Fidelity Fact of the Day:
Employers Are Matching 401(k)s Again
By Benjamin Pacini
•
Tuesday, December 1, 2009 11:05 am
Things aren’t looking so bad after all—at least according to Fidelity Investments, the nation’s top provider of 401(k) plans. As the economy is showing signs of significant improvement, employers are beginning to match 401(k) contributions again. If you were thinking about investing more into your 401(k), things are looking good.
For the broader economy, this is both a harbinger of good things to come, and a good thing in itself. It indicates that employers have the money to pay towards the investments of their employees, which is a simple way of saying that wages are rising. This is because companies are profitable again and have the funds to do so. This signals to markets that stock prices should increase, since companies are faring better.
More importantly though, the employers who are doing this are incentivizing individuals to invest in the future of the nation through the stock market. This means that more employees are putting money into stock investments, which leads to higher stock prices.
The source of this information is Fidelity Investments, who released a report recently. Click here for the PDF.
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