The number of retired millionaires is increasing year by year. Billionaires themselves debate how much it will take to achieve a stable life in retirement, but for many Americans approaching retirement age, reaching that million-dollar mark becomes a goal. I’m here.
According to Ramsey Solutions’ largest survey of billionaires ever, 75% say regular long-term investments are the key to their success. “Most of them thrived through consistent investment, avoiding the plague of debt, and spending wisely,” the study claims. “No lottery tickets. No inheritance. No six-figure income. True.”
When Business Insider asked financial planners how their billionaire clients retired without traditional retirement benefits, their answers were clear, straightforward and risk-averse.
1. Avoid debt at all costs
Unfortunately, most Americans live in debt. But if you want to build a successful financial future without relying on traditional retirement accounts, you need to get your debt under control.
“People who have been able to build a net worth of $1 million or more without a 401(k) or IRA have very little debt in their working and retirement years,” said RJ, a financial planner. . Weiss told Business Insider. “This is important and should not be taken lightly, as people who do not consistently pay their debts over their lifetime are likely to take more risk across their portfolios.”
2. Always reinvest
Harrison Wallace Financial Group Founder and CEO Fallon Dawgs Uses Dividends, Interest and Other Forms of Income Sharing to Purchase Additional Shares and Units stressed the importance of doing so, especially if you are not using the traditional retirement route.
“The key is to continue to reinvest and be disciplined about returning cash from rentals and other business activities to successful businesses, real estate projects, or stock market-related investments. ” said Daugs.
3. Live below your income but within your income
Millionaires have the money to buy whatever they want, but most people make money by spending far less than they earn. This is good advice for budding billionaires. Living within a limited budget, cutting back on spending, and prioritizing financial goals such as saving and investing will pay dividends in the future when wages end and retirement spending begins.
4. Create a passive income stream
As Time magazine pointed out, making money outside of work, such as renting out real estate or parking, or earning commissions through affiliate marketing, is possible and can be profitable. “This could include small businesses that they built responsibly throughout their lives and are now family-run,” Weiss said. “Still, even if the owner no longer works full-time, they still get paid. It’s possible that it’s now being rented out and bringing in monthly income.”
See also: 6 retirement incomes that aren’t taxable
MORE: Experts Propose Tax Caps as Social Security Solution — Which Americans Will Be Affected Most?
Traditionally, retirement planning has focused on investments, centered around social security benefits, 401(k) contributions, and individual retirement account (IRA) strategies. But the key to billionaire retirement may lie in maintaining unconventional and unconventional savings habits more than many think.
Retiring as a millionaire is within reach of even the average investor if you follow a few strict rules. Investing early and consistently is always a recommended strategy, but often the blueprint for becoming a millionaire and retiring includes living below your means and not going into debt. increase.
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