Are you ready to become a millionaire? Let’s talk about how to make smart investments and make that goal a reality.
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We now have more 401(k) millionaires than ever before according to Fidelity. It’s an interesting benchmark to hit. So, what is the roadmap to getting there? It will take time, but there are four keys to reaching one million dollar before you retire
Is a million dollars the goal? Remember that everyone is different. Be sure to set the bar accordingly. If you want to retire early and make working until full retirement age optional, you’ll want to achieve your goals sooner rather than later. So, you’ve got to start early when it comes to saving for retirement. Find out how much you’ll have by a certain age based on what you’re doing now. It may be easier if you start younger, but regardless, stay steady with your contributions.
To stay consistent, having the money come out of your paycheck at work is an easy way to contribute to your 401(k). If you don’t have a 401(k), you can still save in an IRA. Save 10 percent somewhere! You are very unlikely to easily be able to do it all at once at the end of the year, but doing it over time with every paycheck is much more manageable.
Everyone has a risk tolerance, but you can’t be too risk-averse. If you’re younger, you have plenty of time before you’ll need this money in retirement and need to focus more on long-term growth. After you turn 50, you need to seek out good advice on how to prepare your investments for retirement.
Sometimes it feels like there are never enough hours in the day. How can you make money while you sleep? The rich keep getting richer because their assets are working for them. The miracle of compound interest makes that possible. How do you do it? Start early, spend less than you make, amass some assets in a systematic way, and let those assets make money for you.
Are you set to become a millionaire someday?
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[0:27] – Do you have a million dollars in your 401(k)?
[1:54] – Is a million dollars in a 401(k) common or attainable?
[3:18] – Everybody is different.
[4:41] – Start early.
[9:23] – Make sure you’re consistent with contributions.
[11:19] – Don’t be too risk-averse.
[13:43] – Find ways to make money while you sleep.
“Everybody should find a way to save 10 percent of what they earn or more.”
– David Dickens
PODCAST: The 3 Worlds of Money