2 of 16

Write now Article Tools

A small amount of money, equal to the cost of a latte per day, invested in a stable mutual fund will grow to provide a foundation for a solid retirement income. Wealth is built long-term through basic, easy-to-follow plans. Here are tips to help you build the wealth you need for a secure retirement:

#1 Understand Your Life Stage

If you're young, begin setting aside small monthly amounts of money. Sacrifice financially in order to keep your expenses low and generate the highest possible amount of savings. If you work for a company that offers matching to your 401(K), take advantage of it and set aside the maximum.

If you're older, understand where your money flows by creating a simple home budget and don't worry about trying to strike riches through the lottery. Set aside your pennies and they, too, will grow. Make sure you develop a skill that has monetary value to supplement your income or guard against layoffs in your 50s and 60s.

#2 Forget What Others Think

Do you see your friends buying new cars or buying cars for their children while you drive a car that's 3 5 years old (or older in our case)? Does investing in a solid mutual fund or other investment vehicle mean you'll have to forgo new furniture for the next few years? Or do you need to explain to your kids or yourself why you don't need a new plasma television? If so, that's fine. Status symbols are not wealth builders. If you can't pay cash and have enough money left to invest for your retirement then you don't need the item.

#3 Get Expert Advice

Sit down with a financial adviser who cares about your situation and your retirement needs. Interview them and ask them why they chose their profession. The more passionately they talk and the more interested they are in you, the more likely they will work to serve your interests and not just put products in your portfolio that provide them a high commission.

I actually fired one financial adviser who talked my wife and I into an annuity through Allstate when I was in my early 40s. It was not a wise investment vehicle for my age. He wasn't being dishonest, but he called us less than once a year and he took us to lunch when he wanted to sell me a product that would benefit him more than me.

#4 Educate Yourself

www.Investopedia.com and Motley Fool are two web sites that offer practical, easy-to-follow advice where you can easily educate yourself using free investment tutorials. Bloomberg.com is a financial news service where you can get a solid overview of the day's financial

• 1
• 2
• next page >>

Add your voice

Know something about How to maximize your retirement income?
We want to hear your view. Write now!