How To Retire A Millionaire
So many people want to know how to retire a millionaire. A million dollars is a lot of money by any standards, but it is definitely not out of reach. Simply follow these steps and you will be able to retire with a million dollars or more.
- Decide how long you have until you retire. Look at your situation and set a date you would like to retire at. It may be five years down the road or thirty; no matter how long you have, it is still possible to retire a millionaire.
- Use a retirement calculator to find out how much you need to save every month. Simply enter one million as how much you would like to save, the number of years you have until retirement and the interest rate you expect to get from your investments. Around 10% is a reasonable expected interest rate. The calculator will then tell you exactly how much you need to save every month in order to retire a millionaire.
- Cut down your expenses so you can save the most money possible. Now that you know how much you need to save every month, start cutting down your monthly expenses so you can start investing. Downgrade your cell phone plan, cut down on eating out and find a lower car insurance policy. Saving every dollar you can now will put you that much closer to retiring a millionaire.
- Diversify your investing portfolio to make sure you do not loose your savings before retirement. You have heard it many times over but it must be stated, diversify where you invest your money. If you put all your money in one place and that market drops just before you retirement date, you could lose everything you worked hard for. So find several different markets to place your monthly savings.
- Get out of debt. Make sure you are completely debt free by the time you retire. If you retire with a million dollars in the bank and have five hundred thousand dollars in debt, you did not retire a millionaire. Debt eats away at your purchasing power, so get the monkey off your back before you go into retirement.
- Keep saving and investing. Whatever you do, continue to save and invest month after month. Try to remember that emergencies will happen and the stock market will go up and down, so do not stop working toward retiring a millionaire because of these things. Never quit working toward your goal and you will be able to retire a millionaire.
Posted on: Apr. 01, 2010