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It’s the advice you hear passed around like a family recipe: Work hard, save consistently, and one day you’ll retire comfortably. But what if this so-called tried-and-true advice is far from a recipe for success and more like a blueprint for disappointment?
Ramit Sethi, bestselling author of I Will Teach You to be Rich and Money For Couples, didn’t hold back as he reflected on what he considers the worst financial advice he’s ever received.
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“Get a job at an industrial company and work there for 40 years so that I can retire with $1M in the bank,” he told Moneywise. “I was like $1 million? That’s it?! No, thank you!”
The old axiom about saving $1 million for retirement hasn’t changed much. Today, many Americans think they’ll need $1.46 million to retire comfortably, according to a Mutual Life study. But Sethi rejects any such advice.
Why Sethi rejects the $1M retirement goal
He says the issue isn’t just oversimplified math but the mindset it fosters: grinding away for decades only to scrape by on a fixed budget in retirement.
For one thing, he argues that by focusing solely on saving and not spending money meaningfully, people miss out on living a rich life. He thinks it’s too long to wait till retirement, especially when the average age of retirement is creeping up, standing at 61, up from 57 in the 1990s, according to a 2022 Gallup poll.
Sethi encourages people to rethink their financial approach, shifting the focus from reaching milestones to developing a strategy that builds wealth over time.
Building your retirement savings
While a $1-million retirement goal might seem out of reach there are steps you can take to build a stronger financial future.
One of the best ways to get started is by creating a budget to track your spending. This can help you determine how much money you have to invest in your retirement.
Budgeting and tracking can help you understand where your money is going, so you can make every dollar work for you.
With YNAB, you can track spending and saving all in one place. Link your accounts so you can see a big-picture look of your expenses and net worth growth. You can prioritize saving for short or long term goals — like a vacation or a down payment for a house — with the app’s goal tracking feature.
If you want to pay debts faster, you can create personalized paydown plans to calculate how much interest you’d save if you topped up your monthly payments with a little extra.
The easy-to-use platform allows you to simplify spending decisions and clarify your financial priorities. Plus, you don’t need to add your credit card information to start your free trial today.
Another approach Sethi encourages is harnessing the power of compound interest.
“The power of compounding is something that is truly hard to understand until you see it over and over again,” Sethi said.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Investing small amounts of money over time can beef up your retirement savings. For instance, investing just $30 every week can add up to $76,965 in 20 years, assuming it compounds at 8% annually.
You can turn everyday spending habits into an investment opportunity through Acorns. Once you link your debit and credit cards, Acorns will automatically round up spare change from everyday purchases and invest it in a smart investment portfolio of diversified ETFs.
Investing just $5 each day adds up to $1,825 by the end of the year, and that’s before it compounds to make more money in the market.
Sign up in under five minutes today and get a bonus investment of $20.
However, managing your money isn’t just about starting early and investing consistently. Diversifying your portfolio is key to securing your retirement savings, especially during periods of economic volatility.
But there’s a silver lining. While the stock market recorded its worst ever performance in nearly five years in April 2025 gold prices have struck some all-time highs.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
Get expert help
Determining where you stand financially is the first step towards reaching your goals — whether you want to work until you save your first million, or set up passive income streams to help fund your golden years.
Consulting a financial advisor can provide you with a roadmap for the nest egg you need to secure your retirement. Working with a financial advisor can help increase your net returns by 3% on average, according to a Vanguard report. An extra 3% on top can go a long way over the years, and potentially help you attain financial stability quicker.
With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you’ve got the right portfolio to meet your goals on time.
Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.
All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisers will help you set a tailored plan, and stick to it.
Once you’re set, you can sit back as Vanguard’s advisors manage your portfolio. Because they’re fiduciaries, they don’t earn commissions, so you can trust that the advice you’re getting is unbiased.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
