How to Become a Millionaire in Your Retirement Years – something we would all like to know right?
Becoming a millionaire after you retire isn’t an easy financial task. Fact is, if it had been your plan to be a millionaire (or billionaire for that matter), by the time you reached 62, you should have accomplished it already. But not everyone is money conscious while raising a family, working a job or two, and just plain living life. Suddenly, retirement rolls around quicker than you thought it would, and you realize you didn’t save up enough to live on without relying on that weekly or biweekly check.
Should that happen, you do have one very good option so long as you’ve owned your primary residence for a long time and been paying on the monthly mortgage religiously. That is, a reverse mortgage.
Basically, a reverse mortgage taps into all that equity you’ve been building up for decades and allows you to stay in your home until your die or decide to sell. You can take the money in monthly disbursements or in one lump sum—money that you can invest in something like Bitcoin, for instance, which has enjoyed an average 200 percent annual return since its inception. Learn more about the ins and outs of reverse mortgages here: https://reverse.mortgage/how-does-it-work.
How to Become a Millionaire in Your Retirement Years
But there’s more than just one way of making lots of money after retirement. According to a recent report, while lots of working people see retirement as the time when you stop making a paycheck and instead, live off your 401K savings plan, it also happens to be a time when you can build considerable wealth.
It is, however, something that takes hard work, nerves of steel, and commitment. Here are five ways you can become a millionaire after retirement.
Don’t Stop Investing
Making that first million is said to be the hardest million you’re ever going to make. This can truly be the case when you’re making long term investments. That said, if you reach retirement with a considerable “nest egg,” you can become more aggressive in your investment practices.
For example, if you have $1 million between Social Security, your pension, and other investable assets, you can reach $2 million over the course of 20 years at an annual rate of four percent. This even takes into account making the occasional withdrawal from your accounts from time to time.
Start Up a New Business
Relatively speaking, if you’ve decided to retire at 62, or been forced to retire, but still enjoy good health, you might be too young to be hanging up your spurs. This is why many folks in their 60s actually decide to go back to work somewhere else, or start up their own new business.
Says Thebalance.com, the best way to make millions in retirement is to start a business you love and can be passionate about. Case and point: Colonel Sanders, founder of Kentucky Fried Chicken, didn’t franchise his business until he was 62 years old. By the time he was in his seventies, he was a multi-millionaire.
If it’s your plan leave millions for your heirs, investing in life insurance is one of the most efficient ways to accomplish this. One of the main purposes behind life insurance is to provide for your family in the event of your premature death. But you can use Whole Life Insurance as a tool to enhance your savings portfolio.
By purchasing this when you’re still young, the premiums you invest over the course of your life could result in your heirs receiving millions of dollars upon your death. You can also use life insurance to build up wealth which you can enjoy in your retirement years.
Never Stop Working
You are now living in the “gig economy.” Healthy Americans in particular, are also working longer than ever before. By working well into your 70s and even 80s, you can build up an awful lot of wealth over the course 20 years or so.
If you’re making $100,000 per year at age 65, and continue to work earning only half that, you can quite easily save up $500,000 in cash over 10 to 15 year period. If you invest a lot of that cash in something aggressive like cryptocurrencies, you can double, triple, or even quadruple that amount.
Once you retire with a good amount of savings to support you, you can increase your wealth by packing up the house and moving to a cheaper state like Texas. Or you can sell your existing house, and move into something smaller, and less expensive to keep up. Also, if you have Medicare, you can save thousands on medical expenses. A proper tax plan can also save you thousands every year at tax time.
A good rule of thumb is this: if you can manage to save $10,000 per year for 20 to 30 years after your retirement, and you continue to invest this money properly, you can easily create an extra million if not millions of dollars.
How to Become a Millionaire in Your Retirement Years is a featured