Retiring a millionaire is not as hard as you think
So how do you get to retire a millionaire?
Don’t waste $700k!
Compound interest is your best friend when it comes to savings and investment. This is especially true when planning for your retirement.
If you invest $100 a month at 25 until you retire your pension fund hits the magic million number, providing you choose the right investments and manage it properly. Leave it ten years and start investing at 35 and you’ll only have $300,000 come retirement. You would have blown $700,000 just like that. And what would you have spent that $100 per month on?
This is because compound interest makes money from your money. So the $12,000 you accumulated from 25-35 is effectively $700,000 by the time you reach retirement age. Cool isn’t it?
The fact is that it is getting harder to retire and live comfortably throughout the western world. Many institutions are reporting that people have little put aside for their retirement with significant numbers having saved nothing. This is a bad state of affairs. A situation to avoid at all costs.
So how do you get to retire a millionaire?
First, you do two things.
- Use an experienced and competent financial planner
- Adopt the habits of millionaires
Financial Planning Advice
Sound financial planning advice is essential to achieving good wealth management including a fantastic retirement. Let’s be clear, holistic approach is the best approach. So you want a financial planner that can has access to all the financial products on the market and not just the ones he or she may have available from their firm.
Good financial planners will be able to select the best products for you. This will maximise your returns making those compound interest payments that little bit sweeter. The magic million numbers will come round sooner with a good planner at the helm.
To become a millionaire you must behave like a millionaire
Nearly every self made millionaire has adopted frugal habits. On their own they don’t have an impact, but when combined these habits put you on course to become a millionaire by the time you retire. Here’s why;
You adopt the right frugal mindset. This stops you wasting money on things you don’t really need, and concentrating on the things that bring long term financial benefits.
To perfect the right frugal mindset try and adopt these habits:
- Start Saving – As I have stated $100 a month at 25 makes things happen. Even $20 is better than nothing. Savings create opportunities especially when invested correctly
- Build a Success Relationship – Try and meet someone who has achieved notable success. You can volunteer or join a professional group. This will bring you into contact with driven, ambitious people, helping you adopt the all important mindset to become a millionaire
- Develop a New Skill – Spend 20 minutes a day adopting a new skill. The more skills you have the more opportunities to make money you will have. You will also have more productive use of your time
- Adopt a Frugal Mindset – Try and become more aware of what you buy. Where your money goes. Where possible only by quality products and shop around for the best deals. In the long run, this will save you money.
Retiring a Millionaire
Take your first steps to retiring a millionaire by talking to me, an award winning financial planner. My holistic, whole of the market approach will help you retire a millionaire. I will find the best investment vehicles and continue to monitor your funds to ensure they perform to their potential. No matter where in the world you are I can help.
Click here and complete the Call Back Service form. Remember, for every year you are not investing in a pension, you are costing yourself a lot of money in the future and this has a negative impact on your quality of life when you retire.
Source: CNBC.com
For more information, please contact Michele Carby at Holborn Asset Management on +971 50 618 6463 and on e-mail at [email protected]
