Working for 40 Years Is No Longer the Path to Wealth: Do These 4 Things Instead, According to Preston Seo

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When it comes to building wealth, most people expect to work for 40 years, save and invest money for retirement and hope it doesn’t lose value due to inflation. Many accept this traditional approach as the right way to do things, but there are some who point to other ways to amass a fortune.

Preston Seo, a finance influencer and founder of The Legacy Investing Show, offered a different perspective on how to build wealth over the next 40 years. In a recent Instagram post, Seo highlighted four steps to take to improve your money-making journey.

Fund a Side Business

The traditional approach to retirement is contributing money to a retirement account each month and letting it accumulate over time. Seo pointed out that employees who do this get the short end of the stick. “Wages don’t keep up with inflation, and fees eat into your 401(k),” he said.

Instead, he suggested using money from your day job to invest in education and launch your own side business. Having a side business can provide extra cash, allowing you to pay off debts, build an emergency fund or have more money to invest. As the company grows, you’ll scale your income and make more than you’d be able to with a salary. 

Get Remote Income

Another advantage of starting a side business is the potential for remote income. Seo said if you have a remote job, you’re no longer trading time for money. Being your own boss means you can work when you’re most effective, avoid time-consuming commutes and have the work-life balance you need. Being in charge of your own business also gives you the control to retire when you want or continue your business into old age.

More Tax Deductions

Taxes are another key consideration when building wealth, as they typically consume a significant portion of employees’ paychecks. “Employees pay the highest tax rates,” he said.

The IRS taxes employees at different rates based on their salaries. Single employees earning:

• $0 to $11,925 pay 10%
• $11,926 to $48,475 pay 12%
• $48,476 to $103,350 pay 22%
• $103,351 to $197,300 pay 24%
• $197,301 to $250,525 pay 32%
• $250,526 to $626,350 pay 35%
• $626,351 and up pay 37%

To keep some of this money, Seo explained, business owners can maximize tax deductions to save an extra $10,000 or more each year. They can write off expenses such as healthcare, travel or even their children’s wages to reduce their overall tax liability. 

Reinvest Profits

Reinvesting profits from your small business can amplify your wealth. Seo suggested diversifying your extra money and investing it in areas such as cryptocurrency, ETFs and real estate. Doing so compounds your assets and helps your returns outpace inflation. For example, the S&P 500 has averaged a 10.4% return between April 1957 and April 2025. Although the U.S. inflation rate has fluctuated between 2% and 3%, reinvesting your company’s profits effectively can lead to significant annual gains.

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