Apr 19, 2024
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Chasing your financial goals for retirement is an intensely personal journey full of questions only you can answer: Do you plan to travel? Are your pursuits pricey? How long do you expect to live? Will you have enough to cover all those things and the escalating costs of health care?
Plenty of savers just want a simple target, a big round figure. That may explain why, for so long, $1 million was the standard target for would-be retirees.
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But as inflation and health care costs take bigger bites, $1 million may not cut it anymore.
According to a study by the Economic Policy Institute (EPI), the average yearly earnings of those in the top 10% of Americans were roughly $183,511 in 2022, the most recent data available.
Depending on your current income and savings each month, accumulating at least $2.5 million in retirement savings will position you to crack the top 10%. That number may seem daunting, but it’s doable — with enough planning and discipline.
Here are three ways to boost your retirement savings.
Diversify your investments
Holding a diverse investment portfolio is a great way to boost your savings.
Alternative assets – those that don’t belong to traditional investment categories like stocks and bonds – can reduce risk and deliver higher returns, especially during times of market volatility and high inflation.
If you’re looking to diversify your portfolio but aren’t sure where to begin, start by browsing some of the top alternative investments this year.
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From art to commercial real estate, and even fine wine, there’s something for every investor.
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Get expert advice
Part of growing your retirement fund is knowing how to approach your daily finances in the first place. If you’re unsure where to start, don’t worry — that’s what professionals are for.
WiserAdvisor’s easy-to-use platform connects you to the best financial advisors based on your unique needs. The best part? It costs nothing to check out your matches and decide which adviser is right for you.
With no commitment necessary, you can browse your adviser matches with WiserAdvisor’s comparison tool and book a free consultation.
Save on your necessary expenses
There are many ways to grow your savings quicker, but re-thinking your current expenses is a great place to start. By cutting back on your essential costs, you can easily make room for a bit of extra savings.
Take something like car insurance, for example — by browsing for rates, you could slash your monthly bill and free up hundreds of dollars for your retirement fund.
BestMoney.com is an auto insurance marketplace where you can browse and compare between the best auto insurance rates in your area.
Saving extends beyond car insurance. Official Home Insurance is a platform that allows you to compare the best home insurance policies available in your area. Simply provide some brief information about yourself, and Official Home Insurance will navigate through leading insurers to get you a quote in less than 2 minutes.
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Spending less on insurance will go a long way once you’re retired, too, by helping you hold onto more of your savings each year.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Choose the best account to grow your cash
Holding cash is an important part of financial security in retirement. With rising inflation, it’s important to ensure your savings grow as much as possible over the years.
Acorns- an automated saving and investing app making growing your savings simple.
With Acorns, you can save money when you spend on things you were bound to anyway. By linking your bank account to the app, your purchases will be rounded to the nearest dollar, and the spare change will automatically be invested in a smart portfolio.
Another avenue to boost your retirement fund is through a Gold IRA. Opening a gold IRA with the help of industry leader Goldco allows you to invest in the physical forms of precious metals while also providing the tax advantages of traditional IRAs.
Curious about whether a Gold IRA is right for you? Request a complimentary Gold IRA kit to learn more about how this alternative investment helps grow your savings while being historically known to hedge against economic volatility.
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If you want to grow your cash in real estate, look no further than Fundrise.Fundrise offers an exclusive opportunity to grow cash reserves through its eREITS. Unlike traditional publicly-traded REITs, Fundrises eREITS are available exclusively through its platform.
Each eREIT follows a district investment strategy, including residential and commercial properties or real estate loans, ensuring diversification within your portfolio. With eREITs, investors have the potential to enjoy consistent income generation, typically through quarterly dividends.
If you want to get creative while growing your portfolio, consider investing in paintings by iconic artists such as Banksy and Basquiat without the price tag.
Even if you don’t have a huge net worth, the online platform Masterworks allows you to invest in fractional shares of art without the price tag associated with buying art at auctions. To get started, all you have to do is sign up and start investing.
Get expert advice
Part of growing your retirement fund is knowing how to approach your daily finances in the first place. If you’re unsure where to start, don’t worry — that’s what professionals are for.
Advisor.com is an easy-to-use platform that connects you to the best financial advisors based on your unique needs. The best part? It costs nothing to check out your matches and decide which adviser is right for you.
With no commitment necessary, you can browse your adviser matches with Advisor.com comparison tool and book a free consultation with no obligation to hire.
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