#2:How to become a 401(k) millionaire

cnn news - #2:How to become a 401(k) millionaire


The number of workers who have $1 million or more saved in 401(k) or other workplace retirement plans provided by Fidelity Investments nearly doubled from 2012 to 2014, according to the firm. In a separate

study, Fidelity analyzed over 5,500 plan participants who made less than $150,000 a year, yet had amassed over $1 million in 401(k) assets by the end of 2012.

  The success of these retirement savers wasn't purely based on the stock market's gains. Financial advisors say to become a 401(k) millionaire, you need to become a serious saver by doing three things:

If you're in your 20s and you just started your first job, put money away now for retirement. Fidelity has found that to become a 401(k) millionaire, workers generally started saving at age 25 and plan to retire at 67. That doesn't mean you're too late if you jump start your retirement savings in your 40s or 50s, but you'll have to contribute a lot more money every month to make up for lost time.

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  "It's the discipline that can make a difference, not the amount you earn. Keep in mind that the amounts that can be contributed to a 401(k) or similar retirement plan are the same regardless of your salary," said senior financial advisor

Mary Ryan atVanguard Asset Management Services

. You can contribute up to $18,000 in a 401(k) plan this year. If you're in your 50s, you can put away an extra $6,000 "catch-up contribution" for a total of $24,000 in 2015.

You should aim to contribute a minimum of 10 to 15 percent of your pay to you

r 401(k) every year—increasing your contributions by 1 percent a year until you reach the 15 percent mark or the maximum contribution limits. If you're not saving 10 to 15 percent, at least contribute enough to meet your employer match. Most employers will offer some matching contribution. T

hat's free money that you don't want to leave on the table.

Read More How much do you really need to retire well?

Fidelity found the savings rate for the average 401(k) millionaire is actually a little higher

at 16 percent, including employer contributions.

This is most important. Start saving early and save asmuch as you can–and make

 a vow to stay the course.

"It takes a combination of actions to reach any financial goal. Starting early can give you a powerful advantage, thanks to the power of compounding. But having the discipline to keep investing through the plan is also important," Ryan said.