Retirement might seem far away, but it when it arrives nobody ever complains about having too much money. Some people even question whether a million dollars is enough. Here are 10 steps to retire a Millionaire.
1. Set the Goal
Nobody plans to fail, but plenty of people fail to plan.
2. Start Saving
If you don't save, you'll never reach your goal.
3. Get Aggressive
Studies have shown that the majority of the returns generated by an investment are dictated by the asset-allocation decision.
4. Prepare for Rainy Days
Part of long-term planning involves accepting the idea that setbacks will occur. If you are not prepared, these setbacks can put a stop to your savings efforts.
5. Save More
Your income should rise as time passes. Every time more cash comes in to your pocket, you should increase the amount that you save.
6. Watch Your Spending
To maximize your savings, you need to minimize your spending.
7. Monitor Your Portfolio
There's no need to obsess over every movement of the Dow. Instead, check your portfolio once a year.
8. Max Out Your Options
Take advantage of every savings opportunity that comes your way.
9. Catch-Up Contributions
When you reach age50, you are eligible to increase contributions to tax-deferred savings plans.
10. Have Patience
The power of compounding takes time, so invest early, invest often and accept that the road to riches is often long and slow.