401(k) Millionaires, HSAs, Bond Market, Gold & Home Cost Basis: Expert Insights

What it Takes to Be a 401(k) Millionaire

The number of 401(k) accounts with a balance of $1 million or more has jumped to 595,000, a new record. How did these individuals achieve this feat? The answer is a combination of many years of saving, a high savings rate, and long-term discipline. According to Fidelity, the average 401(k) millionaire is around 59 years old, has been contributing to their account for 25 years, and has a contribution rate of 25.9% (including the employer match). That rate is 10 percentage points higher than the average for all workers in the 50 to 59 age group. This suggests that successful retirement savers prioritize saving and start early.

Making the Most of Your Health Savings Account (HSA)

No account has more tax benefits than a health savings account (HSA). Contributions go in pre-tax, the money grows tax-deferred, and withdrawals are tax-free if used for qualified healthcare expenses. Roger Young, thought leadership director at T. Rowe Price, provides insights on how to maximize your HSA. Young recommends first maximizing your company match on a retirement account. Then, build up your HSA to at least cover the amount of your deductible, and possibly even your out-of-pocket maximum. If you have significant savings capacity, consider maxing out your HSA to maximize long-term tax benefits. However, because there is a steep 20% penalty if you withdraw the money for things other than qualified health expenses, this should not be your all-purpose emergency fund.

The Bond Market is Having Its Best Year Since 2020

After a rocky start, 2025 has been a good year for bond investors. The Vanguard Total Bond Market ETF is up 6.6% so far this year (as of Thursday afternoon). If the year ended today, this would be the best year for bonds since 2020. Bond prices are influenced by interest rates, which in turn are influenced by monetary policy set by the Federal Reserve. At his August 22nd speech at Jackson Hole, Wyoming, Federal Reserve Chair Jerome Powell suggested that the Fed could soon cut interest rates because the weakening job market appears to be a bigger risk than inflation. As a result, short-term interest rates have come down.

Gold is Crushing the Nasdaq and the S&P 500

The SPDR Gold Shares ETF (GLD), the world's biggest gold ETF, is up 109% over the past three years. That is 13 percentage points more than what the Nasdaq has returned and 40 percentage points more than what the S&P 500 has returned over the same period. Silver has done even better, with the iShares Silver Trust ETF (SLV) up 118% over the past three years. There are many possible explanations for the rise of precious metals. Investors may be worried about the economy, higher inflation due to tariffs and deglobalization, the independence of the Federal Reserve, or the decline of the U.S. dollar. Some of the biggest buyers of gold have been central banks from around the world, which, by some measures, now own more gold than U.S. treasuries. While The Motley Fool tends to favor investing in actual businesses that generate cash by providing goods and services, gold can be a good portfolio diversifier in times of turmoil or general uncertainty.

What Determines Your Home's Cost Basis?

The cost basis of your home begins with the price you paid at settlement. Then added to that are many of the closing costs, including abstract fees, legal fees, title search, owner's title insurance, surveys, transfer taxes, and any amounts the seller owed but that you agreed to pay, such as back property taxes. However, keep in mind that the costs associated with taking out a mortgage are generally not added to the basis. The cost basis of your home can also be increased by any renovations, upgrades, or additions you made to the home. These must be actual improvements; standard repairs and regular maintenance do not count. Keep all of this information, your closing documents as well as evidence of any improvements you make over the years in one folder, so that it's all in one place when you sell your home and need to calculate cost basis.