Claims that you can retire rich seem farfetched to some folks, especially those working what some perceive to be dead end, blue collar type jobs. Even then, these folks usually walk away with a pension that is quite good, almost good enough to help them maintain their current way of life upon retirement. Even if you do not make a lot of money, you can effectively retire rich if you start now and maintain the course. Read and we’ll explore some ways you can build and manage wealth now so that you can live as prince not a pauper upon retirement.
Fifty thousand a year doesn’t sound like a lot of money for many people, but it can be a sufficient amount of income if you live in areas where housing is much more reasonable and taxes are not all consuming. Areas of the USA that are particularly affordable include much of the Southeast and Midwest with many metropolitan areas in these areas featuring homes that still sell for about $100,000.
Wealth building is a long term strategy that must be followed over the years in order to not only create a comfortable retirement, but a lucrative one at that. This can include:
Fully funding your pension or 401(k) plan. With most companies now offering a 401(k) plan instead of the traditional retirement choice, every worker should not only be participating, but maximizing its benefits. If there is a company match involved, let’s say for every dollar you throw in your company contributes fifty cents, then you would be wise to maximize this match. Where else can you get a 50% return on your money? No where!
Getting an IRA. Even with a retirement plan in place, you can open up an IRA and contribute to that. If you are married, your spouse can contribute to his or her own account. Best of all, just like a 401(k) plan, your funds are not taxed until they are withdrawn. Conceivably, if you fully fund your pension and your IRA you can be put in a much cheaper tax bracket too. What a terrific wealth building advantage!
Your Home. Your home when it is paid off can be a significant part of your wealth upon retirement. In some areas of the country, home values have risen so fast that owners are sitting on a goldmine with their homes alone. Sell your home and retire in a less expensive area of the country and you’ve instantly created big wealth.
Together, all three options can create a rich retirement. Stay the course and you too can have a life outside of work that is rich and truly rewarding.
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