How to Retire Wealthy

Time is the enemy.

The biggest problem most people face when saving for their retirement is not starting soon enough. Most of us don't plan ahead far enough to ever live or retire with any kind of wealth. It does not have to be like that. If you start when your young, at the beginning of your working life (about 40 years) you can retire wealthy. If your employer offers a 401K plan, it can give you an even greater advantage. Because of the contributions often given by employers, your retirement savings can multiply even faster. This will make it much easier to retire wealthy. If you save a modest amount starting when your 25 years old, saving for 40 years, you could easily have a large retirement savings. If you wait just 5 years it becomes more difficult, you would then need to save even more to make up the difference. Try a time value calculator to determine what your own needs are. Also try several different scenarios to see the importance of time and the benefit of an early start with regards to retirement savings.

Earning more (the right career)

Earning more is also an option, but how do you do that? Finding a good paying job with room for growth is one way to earn more. Most good paying jobs require a college degree or specialized training. Make sure you pick a career that suits you, some people make career changes in the middle of their lives, however staying on the same path should benefit you because of the experience you will gain in a particular field. Years of experience is very important to most employers if and when you seek a position with another employer in the same field. Experience may also give you some leverage when it comes to salary negotiation. More you earn the more you can save and retire wealthy.

Go into business for yourself

Start your own business and leave the corporate world behind. Starting your own business can be risky, however, it may be one of the best ways to become wealthy and retire wealthy. Many Americans start their own business with a dream of financial freedom, you can do it with the right plan. Do your home work before investing time and money. Also, don't start a business you know nothing about, stick with what you know or something you can easily learn. Home based businesses are generally safer. A home business usually has a smaller investment and no store or building to lease. You can also so get some tax advantages associated with owning your own business.

Set Goals

Make sure with whatever you choose to do, you set realistic goals for yourself. Re-evaluate your goals from time to time to make sure your on track. Make sure you don't live beyond your means, watch your spending. Don't buy a bigger house than you need or can afford and don't waste money on expensive things you don't need, this makes it harder to save money and retire wealthy. Toys are fun, but do you really need them? Be careful and keep your retirement years in mind. Good luck and good savings.

Trickle Down Economics

Let's take a look at "trickle down" if a person rich or poor spends money, someone benefits, but let's look at it from the top down. Some wealthy person owns their own business or multi businesses and employs x number of people. Those employees pay taxes and spend money on all the necessary life expenses and someone else makes their income from that money. Also rich guy may own a home or two or three, and when he buys a home or a car, money exchanges hands more taxes get paid and income earned and so on. What about maintenance on his house and cars? Painting, roofing, carpet cleaning and floor care, house keeping and for the cars auto mechanic, car wash, tires. The list goes on and on, so I really don't think anyone should be upset when the rich get richer, because they are most likely to spend more of it and have a positive financial impact. All the companies that help maintain the possessions of the wealthy receive a benefit and in turn employ others who also spend money and pay taxes. So, a wealthy person automatically redistributes wealth every time he spends money. The creation of wealth is the reason why most people have a job in the first place. Companies don't start out of thin air, they are started and run by people, and if they are successful companies, someone might have become wealthy because of it. That wealth is spent and maybe that rich guy decides to start another company and the cycle of trickle down starts all over again, so thank some rich guy for the fact that you even have a job. All of the places you spend your money, someone is making money. You are supporting someone’s job and business. The economy runs well when we spend money, the more we spend the more everyone benefits. TRICKLE DOWN DOES TRICKLE DOWN. It is an economic fact, even if the rich get richer and poor get poorer, money still flows from the top to the bottom. I didn’t even cover all the ways the flow of money can impact the local economy where a businesses are located. If an area has businesses, it has employees who spend money on food, housing, transportation, entertainment and so many other things. So think about the benefits of big business improving income for many other smaller businesses nearby. This is not only done by creating and keeping jobs, many businesses do business with each other and this improves the economic situation for everyone, so go spend some money.

Recession Proof Business!

Logic tells us that nothing is 100% recession proof, however with some types of businesses you may be able to reduce your risk to such a small amount, it is virtually recession proof. Most likely the best type of business to own would be a network marketing business or selling a product that the public can't do without. Examples of this would be food, clothing, gasoline and cellphones just to name of few. Now, some things we can cut back on or budget but we can't eliminate or part with some of the things that would dramatically change our lifestyle. We get accustomed to certain things and find it difficult to part with them.

Owning your own business and having freedom from punching a clock and long commutes is the "American Dream" but finding the right business isn't always easy. Some require huge investments to start and can be very risky and many start up businesses are doomed to fail before they ever make the owner a fair living.

A diversified product and/or service type business can help avoid loss of business during tough times. If you have what people need and want you should always be able to keep a majority of your loyal customers. Even during hard economic times, people with continue to pay for the things they feel they absolutely need.

To start your business without too much financial risk, it is best to find company with a sound business model and a low initial start up cost. If you invest your savings or 401K to start a business, you could put your retirement security at risk.