Sure, a million dollars isn’t what it used to be. Still, retiring with a million bucks is quite something. With such an amount, you can live quite comfortably after retirement.
The good news?
You can retire like a millionaire, especially if you have many years before retirement.
Sounds easy, right? Well, it’s not that simple. It’s double, though. The secret? You must act. Now.
What follows is a rundown of steps you can take to secure your retirement years.
1. Get a Gold IRA
A gold IRA is a self-directed individual retirement account that allows you to own gold bullion, something you cannot do in a regular IRA.
Signing up for a self-directed IRA enables you to invest in alternative assets like precious metals, crypto, and real estate.
Investing some of your retirement in physical gold and precious metals allows you to diversify your portfolio into an alternative asset that can protect your funds when currencies and markets fluctuate.
In addition, Gold IRAs provide a hedge against inflation and deflation. On top of that, gold is a store of wealth and has shown remarkable profit potential over the years, even during tough economic times.
If you want to secure your retirement in a gold IRA, the first step is to open a self-directed IRA. You also need to pick the best precious metals IRA company to help you set up your account, buy the actual gold for your IRA, and advise you on where to store it.
Ideally, you want a company that offers unbiased education recourse, investor information, and a super-responsive customer care desk.
Most financial experts recommend storing 5 to 10 percent of your portfolio in gold.
2. Work With a Financial Expert
Indeed, you can get financial advice online. But, when it comes to saving for your retirement, you want advice specific to your financial situation — and it can be challenging to get that online.
It would be best to find a seasoned and reputable financial adviser who can analyze your finances and give you solid advice on what to do.
You can leverage LinkedIn to find a financial advisor that matches your needs and, most importantly, within your locality.
You may also want to check the advisor’s portfolio and reviews just to make sure you’re dealing with the right person. Ask to see the list of past clients. A reputable financial advisor will be more than willing to share testimonials from happy clients with you.
3. Start Saving, NOW
There’s never a right time to start saving for retirement. So, start saving as soon as possible. The sooner you hop on the bandwagon, the harder your money will work for you.
The best way to do it is to open a new savings account where you will be depositing cash regularly.
Shop around and pick an account that offers reasonable interest rates. Some saving accounts offer a 1.25 Annual Percentage Yield with direct deposit.
Further, select a savings account with minimal charges.
4. Team Up With an Experience Investment Company
Most wealthy individuals have a money manager.
That, however, doesn’t mean you must have wads of cash to work with an investment company. Irrespective of how much money you’re making, partnering with a company that knows how to invest can be an excellent step toward retiring like a millionaire.
The secret is picking a company that offers professional money management services at affordable rates.
Some companies use time-tested and consistent rebalancing techniques, enabling clients to rest easy knowing their investments are allocated and diversified proportionally.
Of course, when you have your investment taken care of, you can focus on other things.
5. Work on Generating Passive Income
Passive income is one of the most talked-about topics regarding personal finance. And deservedly so.
Passive income can be a game-changer, from helping you amass massive wealth to enabling you to stop living a paycheck-to-paycheck lifestyle.
Why passive income for retirement?
First, passive income brings stability, security, and financial freedom to your financial life. In addition, because passive income doesn’t eat into your time, it positively and significantly affects your ability to amass wealth.
If you take retiring like a millionaire seriously, passive income should be one of your primary focuses.
Whether that implies launching a business that doesn’t require your presence, investing in the stock market or combining several income sources is crucial if you want to retire comfortably.
Some ways to generate passive income include:
- Starting a dropshipping business
- Creating your own products and selling them online
- Building and monetizing a blog
- Creating and selling courses online, etc.
You can also consider investing in real estate to secure your retirement.
While you may not have the hefty upfront sums of money to invest in real estate, you can partner with companies that allow you to invest as little as $10 and receive regular dividend payments.
6. Contribute to Your Employer’s Savings Plan
Consider contributing to your employer’s saving plan if you’re employed, such as 401 (k).
The sooner you start contributing to 401 (k), the more time your money has to grow. One of 401 (k) ‘s biggest upsides is early compound interest.
This means you’ll be earning interest on the principal amount of your investment plus the accumulated interest.
Compounding has a significant impact on long-term investment and should feature highly on your list of priorities when it comes to saving for your retirement.
It may not seem like a lot looking at your 401 (k) in the first few years, but compounding can add up really fast.
7. Follow Basic Investment Principles
Your saving strategies are as essential as how much you save.
In addition, inflation and where you invest play crucial roles in determining how much you’ll have saved at retirement.
It is, therefore, crucial to know how your savings or pension plan is invested. Get well acquainted with investment plan options and ask questions.
Don’t put all your savings in one basket as a rule of thumb. Diversification is critical when it comes to saving for retirement.
You’re more likely to reduce the overall risk and improve your turn by diversifying your investments.
Of course, your investment portfolio may change depending on several factors like financial circumstances, goals, and age.
The point is that financial security and knowledge go hand in hand.
The Bottom Line
Retiring like a millionaire won’t happen by accident.
For you to live the retirement lifestyle you cherish, you must start taking decisive investment actions today.
Remember to keep track of your investments. You want to know how much your portfolio is worth at any point in time. That way, you can determine if you’re on the right path to achieving your retirement goals or whether you need to adjust.