10 Ways To Become a Millionaire in Your 60s
People have wondered about how to become a millionaire for ages. For some, it might not be all that difficult to achieve. For others, it can seem like an insurmountable goal or an impossible dream.
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Truth be told, though, you can become a millionaire at any age — even in your 60s. You don’t have to be born into a wealthy family to do it either. Nor do you need to have earned a high salary during your working years — though it wouldn’t hurt.
If you truly want to become a millionaire, you need to save and invest aggressively, cut back on unnecessary spending and leverage your skills and experiences. In some cases, doing just one of these things could get you to where you want to be financially. In others, you’ll need to combine multiple things.
Here are 10 ways to become a millionaire in your 60s.
Maximize Retirement Contributions
“Achieving millionaire status in one’s 60s is challenging but entirely possible with the right strategies and a bit of late-stage aggressive financial planning,” said Dennis Shirshikov, finance professor at The City University of New York and head of growth at Gosummer.com.
One of the biggest things you can do is maximize your retirement account contributions.
“At this stage, individuals should maximize their contributions to retirement accounts, including catch-up contributions allowed under IRS rules for those over 50,” said Shirshikov. “For example, as of 2023, individuals 50 and older can contribute an additional $7,000 to their 401(k) on top of the standard $22,500 limit, effectively allowing for higher tax-deferred growth.”
Cut Back on Unnecessary Spending
Avoid purchasing things you don’t really need, especially if those items require you to dip into your savings or rely on credit cards. Before you buy anything, make sure it’s truly going to add value to your life. Say no to anything that doesn’t and put that money toward savings or investments instead.
“Let’s say you’re retired or close to being retired and you have $500,000 set aside. If you want to get to $1 million, spend your money like you did when you were working,” said David Bakke, financial expert at DollarSanity. “Don’t go nuts on travel or personal purchases, keep your monthly bills on point, and use coupons/take advantage of senior discounts whenever you can.”
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Downsize Everything You Can
“You can make a bundle by downsizing your residence and moving to a smaller home if you don’t need the extra rooms,” said Bakke. “It’s a buyer’s market these days, and by downsizing you’ll also reduce property taxes and homeowners insurance.”
The more you can lower your living expenses, the more cash you’ll have on hand for other investments that’ll help you build wealth and get to that million-dollar mark. You might need to move to a location farther away where costs are lower, but this change can reduce your everyday cost of living.
Find Ways To Reduce Financial Risk
You might need to accept a little bit of risk to become rich in your 60s, but you’ll still want to minimize the chances of a catastrophic financial event.
“Ensure that you have the proper healthcare insurance (and, if applicable, supplemental coverages) to cover you and your family should you face a significant health event,” said Chris Urban, CFP, RICP and founder of Discover Wealth Planning. “If you choose to self-fund for such things as long-term care, ensure you have a dedicated ‘bucket’ of assets to pull from if needed.”
Having this dedicated fund can protect your other financial assets and put you on the path to becoming a millionaire.
Leverage Your Skills and Experiences
Whether you’re still working or you’ve already left the workforce, you can still find ways to earn passive income and build wealth.
“Capitalizing on your accumulated knowledge and experience by writing a book or creating an online course can not only generate income but also establish a lasting legacy,” said Ian Sells, CEO of Million Dollar Sellers. “This can be particularly empowering in your 60s.”
“As a 60-something, you have a lifetime of skills and experiences that can be monetized,” said Bakke. “Consulting is an option, blogging is another. If you’ve got the energy, you can even start a small business in your niche of expertise, which could go a long way in making you a millionaire.”
Reassess and Diversify Your Investment Portfolio
“It’s crucial to reassess investment portfolios for diversification and risk alignment, considering the shorter time horizon,” said Shirshikov. “This might mean a slightly aggressive stance but balanced with income-generating assets like dividends-paying stocks or real estate investments.”
If you’re not sure how to go about this, you can always seek professional advice — just make sure that the costs justify the gains.
“Consulting with a financial advisor to craft a personalized plan that considers individual risk tolerance, financial goals and current assets is highly advisable,” said Shirshikov. “A tailored approach can optimize asset growth and ensure that investments are managed efficiently as [you] near retirement.”
Prioritize Tax Planning
“You should also have a plan for legally reducing the amount of taxes you will pay over your remaining lifetime,” said Urban. “Strategic tax planning is a key component of effective retirement planning.”
The sooner you do this, the sooner you can start boosting your financial resources and minimizing your losses. If you’re trying to become a millionaire in your 60s, every dollar counts.
Invest in Rental Properties
If you’re interested in pivoting, or if you already have professional real estate experience, consider investing in real estate.
“Investing in real estate offers a dual advantage,” said Tony Mariotti, CEO of RubyHome. “It provides regular rental income and the potential for property value appreciation. For those in their 60s, focusing on properties in high-demand areas can maximize rental yields and contribute significantly to building millionaire status.”
Invest in Peer-to-Peer Lending
“This method allows individuals to directly lend to others, earning returns through interest payments,” said Shawn Plummer, CEO of The Annuity Expert. “It’s an attractive option because it often yields higher returns than traditional savings or fixed-income investments.”
Like any investment, peer-to-peer (P2P) lending does come with some risk. If you have the available funds to invest, make sure it fits with your risk tolerance and other goals.
Sell Valuables You Don’t Need
Are you sitting on some valuable antiques or collectibles? Unless they hold sentimental importance, consider selling them. You might not become a millionaire, but doing this can both help you get closer to your goal and declutter your space.
“Many individuals find that they possess items which, over time, have grown significantly in value,” said Sells. “By identifying and selling these items, especially if they’re in good condition, [you] can capitalize on their inherent value.”
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This article originally appeared on GOBankingRates.com: 10 Ways To Become a Millionaire in Your 60s
