Retiring a millionaire isn’t as farfetched as it may seem. With a bit of saving, investing, and a proper plan, you can be well on your way to hitting $1 million — or more — by the time you reach retirement age.
In fact, the number of retirement millionaires have reached record levels, according to data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans. Retirement savers with a 401(k) balance of $1 million or more increased to 365,000 during the first quarter of 2021, while the number of those with an IRA with a balance of $1 million or more jumped up to 307,600.
Here’s how you can retire a millionaire:
Saving is the key to reaching almost any financial goal, especially if you want to retire with a million-dollar portfolio. But the trick isn’t necessarily how much you save, but when you start.
“One of the huge keys to success here is to take advantage of your biggest asset: time,” said Tony Molina, CPA and senior product specialist at Wealthfront.
Most experts recommend contributing at least 10% to 15% of your income to your retirement fund. But if you’re not able to contribute that much, don’t let that discourage you. Saving any amount can put you significantly ahead in reaching your retirement goals, thanks to compound interest.
