Top 10 Guaranteed Ways to Retire Rich

Retiring comfortably. — never mind wealthy — may seem out of reach to many people, given current savings rates.

Don’t let those fears scare you. With a little advance planning and self-discipline, you can have a golden nest egg at retirement. Here is a step-by-step plan for getting there.

"Spend less than you earn"

The formula for retiring rich actually starts with putting money in the bank. Social Security benefits alone won't be enough to make you live well during your golden years.

"Start saving early"

Thanks to the power of compounding interest, a little money saved now can go a long way at retirement time.

"If you start late, make up for lost time"

Maybe you’re 55 and think you’ve missed the window of opportunity to retire rich. Don’t wave the white flag just yet!

"Don’t leave free money on the table"

If someone tried to hand you $100, would you say no?

"Minimize your taxes"

When investing your retirement money, use tax-sheltered accounts such as IRAs and 401(k) plans whenever possible.

"Take a little risk"

You could put all your money in bonds and sleep well at night knowing you’ll probably never lose money. But with that approach, you’re not going to retire a millionaire either.

"Stay informed about your investments"

A smart risk may be investing in an emerging market fund. A dumb move may be pouring your life savings into a speculative currency.

"Break free from the herd"

When the stock market crashed amid the coronavirus pandemic, some people likely freaked out and sold their investments.

"Work longer"

Work longer, or at least wait a few years to file for Social Security.

"Maximize your income potential"

Finally, if you want to retire rich, you need to maximize your earnings. That means no more settling for a dead-end job that pays pennies.