Retiring comfortably is one thing. Retiring in the top 10% of the financial spectrum is another goal, and it’s more attainable than many people think.
With the right mix of planning, strategy and consistency, you can build long-term wealth that places you well ahead of the curve. Whether you’re decades away from retirement or playing catch-up, it’s never too late to shift your financial trajectory.
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Here’s how to make sure you are in the financial top 10% when you retire.
For anyone aiming to retire in the top 10% financially, it’s essential to understand what that actually entails. Knowing how much wealth top earners typically have can provide a clear target to work toward.
Some estimates suggest that retirees need between $970,900 least $1.9 million to join the top 10% financially by retirement. However, other experts said that the number should be even higher.
“You must have a net worth of about $2.63 million, including real estate, investments and retirement accounts, said Seann Malloy, founder and managing partner at Malloy Law Offices, LLC.
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Building long-term wealth is easier when you start young, thanks to the power of compound interest. But even late starters can make up ground with focused, strategic financial moves.
“Getting a head start is a big advantage,” said Sean McSweeney, chief advisory officer at Voyant Health. “If someone starts saving and investing regularly in their 20s or early 30s, they might end up near to or in the top tier by retirement merely by maxing out their retirement accounts with a small growth rate.”
Many people don’t begin saving seriously until their 40s or 50s. While it’s not too late, they’ll need a different strategy to catch up.
“That could entail saving a lot more money, cutting back on spending that isn’t essential, using catch-up contributions, or even moving to a smaller home or cutting back on other fixed costs to put more money into investments,” McSweeney said. “It’s not about being perfect; it’s about being bold and purposeful with the time you have left.”
One of the most effective ways to build retirement wealth is by taking full advantage of tax-advantaged accounts. These tools can help high earners grow their savings faster while reducing their taxable income.
