CONNECTICUT MONEY: How to become a millionaire by retirement ...

CONNECTICUT MONEY: How to become a millionaire by retirement age nhregister.com /articles/2013/08/10/business/doc5206ddc4010dd486738815.txt Everyone aspires to accumulate enough funds for an enjoyable retirement. If you want to retire with $1 million or more, how do you get there? Success leaves clues: Talk to friends and relatives who have hit this benchmark and ask how they did it. A financial adviser can assist with your financial plan to help make these dreams a reality. I have outlined several paths for you to consider as you undertake your financial journey toward your first million: • Maximiz e retirement savings. If you save $1,000 per month in your company savings plan, based on a hypothetical annual return of 8.5 percent, you would hit your goal of $1 million in 25 years. If you earn $60,000 a year and your employer matches you 3 percent for a total of $1,800 per year, you would hit your goal a year sooner. As we have all lived through, investment returns vary widely. When retirement planning, it’s wise to use several rates of return so you’re prepared for different market environments. • Reduce expenses. If you reduce your expenses by $1,000 per month and save the difference, think about the financial advantages you would reap. In the previous example, if you saved an additional $1,000 per month you would amass your million- dollar goal in 18 years. The reality is, we all have our spending weaknesses. For some, it is going out to lunch every day. For others, it’s never saying no to their loved ones’ requests or living well above their means. If you are serious about reaching your financial goals and living amongst the palm trees someday, then you owe it to yourself to keep track of your spending and make adjustments so you can hit your financial targets. • Take a side job. If your current workweek is 35 hours and your employer allows you to have a second job, why not consider earning an extra $250 per week doing something you love on the side? Part- time work can be a great way to help defray college costs or give a much- needed bump to your retirement savings. Continued... Review your investments regularly. Finally, as you accumulate funds, be sure to have your portfolios reviewed regularly to ensure they are allocated properly. We often find that 401(k) plans and IRA allocations are an afterthought for busy individuals. Take the time to review these funds since they are key to enjoying the freedom and peace of mind that $1 million in net worth could provide you in retirement. Eric Tashlein is a certified financial planner practicioner and Principal of Connecticut Capital Management Group LLC, 67 Cherry St. in Milford. He can be reached at 203- 877- 1520 or through www.connecticutcapital.com. This is for informational purposes only and should not be construed as personaliz ed investment advice or legal/tax advice. Please consult your adviser/attorney/tax adviser. Registered Representative, Securities offered through Cambridge Investment Research Inc., a broker/dealer, member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors Inc., A Registered Investment Advisor. Cambridge Investment Research Inc. and Connecticut Capital Management Group LLC are not affiliated.