Once you get rich, you can use some of your money to guarantee a lifetime stream of income from an annuity product. That way, you’ll never have to worry about running out of that money you worked so hard to earn. “How to Get Rich Slowly” by Tom Sightings was recently published in U.S. News & World Report Money section. Mr. Sightings acknowledges that while there are a few exceptions who make billions of dollars quickly (think Mark Zuckerberg of Facebook fame), most people have to make careful decisions and wait to get rich. Even famed billionaire Warren Buffet didn’t make his billions overnight. He actually started working when he was still a kid and even began investing in stocks at age 11.
With these six recommendations for getting rich slowly, you can be well on your way to having a financially secure retirement. Begin saving money at an early age and invest that money early as well. It may not be common to start investing when you are still a child, but parents should teach their kids about saving money for the future and help them do just that. Once you hit your 20’s and have some money saved and start earning more, put some money into investments.
It is essential to sign up for your company’s 401k plan, or whatever retirement plan they offer. Sign up as soon as they allow you to and make the maximum contributions that you are allowed. If you happen to work somewhere that doesn’t offer a retirement savings plan, start putting money into a Roth IRA because you can take the money out later free of taxes. When your company matches your retirement savings contributions, make sure to put in as much money as they will match to take full advantage. Buy your company’s stock if they sell it to employees at a discount. This is a rare way to get discounted stock that most people won’t be able to purchase at the same price.
Sign up to automatically reinvest any dividends you earn in your savings plan, rather than have it paid out to you in cash. This is an easy way to make a big jump in your savings. Finally, the article offers two important tips that are helpful with financial planning. Don’t give up when it seems like you are in a bad spot and wait it out. People had some dire yearly retirement savings statements a few years back, but those who left their money where it was have gotten back the losses. Wait to use your retirement savings until you actually need them. They are meant to sit and earn money for you for decades. Resist the urge to use that money for a big vacation or purchase because you’ll be glad to have it when you retire. Part of your savings from 401ks, Roth IRAs, and other investments can easily be turned into an annuity to be used for part of your retirement lifestyle.
Written by Rachel Summit