4 Ways to Retire with $1 Million

While making $1 million is not an unrealistic target for retirement for employees of any organization, the truth is that there are a number of hurdles in the form of fees, taxes and penalties that can prevent you from getting there.

That said, here are 4 ways that can get you there:

#1: Start young

Start saving from your first job until you retire at the age of 65. It’s for the simple reason that the later you put off saving, the harder it gets to reach that figure of $1 million.

#2: Reduce taxes

One of the best ways to reduce taxes is by saving in a traditional IRA or 401k plan as this will reduce your current tax bill and allow your savings to grow until retirement. In fact, you can pre-pay your taxes using a Roth IRA or 401k account and you won’t have to pay additional taxes when you withdraw the money when you retire.

#3: Reduce expenses as much as possible

Simply put, the only thing that you can control is how much you pay for stuff. It is for this reason that it is a good idea to go only for low-cost investments regardless. Experts go further in adding that going in for index funds makes much more sense for most people compared to actively managed funds since there’s a big difference between paying out 0.1 or 1 percent.

#4: Have your employer contribute

If your employer will make contributions for your 403b or 401k plan, you can get much faster to 1$ million than you can imagine or by saving on your own. If you fail to do this, then you’d just be giving away free money as a result.