3 Money Moves To Make in Your 40s To Retire a Millionaire at Age 55, According to a Money Expert
Written by
Ashley Donohoe
Edited by
Jenna Klaverweiden
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Retiring at 55 will likely involve relying heavily on your retirement savings, as Social Security benefits remain unavailable until you turn 62.
In a recent YouTube video, money expert Jaspreet Singh said that 40-somethings need to do things differently than making maximum 401(k) contributions and betting on better market returns and falling inflation. He recommended making these three financial moves to retire a millionaire at 55.
Grow Your Money Faster
While it’s not impossible to become a millionaire with just a 401(k), Fidelity’s fourth quarter 2025 retirement analysis showed that the average 401(k) balance was only $146,400.
“Your 401(k) might not be a bad place to invest your money, but that doesn’t mean it should be the only place you invest your money,” Singh said. Singh explained that a lower average growth rate and higher fees make 401(k) additional options worth considering for faster wealth building.
Singh mentioned stock market funds as an alternative, as well as the State Street SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) as two exchange-traded fund options with different levels of risk and return.
On the other hand, going a riskier route and actively investing in companies’ stocks can help beat the market. However, carefully researching companies and industries will be important.
Whichever investment strategy you choose, keep your return expectations realistic, understand what you’re putting your money in and account for any fees that will cut into your wealth.
Use Tax Strategies To Keep More Money
“As you grow your income and your wealth, taxes become a much larger expense because there’s a lot of different types of taxes that you pay,” Singh said. Whether you’re dealing with income, estate, property or capital gains taxes, finding ways to legally keep more of your income will leave more funds to invest.
While there are many tax breaks, Singh focused on those related to real estate investments. For example, Singh discussed using 1031 exchanges to defer taxes on a sold investment property by reinvesting the profits to buy another. But again, you’ll need to follow IRS rules, including those on minimum property holding times.
To ensure you follow the rules and maximize your savings, consider working with a tax expert.
Leverage Knowledge To Boost Income
Trying to become a millionaire solely on your salary can be challenging, even with raises. A Mercer survey of 1,000 U.S. employers found that the average expected total salary increase in 2026 was only 3.5%, not much higher than the 2.4% inflation rate as of February 2026.
Singh said that the key to making more money isn’t counting on raises but instead is putting your knowledge to use.
“If you have spent 10 years learning something and you can teach somebody how they can do that same thing in six months so they don’t have to go through the same 10 years of pain and struggle, they’d be willing to pay you for that,” Singh said.
For example, you might start offering consulting services or seek a higher-paying advisory role. Other ideas include side hustles, such as offering workshops, creating digital products and teaching courses.
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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