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Becoming a millionaire is no longer a question of luck, celebrity, or inheritance. According to Fidelity Investments, there’s been a 41% increase in people joining the Millionaire’s Club just based on what’s in their retirement accounts! These aren’t actors or doctors or financial gurus. These are regular working folks who share only a few common traits: they plan for the future, they save what they can, and they stick to it.

In a booming economy with peak employment and millions of unfilled positions, employers are competing now more than ever for workers. This is putting pressure on employers to offer more and more competitive benefits packages, particularly 401(k) and other retirement accounts. When coupled with individual retirement planning–whether through Roth contributions, personal stock trading, or property investment–middle-class workers are finding it easier and easier to retire in style.

And they’re not doing it with six-figure salaries!

According to Investopedia, an employee with a $50,000 annual salary at age 33 can retire with over a million in his account with a few simple steps:

  • contribute at least 5% (and utilize an employee match) toward a 401(k)
  • utilize a Roth IRA to the tune of at least $4,000 a year (8% of total salary)
  • sit back and enjoy the average 7% return over the next 34 years

By age 67, this employee would have more than $1.1. million in retirement. And that’s not a best-case scenario. It assumes zero salary increases, it ignores other possible assets, and it projects an average market return.

For those who have the salary but not the plan, now’s the time to invest. Where, how much, and for how long depends on your age, income, assets, and retirement goals, but the options are endless. Whether you’re on a fixed income or could afford to redirect some disposable income toward five-, ten-, or even 20-year investment opportunities depends on how much you’re willing to set aside and how long you can afford to wait and watch that investment mature.

At Roberts Tax and Retirement Planning, we’ll draw up a roadmap for your long-term financial success and help you put it into action. We work with you directly to create a customized plan that accomplishes the goals you set, not the goals we think you should have. We’ll lay out different types of plans and walk you through the financial realities of those plans in the short and long term to make sure there are no surprises.

To hear more about how Roberts Tax and Retirement Planning can help you plan for a better future, contact us online or call (480) 270-2802.

We look forward to talking with you!