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Moneywise
Updated Jul 3, 2025
The U.S. Department of Labor estimates you’ll need 70–90% of your pre-retirement income to maintain your standard of living in your golden years.
Americans expect they will need $1.26 million to have a comfortable retirement, according to a recent study by Northwestern Mutual.
Compare that to what many Americans have saved: a median of $185,000 for those aged 55-64, according to Federal Reserve data — a balance that may not be enough to last you.
The wise strategy to grow your wealth is not to sit passively on your nest egg, but to continue building it.
Here are three strategies that the richest Americans use — and you can borrow — to help get your nest egg to the size you need for a comfy retirement.
Leverage tax-deferred growth
The IRS has no age limit on how long you can continue contributing to an individual retirement account (IRA) contributions, and your money will continue to grow tax-free as you save. But there are still contribution and deduction limits to be aware of.
If you’re covered by a retirement account at work, traditional IRA deductions are phased out for married couples if your modified adjusted gross income (MAGI) is between $123,000 and $143,000. With a Roth IRA, that phase-out happens between $230,000 and $240,000.
For single filers, the range is $87,000 to $161,000. Fortunately, the IRA contribution limit in 2024 is $8,000 if you're 50 or older, up more than 14% from 2022.
While Roth IRAs are a key savings vehicle, you’ll also want assets that protect you from inflation and stock market volatility.
A gold IRA, for example, allows you to hold physical assets like gold, providing a hedge against both inflation and the ups and downs of the market. Although it will be subject to income tax, and will contribute to your taxable income upon retirement, a gold IRA can be a good risk-adjusted complement to a Roth IRA, which could be riskier depending on assets you hold inside.
If you’d like to convert an existing IRA into a gold IRA, companies typically offer 100% free rollover. Others might offer free gold, silver or other metals up to a certain amount when you make a qualifying purchase.
Thor Metals, for instance, offers $20,000 in free precious metals when you make a qualifying purchase. To learn more, you can download their free information guide.
When you’re feeling unsure about how to set up your retirement accounts, and how to meet a seven-figure savings goal, it’s time to call in a pro.
Professional advisors — like those at Advisor.com — can help you create a money management plan. Whether you’re looking to diversify your portfolio or grow your nest egg, Advisor.com connects you with experienced financial advisors who can help you reach your financial goals.
By partnering with a reputable advisor, you’ll gain expert insights into which alternative assets align best with your goals. Once you're matched, you can schedule a free consultation to discuss your financial strategy and explore the investment options available to best suit your needs.
Move to a less expensive part of the country
From 2015 to 2019, only 5.9% of people aged 65 to 74 chose to relocate, according to U.S. census data. But definite financial advantages lie in moving from a high-cost-of-living locale to a much less expensive one. As of the second quarter of 2024, the Council for Community and Economic Research found that the Cost of Living Index in San Francisco (the nation's fourth-most expensive city) is 167.4.
Meanwhile, Amarillo, Texas, one of the cheapest cities to live in, has a score of 83.1. If you want to stay closer to your hometown, a cost-cutting move is also entirely possible. RentCafe estimates that the cost of living in Rockford, Illinois is significantly lower than in Chicago — only 90 miles away.
Whether you stay or you go, one beneficial way to lower costs for your home is to shop around for a better deal on your home insurance.
OfficialHomeInsurance.com makes it easy to find the coverage you need without the hassle of calling multiple providers for quotes.
Shopping for a better policy is fast and easy: Simply fill out a few details about yourself and your home, and you’ll see get a list of quotes tailored for your needs. You could save an average of $482 a year.
A report by MarketWatch also found that Americans struggle to keep the monthly cost of car ownership below the recommended threshold of 10% of their monthly income. On average, we’re spending 20%. Lowering this expense can give you more funds to add to your retirement savings.
When you use OfficialCarInsurance, you can ensure that you’re cutting your insurance costs down to size.
Getting started with a quote is easy: When you enter your age, your home state, the type of vehicle you drive, and your driving record, OfficialCarInsurance will sort through the leading insurance companies in your area, including top providers like Progressive, Allstate and GEICO. You can then easily compare rates and choose the policy that best suits your needs and budget.
Invest a small portion of your portfolio in cryptocurrency
Yes, cryptocurrency has a well-earned reputation for volatility. But many financial experts say it is potentially profitable to invest in it, as long as you limit your risk exposure.
Working with retirees worth between $2 million and $10 million, certified financial planner Evan T. Beach told Kiplinger that crypto should typically make up no more than 5% of your portfolio. “Rich Dad, Poor Dad” author Robert Kiyosaki also has optimistic predictions for Bitcoin in particular.
On Nov. 29, 2024, he predicted, “Bitcoin will soon break $100,000.” On Dec. 4, 2024, the cryptocurrency surpassed that milestone, grabbing headlines worldwide. But he sees Bitcoin climbing much higher — potentially reaching $500,000 to $1 million.
For those looking to hop on the bitcoin bandwagon, new crypto platforms have made it easier for everyday investors.
For instance, Gemini is a full-reserve and regulated cryptocurrency exchange and custodian, which allows users to buy, sell and store bitcoin and 70 other cryptocurrencies.
You can place instant, recurring and limit buys on their growing and vetted list of available cryptos.
But if you're not ready to buy just yet, you can still invest in crypto with their Gemini credit card.
Moneywise
Moneywise Editorial Team
The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
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