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FOX Business Maria Bartiromo andpersonal financeexpert Rachel Cruze recently shared a top strategy for making it happen.
Read More:Want To Make It to the Forbes Richest List?
According to Fidelity Investmentslatest retirement analysis data, the number of people achieving this goal is rising.
Fidelity notes these millionaires reach this level of retirement savings by starting early and contributing consistently over many years.
This extra money can significantly boost your savings over time.
Automated Savings
401(k) contributions are often automatically deducted from your paycheck.
You dont have to rely on willpower to set that money aside.
Boost Tax Benefits With a Roth Account
Retirement accounts come with contribution limits.
If youre 50 or older, youre allowed to contribute more.
If youre maxing out your 401(k), Cruze recommends also investing in a Roth IRA.
you could contribute up to $7,000 annually to an IRA or $8,000 if youre 50 or older.
Contributions to a traditional 401(k) reduce your annual income tax burden.
A Roth IRA lets your money grow tax-free and provides tax-free withdrawals in retirement.
An IRA is a good alternative If your employer doesnt offer a 401(k).
Once you max out your IRA contributions, taxable investment accounts provide additional opportunities for long-term growth.
She recommends starting early, consistently contributing 15% of your income, and avoiding dipping into the money.
With time and compound growth on your side, reaching that million-dollar milestone might be easier than you think.
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