If you want to retire a millionaire, then the easiest way to get started is by looking into how other retired millionaires make their mark. So today, that’s exactly what we’re going to do. Let’s get into the top three secrets of retiree millionaires.
Image source: Getty Images
Discipline
When it comes to creating the goal of retiring as a millionaire, discipline is the biggest key. Millionaires need to work tirelessly to achieve their goals, and this means remaining persistent and dedicated towards those goals. Even amidst setbacks.
That means creating strong goals that are coupled with financial discipline. Those goals therefore need to be specific and achievable, not just “make a million dollars.” Creating a plan with a financial advisor is therefore key if you want to become a retiree millionaire.
The other key is financial discipline, not just during retirement but in all the years up to it. Budget, save, invest wisely, and always avoid and pay off debt. And if you’re ever tempted to spend, remain focused on those goals. That self-discipline will be the key to achieving your goals, so stay focused and disciplined!
Invest in yourself
I don’t mean a massage. Retiree millionaires will also be those who invest in themselves when it comes to learning more about their investments. These millionaires are lifelong learners who are likely to remain curious, but about topics that interest them, and their finances.
This allows them to take calculated risks in terms of their finances. By taking on courses in their retirement to learn more about investments, they’ll be able to confidently make investments that potentially would have seemed too risky before.
This allows them to create a more diversified portfolio, remain adaptable and flexible in their investments, and bounce back even from setbacks. It also will allow these retiree millionaires to remain on top of market trends, and know when to get in, as well as when to get out.
Think long term!
One of the best pieces of advice comes from perhaps the biggest and best investor out there, and that’s Warren Buffett. Long-term investing in value stocks has long proven to be the best way to create millionaire status. However, that’s easier said than done.
That’s why if you’re newer to investing a great option is to find a diversified long-term exchange-traded fund (ETF). Look for ETFs that have been around for at least the last decade, showing long-term growth. The easiest method is to find one that follows a major index, such as the S&P 500. If you find one that offers a low management expense ratio (MER), as well as a dividend yield, then you can basically invest in the entire S&P 500, for a fraction of the cost.
A great option these days is the Vanguard S&P 500 Index ETF (CAD-hedged) (TSX:VSP). This ETF follows the S&P 500, offering a 1.3% dividend yield as of writing. Shares are already up 7.5% year to date, surging in share price during this recovery. And with a low MER, you can look forward to creating long-term income while spending little to have a group of managers watch it for you.
So think like a millionaire! And get started with this ETF today.
