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. Find The Right Expert For Your Situation
Sure, you can search for financial advice online, but it’s never going to be specific to your financial situation. The best option will always be an experienced professional who can look at your finances and advise you on what to do. But who has time to sift through thousands of advisor profiles?
WiserAdvisor does all that work for you, matching you to the best financial advisor for your specific situation so you get in an expert in the areas you need.
There’s no cost to you and no obligation to hire the advisor, so there’s not much to lose. Plus, WiserAdvisor screens advisors to make sure you’re only getting the best experts.
2. Start Saving ASAP
It’s never too early (or too late!) to start saving for retirement. The sooner you start saving, the sooner you’ll be able to invest and have your money going to work for you. You could retire a millionaire a lot faster if you throw more money into these accounts sooner.
Sign up for a new SoFi Checking and Savings Account today so that you can start stashing cash. You can earn a cash bonus of up to $300 with direct deposit and you can get up to 1.25% APY (Annual Percentage Yield) on all checking and savings balances with no balance cap restrictions.
Plus, there are overdraft fees, no minimum balance fees and no monthly fees. You can even get paid up to two days early when you set up direct deposit.
3. Work with a company that knows how to invest
The 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.
Vanguard’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.
Take advantage of Vanguard’s time-testing methodology and experience the wealthy have trusted for years. With Digital Advisor’s practice of consistent rebalancing, you can rest easy knowing your investments are diversified and proportionally allocated – a must for any investment portfolio.
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.
4. Generate passive income and receive regular payments
One of the most common ways to generate passive income is to own rental property, but it usually requires a large upfront investment. Enter Arrived. Innovative and distinctive, Arrived is a unique investing opportunity that gives individuals access not to the stock market, but to the rental home market — a whole other, booming ballgame.
For an initial investment of as little as $100, you can participate in Arrived’s unique platform and purchase shares of pre-vetted rental properties, enabling you to become a bonafide real estate investor. All the work is done for you so that you can just sit back, relax and collect passive income. You’ll also benefit from property appreciation as the value of the home appreciates over time.
Most people start with a small investment to see how the first quarterly rental income payment looks and then invest more as they see the returns roll in. Who knows? Maybe you’ll make enough in the rental housing market to be able to pad your retirement income.
5. Manage your money the modern way
There’s a lot to keep up with in life, especially when it comes to your finances. You have 401(k)s, checking accounts, savings accounts, investments, credit cards, and more. Add to that a spouse or partner with their own set of accounts and it’s enough to make your head spin.
Nothing provides peace of mind like being hyper-organized and having everything you need in one place. With a tool like Monarch Money, you can easily sync all of your accounts, collaborate and get a shared view with a partner, get personalized advice on how to build financial resilience and make progress toward goals. The first step to building wealth is knowing where you stand and creating a plan. Monarch makes this easy.
It’s like your very own financial advisor. Your partner or spouse can even receive their own login, giving everyone a shared view and plan without giving up direct access to each other’s accounts.
6. Maximize your tax advantages to increase your net worth
There’s nothing worse than missing opportunities and if you’re not finding a way to maximize your tax advantages with your accounts, you’re missing an opportunity.
Playbook creates a financial plan specifically for you that optimizes your investments, tax advantages, and goals without charging assets-under-management fees. One of the most critical parts of this plan is maxing out tax-advantaged accounts, so Playbook finds eligible accounts and works them into your plan.
The time to act is now. Your tax advantages expire every year so if you miss a year, you’ll never get those dollars back.
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.