Retiring as a millionaire is the dream of many Americans, and while a million dollars isn’t what it used to be, that level of wealth would make retired life comfortable for many. The good news for you is that this goal is achievable, especially if you have plenty of time before retirement.
Retiring a millionaire is simple, but not easy. The key? Act right now.
1. Start saving ASAP
It’s never too early (or too late!) to start saving for retirement. The sooner you start investing, the harder your money is going to work for you. You could retire a millionaire a lot faster if you throw more money into these accounts sooner.
Start with a new Savings Account today so that you can start stashing cash. Open a CIT Bank Savings Connect Account and earn 15 times the national average today.
This account not only lets you save money and earn higher than average interest, but you also get digital convenience with 24/7 online access. You can open an account and transfer money into it in less than 10 minutes to start earning interest by tomorrow and get closer to your $20,000 goal!
2. Work with a company that knows how to invest
The most wealthy almost all have money managers, but you don’t have to bring in big bucks to work with a professional investment company. No matter what your income looks like, working with companies that understand how to invest will help you.
Vanguards’s Digital Advisor is professional money management at a low cost. They can help you invest your retirement savings so you can focus on other things.
Try it for the first 90 days with no advisory fees.¹
A recent Vanguard study revealed a self-managed $500,000 investment grows into an average $1.7 million in 25 years. But under the care of a pro, the average is $3.4 million. That’s an extra $1.7 million!
Maybe that’s why the wealthy use investment pros and why you should too. Let Vanguard’s new online financial planner match an investment strategy to your retirement goals.
3. Diversify your investments in a few clicks
The savviest investors know that diversification is key to any investing success, especially when it comes to planning for a secure retirement. If you’re unsure where to start, consider a portfolio built by experts with diversification in mind.
M1 offers automated, commission-free investing based on goals you set. They also offer fractional shares so you can be invested in big name brands like Amazon, Apple, Tesla, and more in just a few minutes.
When you sign up, you can get a bonus of up to $250 if you deposit $5,000 or more.
4. Generate passive income and receive regular dividend payments
Real estate is a great choice to generate additional, passive income for the long haul. Unlike investing in stocks, real estate is shielded from the constant ups and downs of the market and offers a return of up to 6% over time, which makes it a smart way to diversify your portfolio. HappyNest now makes investing in real estate easy and accessible.
Investing in real estate is a great option for anyone looking to build long-term wealth that can stand up to risk and market volatility. HappyNest allows your nest egg to grow over time.
5. Keep track of what’s important
There’s a lot to keep up with in life. You have IDs, health records, financial and investment accounts, legal documents, insurance policies, tax returns, bills, and more. Nothing provides peace of mind like being hyper-organized and having everything you need in one place.
With a tool like Trustworthy, you can easily protect, organize, and optimize your most important information. This is an especially useful tool for families where you need to keep track of records for multiple people. Trustworthy helps you stay organized and even sends auto-reminders when it’s time to shop your insurance or an annual bill is coming due.
It’s like your very own digital personal assistant. You can even catalog your valuables in the event you ever need to file an insurance claim for loss or theft.
6. Cut your largest monthly payments and put the savings into your IRA
As the inflation rate climbs, interest rates are likely to climb as well. If you haven’t already, you may want to consider moving sooner than later to refinance your mortgage.
Give your budget some breathing room by refinancing to a lower interest rate, extending the length of your loan or switching to an adjustable-rate mortgage (ARM). You could lower your monthly payment when you refinance with RateZip and put those monthly savings into your retirement accounts.
RateZip is an easy-to-use platform that allows you to compare rates from a robust network of lenders with nationwide coverage all in one place. You can get quotes in as little as two minutes from multiple lenders. RateZip states refinancing can save hundreds or even thousands each year in mortgage payments. Comparing quotes through RateZip is free and won’t affect your credit but you will need to enter valid contact information to receive accurate quotes.
Do you have savings tips for fellow retirees, or were you able to save money with these services? Email us at Money@GOBankingRates.com and share your story. We may even choose to highlight it in a future article. Nicole Spector and Adam McFadden contributed to the reporting for this article.