Becoming a self-made millionaire later in life requires persistence, tenacity and an ample dose of confidence. But mostly, it’s about taking the right steps.
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Powered by Money.com – Yahoo may earn commission from the links above. GOBankingRates spoke with self-made millionaires Josh Miller, the owner of Clean Carpets, and David L. Blain, CFA and chief executive officer at BlueSky Wealth Advisors, to talk about the steps they took to become rich in their 50s.
Below, they share their journey to reaching wealth:
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“Achieving millionaire status in your 50s is possible with strategic planning, disciplined saving, and smart investments,” Miller said. “I started Clean Carpets with a modest investment and a vision for service excellence. Over the years, I focused on delivering quality, building a loyal customer base, and reinvesting profits back into the business.”
From the beginning, he prioritized quality service and customer satisfaction. This helped him build a strong reputation and led to repeat business and referrals, which are crucial for sustained growth.
“Instead of drawing large salaries or spending profits, I reinvested them into the business,” Miller continued.
This allowed him to expand services, hire skilled employees and purchase advanced equipment, contributing to increased revenue.
As his business grew, Miller explored additional revenue streams such as offering maintenance contracts, selling cleaning products and providing consultancy services.
“Diversifying income helped stabilize finances and reduce dependency on a single source of income,” Miller said.
“I dedicated time to learning about financial management, investments, and market trends,” Miller noted. “Stay informed about financial trends and opportunities. Continuously seek knowledge through books, courses and financial advisors to make informed decisions.”
He said this knowledge helped him make informed decisions about saving, investing and growing his wealth.
Another step Miller took involved investing in real estate, as well as purchasing rental properties that provided a steady income stream and appreciated over time.
“Real estate became a significant part of my wealth portfolio, offering both passive income and long-term capital gains,” Miller said.
“In my 50s, I focused on maximizing tax-advantaged accounts like my 401(k) and IRA,” said Blain. “I made catching up on retirement contributions a top priority and contributed the maximum amount allowed.”
He said he also took advantage of any employer match offered.
“For those without access to employer plans, open an IRA and fund it as much as you can,” Blain said.
Miller agreed to take full advantage of retirement accounts like 401(k)s or IRAs.
“Contributing the maximum amount not only reduces taxable income but also accelerates your retirement savings,” Miller said.
“I also rebalanced my investment portfolio to maintain the right asset allocation for my age and risk tolerance,” Blain added. “I moved some money into more stable value and income-producing investments.”
He noted that while in your 50s you still want growth, you also need to protect what you have.
One of the top steps Blain advised taking was meeting with a financial advisor.
“They can help ensure you’re on the right track for retirement and make recommendations for your specific situation,” Blain said. “A professional’s guidance is invaluable for making the most of your 50s financially.”
For example, they may suggest annuitizing a portion of your portfolio to generate lifetime income. Or they may recommend long-term care insurance if that’s a concern.
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According to Miller, creating a detailed financial plan outlining your income, expenses, savings, and investment goals is key.
“Regularly review and adjust your plan to stay on track,” Miller said.
Experts agree that it’s also important to focus on acquiring assets that generate income, like rental properties, dividend-paying stocks or bonds.
“These investments provide a steady cash flow and can grow over time,” Miller said.
“Pay down high-interest debt as quickly as possible,” Miller advised.
He noted that reducing debt frees up more money for savings and investments and decreases financial stress.
Reaching millionaire status will require you to surround yourself with people with similar financial goals and offer support, advice and opportunities.
“Networking can open doors to new investments and partnerships,” Miller noted.
Above all, Miller emphasized it’s important to ensure your pursuit of wealth doesn’t come at the expense of your health or relationships.
“A balanced life leads to better decision-making and long-term success,” Miller said.
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This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: 13 Steps I Took To Become Rich in My 50s
