7 Ways Millennials Can Become Rich and Stay Wealthy in Retirement

The oldest millennials are now in their early to mid-40s, with retirement in the not-too-distant future. The decisions they make over the next five years can set them up to live comfortably throughout their golden years, but they must act fast. Waiting too long to start investing or to make money moves may mean that they join the millions of seniors scrimping and saving to get by.

We asked financial experts to weigh in on how people born between 1981 to 1996 can create financial stability now and for the long term. Here are the seven ways they suggested millennials can become rich and stay wealthy in retirement.

Take advantage of the accounts available to you, especially if there’s free money on the table.

“Investing wisely is paramount. Millennials should prioritize retirement accounts like Roth IRAs and 401(k)s, especially if their employer offers a match — which is essentially free money,” said Mike Kojonen, founder and owner of Principal Preservation Services LLC. 

A side gig can be a smart way to go about wealth-building and retirement prep.

“Side gigs can indeed play a crucial role in building wealth, not just through extra income but also by developing skills that can lead to higher-paying opportunities,” Kojonen said. “From freelancing in your field of expertise to creating a profitable blog or YouTube channel, side hustles can augment your income and help you reach your financial goals faster. However, remember to manage this income wisely — investing the earnings rather than spending them can make a significant difference long term.”

“Tax planning is another overlooked aspect that can ensure you keep more of your hard-earned money, thus increasing your wealth over time,” Kojonen said. “Utilizing accounts with tax advantages, understanding the tax implications of your investments, and strategizing your withdrawal plans in retirement are crucial steps. Sometimes, the assistance of a financial planner can help navigate these complex decisions.”

“Millennials have multiple options available for wealth-building. For example, picking up a side gig is a viable option for this generation, especially with the variety of side gigs available. However, seeking passive income in the form of investments is an even better option. For example, opening a brokerage account and investing in mutual funds can be a great way to build wealth with minimal risk,” said Jake Hill, CEO of DebtHammer Consolidation.

“I would definitely recommend investing as a great way for millennials to begin accumulating wealth. Of course, when you’re looking at investments, it’s good to consider diverse options that can help protect your money from inflation and economic downturn in various industries,” said Carter Seuthe, CEO of Credit Summit.

“So, you’ll want to look into long-term investments like real estate, along with potentially things like precious metal investments. ETFs can make great investments when you’re looking to add some diversity to your portfolio since they allow you to invest widely based on a smaller upfront investment.” 

To really make the most of your money, it can be best to mix things up.

“Investing is definitely the way to go, in my experience, when it comes to millennials building up that wealth that will sustain them through retirement. I tend to recommend a mix of reliable long-term investments, such as real estate, with some that are more potentially profitable in the short term as well — such as crypto, especially as it becomes more normalized and regulated as an investment option,” said David Kemmerer, CEO of CoinLedger. 

“Consider a mix of stocks, bonds, real estate investments, and potentially, cryptocurrency, if you’re comfortable with its volatility. The best investment strategy is one that aligns with your risk tolerance and long-term goals. A young investor has time on their side, so starting early with a consistent investment strategy can leverage the power of compounding interest significantly,” Kojonen added.

But building your wealth won’t mean much if you’ve still got debt.

“To stay wealthy in retirement, millennials need to focus on minimizing/eliminating debt during their working years. This generation carries a significant amount of debt, on average, which can derail their plans for a comfortable retirement if it isn’t addressed while they are still working,” Hill said.