You can be a millionaire retiree

If you are planning your retirement a valuable source of information and guidance is the New Retirement software plus their blog and Facebook group.

Following is an excerpt from a recent blog post.

What Does it Take to Be Among the Wealthiest Retirees? 

To be among the wealthiest retirees, it takes millions. However, it might be less than you think.

• To be in the top 1% for retirement wealth, you need to have a net worth $16.7 million
• The top 5% have an average of $3.2 million 
• The wealthiest 10% have $1.9 million

Retirement wealth drops significantly from there. 

• The top 50% have an average net worth of $281,000
• And, the poorest 20% have an average net worth of $10,000

Who Are the Wealthiest Retirees? 

You might think that the wealthiest retirees are trust fund heirs or high powered senior executives. However, the reality is that most wealthy retirees are regular people who had regular jobs. They just saved diligently and invested wisely over a long period of time.

What do wealthy retirees look like? 

A large research study found that: 

• The top five professions for millionaires are engineers, accountants, teachers, managers, and attorneys.
• They are college educated, but most graduated from public universities and state schools
• Only 20% of the millionaires received an inheritance
• A mere 15% of millionaires were in senior leadership when they were working
• 70% earned less than $100,000 a year on average when working

How do millionaires grow their net worth? 

Here are five key take aways:

• Millionaires used their company retirement 401k or other plan and saved as much as they could
• They also saved and invested outside of their company plan
• The wealthiest retirees invested broadly and did not focus on single stocks
• They started saving and investing early in their careers (Although, it is important to note that it is never too late. See 28 ways to grow wealth, even after 50)
• Consistency was key

Excerpt from New Retirement Blog