Retirement Data: Fidelity Plan Balances Q1 2020

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Source: Fidelity

Fidelity Investments has over 30 million 401(k), IRA and 403(b) retirement accounts. This makes them uniquely positioned to describe the retirement savings trends of investors.

From Fidelity's press release posted April 24, 2020:

• Market downturn caused average 401(k), IRA and 403(b) balances to drop. The average 401(k) balance was $91,400, down 19% from the record high of $112,300 in Q4 2019, but still higher than Q1 2010 balance of $71,500. The average IRA balance was $98,900, a 14% decrease from last quarter but higher than the Q1 2010 balance of $66,200. The average 403(b)/tax exempt account balance was $75,700, down 19% from last quarter but still above the average balance of $50,000 in Q1 2010.

April Market Update - A Full Credit and Employment Cycle with a Pandemic

The S&P 500 lost 12.51% in March 2020, ending at 2,584.59. YTD the S&P 500 is down 20%. Looking at this chart from Business Insider is extremely important this month.

Many Americans have been conditioned to believe that virus outbreaks can be contained "over there." Geographic separation was supposed to happen this time as well. For many Americans that logic lasted until February 29 when we learned of the first COVID-19 death in the U.S. For others this lasted until March 11 when the WHO declared COVID-19 a pandemic. Maybe the "over there" thinking ended later on the eleventh when the NBA suspended their season and folks heard Tom Hanks and Rita Wilson had COVID-19. This will be a longer post than normal, so let's jump right into price, sentiment and valuation for April 2020.