of starting early when it comes to saving for retirement.

[06:00] Why you should contribute a minimum of 10-15% of your salary to your 401k account.

[09:47] How to avoid leaving “free money” on the table when contributing to an employer-sponsored retirement plan.

[12:40] Investing with your long-term financial goals in mind.

[17:34] What to do with your 401k when you change jobs based on the habits of millionaires.

Looking for more tips on how to grow, scale, and ultimately sell your hair salon business? Check out our other Unchained From the Chair podcast episodes.

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