12 Important Steps to Retire as a Millionaire

Updated: Apr 8, 2021

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Key step in Active Living is to set a successful Retirement Goal and all it takes for that is to Invest at the Right Time and at the Right Place.


Having a big rich portfolio is a retirement dream for many people. But, to make that dream come true requires some serious time and effort. Although success cannot always be guaranteed, but these 10 steps outlined below will help you achieve your objective.


Set a Goal: We are sure about the fact that nobody ever must have had plans to fail, but there have been plenty of people who have failed to plan. But one thing for sure, its never too late. Setting your Goals makes it easier for planning things the right way. And this perspective has not only been useful in the aspect of the topic but in general wherein great leaders, athletes, businessmen, investors etc. have thought over and planned to reach extra ordinary goals in life. To retire as a millionaire, the first thing you need is a proper retirement plan for the long haul.


Start Saving: To reach your goal, you need to start saving. There have been instances wherein far too many people never even start to save. If your employer offers a 401(k) plan, enrolling in it is a great way to put your savings on auto-pilot. Simply sign up for the plan and contributions will be automatically taken out of your pay check, increasing your savings and decreasing your immediate tax liability.

Always have an emergency fund at the ready for unplanned expenses.


Finding the monies to invest shall always be a challenge, particularly when you’re young, but don’t let that stop you from pursuing future riches. The earlier you start at a younger age, the more time your money has to grow.


Get Aggressive: Whatever your investing is your hard earned money and it is this effort that will take you to your goal, hence always keep a tab on your asset allocation. If you are looking to grow your wealth over time, Invest in instruments which are more equity linked as fixed-income investments such as annuities, which offer fixed payments that can neither grow nor shrink, will never give you the desired outcome because inflation might take a big chunk out of your savings.


There have been many researches and studies have shown that the majority of the returns which are generated by an investment are dictated by asset allocation. Investing in equities entails more risk, but is also more likely to lead to greater returns. And hence it is always suggested to start investing early because the risk associated with it is much less as it would be 10 years hence for a person aged 25 since there would be many unplanned expenses associated with it. Asset-allocation strategies can help you learn how to make picking the right mix of securities the core of your investing strategy.


Prepare for Unexpected Turnarounds in Market: The market can many a times take an unprecedented turn and result in downfall. Part of long-term planning involves the perspective of accepting setbacks will occur. If you are not prepared, these setbacks can put a stop to your savings efforts. Always keep emergency funds in hand to mitigate the effect of the arising bumps in the road.


For many who do not have much knowledge or cannot predict which way the market might move, start taking out their investments at a loss when the market gets into a downfall. Infact, whenever the market goes in a downfall, either one should know when to take out the monies and book profit and invest again when the market bottoms out or else Invest more at a lower rate so as to reap more profits when the market climbs back.


Save More Every More: The best way to plan your goal is to set the timeframe for retirement and plan additional investments every year as your income will rise with every passing year. The key to reaching your goal as quickly as possible is to save as much as you can.


Keep Tab on Your Expenses: Vacations, cars, kids, and all of life’s other expenses take a big chunk out of your pay check. To maximize your savings, you should minimize your spending. Buying a home is always an investment for future and living a lifestyle that is less funded by credit cards are necessities if you want to boost your savings. Keep a tab on your loans and especially credit cards which have a huge delayed payment charges accrued with it.


A Key step in Active Living is to set a successful Retirement Goal and all it takes for that is to Invest at the Right Time and at the Right Place.


Having a big rich portfolio is a retirement dream for many people. But, to make that dream come true requires some serious time and effort. Although success cannot always be guaranteed, but these 10 steps outlined below will help you achieve your objective.


Make Use of Discounts offered by Banks and Websites: The digital revolution has brought in a lot many options where in accrual of points as well as offered discounts by banks, websites, flight bookings etc can give you benefits. Many a times the points accrued are forgotten. Make sure to utilize the points for certain upgrades or further discounts.


Max Out Your Options: Take advantage of every savings opportunity that comes your way. Make the maximum contribution to tax-deferred savings plans, then open up a taxable investment account, too. Don’t let any chance to save get away.


Keep a Check on your Income Tax: One thing is to ensure that your contribution to Income Tax and ITR Filing is done every year on time. To have a good investment portfolio keep track of the maximum investment that you can do to reduce your income tax as much as possible.


Be Patient: Get-rich-quick schemes are usually just that—schemes. The power of compounding takes time, so invest early and often, and accept that the road to riches is often long and slow. With that in mind, the sooner you get started, the better your odds of achieving your goals.


Follow 50-30-20 Rule: The easier way to stay invested and increase the limit for investment is to follow the 50-30-20 rule. The rule states that out of the net monthly salary that you draw, 50% of the salary should be directed towards all your Needs that are needed every month, 30% of the salary towards your wants and 20% should be directed towards Investments.


Diversify your Portfolio: Getting returns on investment is never on luck, but involves proper study of the portfolio. Never put all your money in one stock / mutual fund but diversify the same in different instruments. It will help minimize the losses incase of any unprecedented downfall.


With every passing age, money never gives satisfaction as there are impending increasing expenses. One most important thing for an active living is never to compromise your present. However little steps and efforts can help you in reducing your expenses and resulting in more savings.


These 12 steps shall surely help you in planning for a better tomorrow. We would surely like to see your comments and suggestions on the same as it would always help us creating better articles on new topics.


We at 360activeliving would seek love to see your response on any additional point that has helped you achieve your retirement goal.


By - 360activeliving