Who Wants to Retire a Millionaire?

Many of us probably know at least one person who has made his or her first million. "But what about me?" you may be wondering; "Am I making the right investment choices?"

Most people think that being wealthy means you make a lot of money. Remember that how much you make isn’t as important as how much you keep. If you save a little bit from each paycheck, you can accumulate personal wealth. To build wealth successfully, start at the beginning by having a good basic understanding of investments. Then set up a personal financial plan with well-defined objectives.

When creating your strategy, don’t overlook the investment power of asset allocation, diversification, and dollar-cost averaging. Asset allocation is the process of allocating money into different types of assets. The key to diversification is that you spread risk by putting money into different investments within each asset type. Dollar-cost averaging is a technique for investing on a steady, gradual basis, thereby reducing the risk of missing out on potential opportunities if the market does well, and reducing your exposure if the market takes a downturn*.

It’s never too late to begin building wealth. Take advantage of your employer’s retirement savings plan. If you can, contribute the maximum amount allowable. Remember to save and invest wisely and stay on course with your retirement savings strategy. Who knows, your final answer may be "Yes" to the question "Will I retire a millionaire?"

*Dollar-cost averaging does not guarantee a profit and does not insure against losses in declining markets. You should also consider your ability to continue investing through periods of high and low price levels.