With enough time and consistency, even an average income can lead to a wealthy retirement.
Full Article: What Does It Really Take to Retire Rich?
Most Americans won’t retire rich. In fact, the vast majority fall well short of the $1.26 million that Northwestern Mutual estimates is needed for a comfortable retirement. But building wealth for retirement isn’t reserved for lottery winners or startup founders. With enough time and consistency, even average earners can achieve financial independence.
Here are six key takeaways from the article “What Does It Really Take to Retire Rich?” — featuring insights from our founder, Dr. Stephan Shipe, Ph.D., CFA, CFP®:
1. Wealth Is Built Over Time — Not Overnight
Contrary to what headlines suggest, most people who retire wealthy didn’t get there via windfall. As Dr. Shipe explains, the majority succeed by following a disciplined plan early on.
“While there are great stories of windfalls… most wealth is generated by starting with a plan early and consistently allocating cash,” he says.
A strong financial foundation includes budgeting, managing debt, and understanding how to make your money work harder through strategic investing. It’s not glamorous — but it works.
2. Consistency Is More Powerful Than Timing
Investors often worry about when to invest. But the truth is, how consistently you invest often matters more. Shipe emphasizes that early-career savers tend to deprioritize retirement because of competing goals — but automation is your best defense.
“The secret is consistency and automation,” he says. “Save first, ideally through your 401(k), before you even receive your paycheck.”
This mindset shift — from saving what’s left over to saving first — can make a multi-million-dollar difference.
3. Stay Educated — It’s a Form of Risk Management
Warren Buffett once said that “risk comes from not knowing what you’re doing.” Retiring rich requires more than market exposure — it requires financial literacy. Investors who understand their portfolios, fees, and options are better equipped to avoid costly mistakes.
That includes understanding value vs. price: it’s not about avoiding spending — it’s about spending wisely and investing in durable, low-cost, high-return assets.
4. Cash Still Has a Role to Play
Don’t tie up every dollar in the market. Most experts agree: three to six months of living expenses should be held in liquid, high-yield savings for emergencies. This gives you the flexibility to weather downturns or take advantage of unexpected opportunities — without selling investments at a loss.
Too much idle cash? That’s a drag. Too little? That’s a risk. Balance is key.
5. Behavior Trumps Brilliance
You don’t have to be a financial wizard to retire wealthy. According to CFP Andrew Latham, “The real wealth gap isn’t income — it’s behavior over time.” Retiring rich is often about not making the big mistake: avoid overleveraging, chasing hot trends, or pulling out in a panic when markets dip.
And by the time you’re 50, having multiple income streams — from real estate, investments, or a business — is often more important than a single large nest egg.
6. Retirement Isn’t the End Game — It’s a New Chapter
Want to know if you’re ready to retire? Try living on your projected retirement income now. Max out your HSA. Test whether you can sleep easy knowing your plan is sustainable.
And remember: it’s not just about accumulation — wealth protection in your 50s and beyond becomes increasingly important. That includes strategies like annuities, paying down debt, or preserving capital in down markets.
Final Thought: What “Retiring Rich” Really Means
True wealth in retirement isn’t just a number. It’s the freedom to choose how you spend your time, give generously, and live without financial anxiety.
At Scholar Financial Advising, we help high-income professionals and HNW families build that kind of retirement. Whether you’re navigating competing goals or wondering how to turn income into lasting wealth, our fiduciary advisors are here to guide you with clarity and care.
Retiring rich doesn’t require luck — just time and a plan.