The facts are in:

  • One out of every six retirees are millionaires*
  • The average wealth of retirees has surged to $752,000* over the past 30 years
  • The wealth increase is mostly in financial accounts, easily accessible for retirement
  • Average life expectancy for 60-year-olds is 83*

Are you included above? Here are five tips to help.

  1. Save first. Don’t put off saving because it’s not yet convenient. Those who start early have “time” to let money grow. Time can often be more valuable than rate of return. Savings of just $438 per month starting at age 25, with a return of 6.5%, will grow to $1 million by the time you are 65. If you wait until age 40, your monthly investment would need to increase to $1,355 to reach the same $1 million. Delaying a savings routine can be a costly mistake.
  2. Invest in your company’s 401(k) now. Its automatic deduction is easy and painless. Don’t wait.
  3. Take advantage of your employer’s 401(k) match. Take it all! If your employer offers to match 100% of your contribution up to 6%, DO IT! It’s free money that may help build your savings, and you can’t get it in arrears after you realize you waited too long.
  4. Live below your financial means. Just because you can buy that expensive car doesn’t mean you should.  Don’t sacrifice your ability to save. Wealth creation doesn’t care what poor excuse you have to offer. It just hurts you later in life when savings really matter.
  5. Invest in the stock market and be patient. Get rich slow. The average millionaire neither avoids investment risk, nor depends on the overnight bonanza. Talk to a professional and decide what strategies might be right for you.  Stashing money into your mattress may sound safe, but it is not a strategy of the rich and famous.  

*Source: The State of Retirees, United Income, Matt Fellowes, CEO

CATEGORY: Personal Finances | September 3rd, 2019 | BY: Neal Pettinelli



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