To retire rich is the goal of a lot of people. I mean, who wouldn’t want to have an ultimate nest egg saved up and finally have the free time to fully enjoy it during retirement?
People work their whole life so they can live comfortably when theyretire. After all those years of hard work some of us even feel that we deserve to retire rich.
You might even find yourself envying those who are born rich. It’s easy to think that theyhardly need to do anything to keep thestandard of living that they enjoy.
However, the rich have a line ofthinking that helps them hold on to their money and for those of us who weren’t born with a silver spoon, retiring rich may just be a dream.
The real trick however, is that we need to believe that our goal to retire rich is within our grasp, and it is, just as long as we know what to do, and stick with the plans that we’ve created.
We often think of richpeople as people who are flashy or glamorous. That is often true withcelebrities. However, most rich people do not drown themselves in glamour.
Infact, we come across seemingly normal people all the time in our daily lives who are actually quite wealthy. The oneswho are truly rich do not parade around their riches. They usually live quite simply.
Simple living today will help you retire rich tomorrow. When you are happy with a simple lifestyle, you accumulate a lot of savings by avoiding unnecessary expenses. Making key lifestyle decisions could lead you down the path of having more than what you need for yourretirement.
Planning ahead is one key to help you retire rich. Of course plans are useless when they are not put into action so your retirement plans should be something that is attainable. While it is all well and good that you know how retirement planning works, it is best to consult a retirement planning expert to help you set realistic goals.
One of the secrets of the rich is that they seek advice from professionals on matters, like their financial plans, where they do not possess expert knowledge themselves.
Financial experts would saythat you need to have at 1 million USD or at least 75% of your pre-retirementincome in order to retire comfortable and be financially secure during yourretirement. It’s no secret that you would get nowhere near that figure if your only foreseeablesource of retirement income is your social security.
You have to build a nestegg for your retirement. Starting to save for your retirement early on allowsyou to accumulate more for your future so you can retirerich. You could take advantage of the 401(k) plans and the IRA.
If you are 35 years out from retirement and you magically able to be sitting on $200,000 that you could invest and make an average rate of return of 7% per year, year after year, and you didn’t contribute a single dollar more to your retirement savings by the time you retire you would have an annual income of approximately $95,000 assuming that you’d live another 30 years drawing from your retirement fund.
You could hit that same target of $95,000 a year approximately if you had $40,000 to start with, and then deposited $1,000 a month for the entirety of the 35 years you were saving for retirement and making an average of 7% on your money each year.
If you want to retire wealthy, it is not enough to allocate a portionof your present income to savings and pension plans. You have to take somecalculated risk. Investing in stocks is a risk; however, if you find the rightone to invest your money in, you could be rolling in cash by the time youretire.
Avoiding debt is another thing that you’re going to need to do to retire rich. This means living within your means and being happy with what you have. This is age old advice, but when you ask your friends, it’s shocking how many people are living paycheck to paycheck. On the flip side of the coin, richpeople purchase using cash instead of credit cards and this avoid the whole debt situation right from the start. Why use your money payinginterest when you can pay your purchases directly?
Many of us work hard each day, but working harddoes not necessarily lead to high pay or salary. You could put all your effortinto your job and still receive a basic salary. Working smart will help you retire wealthy. There are many legal, alternativeincome-generating activities that you can do where you do not have to exert asmuch effort. You have to think outside the box and in no time you will be onyour way towards retiring rich.
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