I just came across an article on Seeking Alpha about a 45-year old who had recently retired after accumulating a portfolio of about $1M. Most people don't want to retire in their 40s or 50s unless they absolutely hate their job - and even then, they might just prefer to do something different, not quit altogether. On the surface, a life without work commitments sounds exciting and liberating, but there's only so much golf you can play and there are enough hours in the day for your family even after the daily grind.
No, I read the article differently: The investor was able to accumulate $1M through disciplined saving and investing by his mid-40s. That's what I call a job well done and, I imagine, is a more common and realistic goal for most people. But what if you're about 45 today, have nothing saved and secretly read that article with jealously and resentment? Fear not, you aren't a complete lost cause. I can give you three basic principles that you could begin following today which very well may, by the time you reach retirement, push you over the million-dollar asset mark.
#1-You Have To Embrace Time
If you think you are going to get to $1M overnight, you're sadly mistaken. Think of it this way: If you are in your mid-40s with almost nothing put away for retirement, you didn't get this way overnight. You made conscious or unconscious decisions for years (decades?) to consume and not save. Or maybe you did save and invest and it turned out terribly. Maybe an unfortunate divorce took a big bite out of your savings. Whatever the cause, it's taken time to get here and it will take time to get out. Don't look back, start looking forward.
Right now, we consider "full retirement
