Author: Moneywise

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

It’s easy to assume that wealth and income are deeply intertwined. After all, how does anyone become wealthy without a lifetime of earning a six-figure salary?

But data gathered by Dave Ramsey’s team suggests the link between wealth and income may be weaker than most assume.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Only 31% of American millionaires earned an average annual income of $100,000 over the course of their careers, according to The National Study of Millionaires conducted by Ramsey Solutions. Perhaps even more surprising is that one-third of these millionaires never reached that six-figure income milestone during their careers.

It’s completely realistic to reach a seven-figure net worth without earning a six-figure salary. However, this modest path to millionaire status does require more effort and discipline.

Expenses are the key

The key to accumulating wealth is managing expenses. Many ultra-high-income individuals struggle to break into the millionaires club because they let lifestyle inflation consume them.

In fact, 36% of Americans earning more than $200,000 a year said they were living paycheck to paycheck, according to a PYMNTS survey from 2024.

By comparison, someone earning a five-figure income can become a millionaire with both disciplined saving and smart investing. Building real wealth on a mid-level income means starting early, investing wisely and consistently finding creative ways to reduce monthly expenses, like cutting insurance costs.

U.S. homeowners’ insurers have hiked premium rates by double digits over the past two years. If you’re not paying attention, that could be a major hit to your saving power.

Shopping around is one of the best ways to find better rates, but calling individual providers takes time and effort that many working people just don’t have.

OfficialHomeInsurance.com can take the hassle out of shopping for home insurance. In just under 2 minutes, you can explore competitive rates from top insurance providers all in one place.

OfficialHomeInsurance.com can make it easy to find the coverage you need at a price that could fit your budget.

But home insurance premiums aren’t the only thing coming out of homeowners’ pockets. If you own a car, you have another cost to deal with.

Car insurance rates rose an average of 16.5% in 2024, according to ValuePenguin. Like with home insurance, shopping around can lead to substantial savings.

OfficialCarInsurance.com lets you compare quotes from trusted brands — including Progressive, Allstate and GEICO — to make sure you’re getting the best deal. Their matchmaking system takes into account your location, vehicle details and driving history to find the lowest rate possible for you.

Deals can start at just $29 per month, and you can switch over your policy in only a few minutes.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

Start investing early

Time can be another powerful tool for building your wealth. Given a long enough horizon, even small savings and average investment returns can grow into a substantial nest egg.

For instance, an 18-year-old would need to save only $250 a month and earn a modest 7% annual return on investment to reach $1 million by the age of 66. Put simply, if you want to accumulate exceptional wealth without an exceptional income, starting as early as possible is essential.

The best part? You don’t need a lot of money to start saving for your long-term financial goals.

With Acorns, you can automatically squirrel away your spare change with every purchase to grow your savings effortlessly.

The app rounds up each of your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio of ETFs. This means that every transaction — from your morning coffee to grocery shopping — contributes to building your savings account.

That $13.60 lunch? Acorns rounds it up to $14. That’s 40 cents dropped straight into your savings. You can even get a $20 bonus investment when you sign up with a recurring deposit.

Over the course of a lifetime, a little can go a long way.

Avoid or limit debt

Another essential ingredient in your climb from modest to millionaire is reducing your exposure to debt. After all, serving the interest payments on credit cards or high-interest loans can offset the positive impact of a diligent savings and investing strategy.

For most people, avoiding debt — especially the expensive type — is their biggest challenge. As of early 2025, U.S. households collectively had nearly $5 trillion in non-housing debt such as student loans, auto loans and credit card balances, according to the New York Federal Reserve.

Serving this debt could be one of the key reasons why the average personal savings rate in the United States is only 4.9%, based on data from the Federal Reserve.

By limiting or eliminating consumer debt, you can save more. That could be the key to your financial freedom, regardless of your income.

The best place to start? Paying off high-interest debt as soon as possible. If you have significant equity in your home, you could also consider consolidating what you owe with a Home Equity Line of Credit (HELOC) to lower your interest rate and accelerate your payoff.

A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.

Rather than juggling multiple bills with varying due dates and interest rates, you can consolidate them into one easy-to-manage payment. The results? Less stress, generally reduced fees, and the potential for significant savings over time.

LendingTree’s marketplace connects you with top lenders offering competitive HELOC rates.

Terms and conditions apply. NMLS#1136.

Keep in mind that not all loans are created equal, and it’s important to understand not only your interest rates but also the repayment period and what assets could be used as collateral.

Creative planning

Life can be messy. Even if you follow all the traditional financial advice, your journey to financial freedom could be derailed by health issues, divorce, bankruptcy or emergencies.

If you’re approaching retirement without much savings or a high-paying career, your chances of becoming a millionaire are lower. That doesn’t mean it’s impossible to enter the club.

Creative solutions could help you get there despite the odds. For instance, you could boost your savings rate by temporarily moving to a town or country with a lower cost of living. Working remotely while paying modest rent in Mexico, for example, could help you accumulate wealth faster.

You could also delay retirement. Adding five or even 10 years to your retirement plan could make a difference, especially if you’re building your nest egg later in life. A 40-year-old would need to save just $900 a month and earn a 7% return on investment to reach millionaire status at 75.

You can also potentially increase your returns by investing in alternative assets, such as farmland, small businesses, high-growth tech stocks or rental properties.

If you’re looking to get into real estate without big down payments or tying yourself to a mortgage, you could tap into the market through crowdfunding platforms like Arrived.

Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, allowing you to potentially receive passive income without having to manage midnight maintenance calls or burst pipes.

To get started, simply browse through Arrived’s selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100.

There’s always a practical path to the seven-figure club, regardless of your age or income.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

America’s Social Security program is both popular and woefully underfunded.

Experts have been warning that the social safety net millions of Americans rely on is on the verge of fraying. Now, personal finance author and motivational speaker Tony Robbins is calling on people of all ages to start weaving their own safety net.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

"Time to get your head out of the sand and do some easy number crunching to find out where you are and where you need to be," his website advises.

"Remember this: Anticipation is the ultimate power. Losers react; leaders anticipate."

Robbins might be preaching to the choir. According to the AARP, 74% of Americans believe Social Security will not provide enough to live on during their retirement. Two-thirds of them also consider the monthly benefits too low to live on.

If you share these concerns, here’s what you can do to secure your financial future.

Craft your own financial security plan

Since Social Security payments are likely to be insufficient, creating your own independent nest egg seems like an obvious solution. Robbins recommends setting a target to save at least 20 times your annual living expenses to fund a comfortable retirement.

On average, U.S. adults currently believe the “magic number” to retire comfortably is $1.46 million, according to Northwestern Mutual. This is 15% higher than the estimate in 2023, even though the average retirement savings dropped to $88,400 in 2024, nearly $1,000 less than the previous year.

In other words, most Americans understand how much they need to save but are unable to take the necessary steps.

If you’re struggling with where to start, Advisor.com can help you find a financial advisor in just a few clicks. Advisor.com combs through a database of thousands of vetted experts and matches you with those best suited to make the most of your money. Even better, each advisor is a fiduciary, which means they must put your interests first by law.

Set up a free, no-obligation consultation with one of their pre-screened financial advisors today.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

Push for change

Despite its limitations, Americans overwhelmingly support the Social Security program and want the government to salvage it. A January 2025 poll by the Associated Press-NORC Center for Public Affairs Research revealed that two-thirds of Americans believe the government is spending “too little” on Social Security.

An AARP survey found that 85% of Americans back efforts to preserve the program, even if it requires higher taxes for everyone. According to the National Institute on Retirement Security, 87% of U.S. adults believe ensuring the program’s funding should be a top priority for elected officials, no matter the country’s fiscal challenges.

Regardless of how well-funded the program is, it’s clear that relying solely on Social Security for retirement is a risky proposition. On average, Social Security benefits replace only about 40% of pre-retirement income, which is often not enough to cover basic living expenses, let alone healthcare costs, leisure activities or unexpected emergencies.

Investing in gold can reduce your dependence on Social Security, providing a diversified source of income for retirement. Gold is often considered a hedge against inflation, as its value tends to rise when the cost of living increases, protecting your purchasing power over time.

It’s also seen as a safe-haven asset that investors flock to under uncertain market conditions. For instance, the price of gold surged to record highs in April 2025 amid concerns around the fallout of President Trump’s global tariffs.

For those looking to capitalize on gold’s potential, one option is opening a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account. This can give you the tax advantages of an IRA with the potential protective benefits of investing in gold, making it an option for those seeking to ensure their retirement funds are well-shielded against economic uncertainties.

When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in free silver.

Retire abroad

As of 2024, 21% of Americans say they would like to move abroad, up from just 10% in 2011, according to a Gallup poll. Meanwhile, the Social Security Administration reports that over 760,000 retirees are already collecting benefits while living overseas.

For those struggling with the ongoing retirement crisis, relocating to a country with a lower cost of living and a high quality of life — like Japan, Panama, Portugal, or Greece — could be a smart solution.

To make this more achievable, consider setting up a dedicated automatic savings fund for your retirement goals. This can help you build a larger nest egg for either relocating or ensuring a more comfortable retirement, even if you decide to stay in the U.S.

One of the most effective ways you can make this happen is by automatically investing your spare change with Acorns.

The app automatically rounds up your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio. This means that while you’re still earning an income every transaction — from your morning coffee to grocery shopping — contributes to building your retirement fund.

Plus, with an Acorns Gold, you get a 3% IRA match on new contributions and the ability to customize your portfolio by selecting your own stocks.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

When the economy takes a hit, unfortunately, so does your wallet. While the standard advice to  save diligently, invest in your 401(k) and avoid unnecessary spending still applies, a recession calls for an even closer look at your money habits.

Here are 15 moves — and missteps to avoid — to ensure your hard-earned money keeps working for you, even in a recession.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Should: Build up your emergency fund

Financial emergencies don’t send a calendar invite — they just show up. A sudden medical bill, a broken appliance or a job loss — these moments have a way of testing not just your patience, but also your bank account.

That’s why having an emergency fund, separate from long-term investments like a 401(k), is a good idea. Parking your emergency stash in a high-yield savings account can mean the difference between stagnant cash and steady growth. While the national average savings account rate sits at 0.41%, high-yield accounts can offer returns closer to 4%.

Should: Consolidate your debt

Another way to prepare yourself for a recession is to rethink your approach to debt. While debt can sometimes feel like an anchor that keeps pulling you down, there are ways to stay afloat, such as through debt consolidation.

By rolling multiple loans into one, you’ll have fewer bills to juggle, meaning less stress and fewer chances to miss a payment. If you qualify for a lower interest rate you can also save money in the long run.

You can compare rates offered on debt consolidation loans from vetted  lenders near you through Credible.

Here’s how it works: Answer some basic questions about your annual income and debt then Credible will show you offers from leading lenders like Discover, Upstart, SoFi and more. You can get approved for debt consolidation loans of up to $200,000 at the lowest possible interest rate on the platform.

This process is entirely free and won’t impact your credit score.

Credible also has a best rate guarantee: if you close a loan with a better rate than you prequalify for you can get a $200 gift card.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

Should: Recalculate your net worth

There was a time when net worth felt like a conversation reserved for Wall Street titans. But in reality, everyone has a number attached to their financial identity. To calculate yours, start by adding up your assets, including cash in the bank, investments and retirement accounts. Then, subtract your liabilities, such as debts and other financial obligations. The result is your net worth.

During an unexpected shift in the economy or even a surprise expense, knowing what you have — and what you owe — can help you navigate the uncertainty.

Should: Take a closer look at your budget

Some people turn a blind eye to how much they’re really spending, but when it comes to money, ignorance isn’t bliss — it’s just expensive. A budget isn’t designed to cut out everything from your life. Instead, it’s a way for you to set your financial priorities and make sure your money is being property allocated.

For example, one popular budgeting method is the 50/30/20 rule, which simplifies budgeting into three categories: needs, wants and savings or investments. Instead of complicated spreadsheets, this method offers a clear framework that keeps your spending in check without taking over your life.

If you struggle with sticking to your budget, tracking where your money is going is a great place to start. 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.

Should: Stock up on essentials

Inflation may be unpredictable, but your grocery bill doesn’t have to be. While you can’t hoard a year’s worth of fresh produce, stocking up on nonperishable items is a way to cushion against rising costs.

With food prices up 2.8% from last year — and the Consumer Price Index showing a 0.6% jump from December 2024 to January 2025 — every little bit of planning helps. If you’ve got the pantry space, now’s the time to grab extra staples before they get even pricier.

Should: Talk to a financial advisor

Talking to a financial advisor during periods of economic uncertainty is even more important. While inflation eats away at purchasing power, a financial advisor can help you figure out the best path forward. Whether it’s retirement, big purchases or adjusting long-term financial goals, an advisor can help ensure that a potential recession doesn’t derail your plans.

Finding an advisor that matches your investment style can be time consuming, but with Advisor.com you’re only a few clicks away from connecting with vetted financial experts near you.

All you have to do is enter some basic information about your current financial situation and your goals. Then Advisor.com will match you with a FINRA/SEC-registered advisor in your area for free. From there, you can set up an introductory call to see whether they’re the right fit for you.

Unlike most traditional financial advisors, you don’t need significant assets or a minimum net worth to find a fiduciary expert through Advisor.com.

Should: Consider additional income streams

There’s something comforting about a steady paycheck, but when the cost of everyday essentials climbs higher a single income stream might not cut it. According to the Bureau of Labor Statistics, more than 9 million U.S. workers were juggling multiple jobs as of February 2025, with more than 5 million balancing a full-time career and a part-time gig.

But you don’t necessarily have to snag a second job to make extra income.

With Arrived, you can invest in residential properties across the country and potentially generate passive income, without the operational headache of being a landlord.

Backed by world-class investors like Jeff Bezos, Arrived pays out rental income generated from properties as dividends monthly. Plus you’re entitled to receive capital gains at the end of the investment hold period, as residential property values typically rise over time.

Arrived is open to all U.S. citizens and green card holders who are 18 years or older. Get started with just $100.

Should: Be mindful of big purchases

That dream vacation, a new car or the latest tech might seem tempting, but major purchases can strain your budget when economic uncertainty is on the horizon. Before swiping your credit card, it might be worth asking yourself, is this a necessity or can it wait?

Shouldn’t: Panic and sell investments

When the stock market starts sliding, the instinct to sell everything and cut your losses can be powerful. But selling in a panic often locks in losses that could have recovered over time. Market fluctuations are nothing new, but historically they tend to rebound — and those who stay invested usually come out ahead.

In an interview with CNBC back in 2017, legendary investor Warren Buffett warned against the risks of timing the market. Instead, he recommended consistently investing in low-cost index funds despite market volatility.

“The temptation when you see bad headlines in newspapers is to say, well, maybe I should skip a year or something. Just keep buying,” Buffett stated. “American business is going to do fine over time, so you know the investment universe is going to do very well.”

One way you can do this is by investing spare change from everyday purchases into a diversified portfolio of ETFs with Acorns. Simply link your debit or credit card, and Acorns will automatically round up your purchases to the nearest dollar. This extra change is then put into a smart investment portfolio.

For instance, if you purchase a breakfast burrito for $10.25 Acorns will round up the purchase to $11 then set aside the difference. Once you hit $5, Acorns will invest the sum into a smart portfolio of ETFs — diversified with stocks and bonds.

You can get a $20 bonus investment when you sign up with Acorns.

Shouldn’t: Ignore your credit score

Your credit score isn’t just a random number and ignoring it can ruin your financial reputation, especially during a recession when lenders tighten their criteria. A poor score can mean higher interest rates on loans and credit cards, or even difficulty securing a mortgage, car loan or rental approval.

Many people assume that if they’re not actively borrowing, their credit score doesn’t matter. But even something as simple as missing a payment, carrying a high balance or closing an old credit card can quietly chip away at it.

Shouldn’t: Forget to shop around for better deals

Some expenses are optional — your morning latte, that extra streaming subscription. Insurance rates, utility bills, even phone plans — these are the nonnegotiables that can steadily drain your bank account if you’re not paying attention.

Yet, according to ValuePenguin, more than 65% of Americans don’t bother comparison shopping for better rates. That means many people are overpaying simply because they haven’t looked around.

In fact, ValuePenguin found that 92% of auto insurance policyholders who shopped around during their last renewal ended up saving money.

Through OfficialCarInsurance, you can compare auto insurance rates from leading providers like Progressive, GEICO, and Allstate for free.

Based on your location, age, driving history, and the make and model of your car OfficialCarInsurance will comb through its database and display offers as low as $29 per month.

The best part? Browsing insurance offers through OfficialCarInsurance won’t impact your credit score at all.

Get started and find rates as low as $29 per month.

If you are struggling with skyrocketing home insurance rates — which rose by an average of 10.4% last year — comparing offers from multiple insurance providers through OfficialHomeInsurance might be worthwhile.

By comparing home insurance rates and selecting the lowest possible cost, you can save an average of $482 per year.

Shouldn’t: Ignore inflation’s impact on your spending

The impact inflation has on your spending is something you might not notice right away, but over time you’ll see it. For instance, what used to be a $4 cup of coffee might now be pushing $6. When you don’t adjust your budget for inflation, you risk spending more than you realize — which can slowly whittle your savings.

If you want to preserve your dollar, investing in inflation-resistant assets like gold could be a good place to start. One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of American Hartford Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account — combining the tax advantages of an IRA with the protective benefits of investing in gold. This makes it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

Even better, you can often roll over existing 401(k) or IRA accounts into a gold IRA without tax-related penalties. To learn more, get your free 2025 information guide on investing in precious metals. Qualifying purchases can also receive up to $20,000 in free silver.

Shouldn’t: Withdraw from your retirement accounts early

Dipping into your retirement savings might seem like an easy solution, but cashing out early can do more harm than good. Retirement accounts, like 401(k)s and individual retirement accounts IRAs, come with early withdrawal penalties — typically 10% if you take money out before age 59½.

Another option is to tap into your home equity, provided you own your home and have been paying off your mortgage on time for years.

Rates on HELOCs and home equity loans  are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity.

Unlock great low rates in minutes by shopping around. You can compare real loan rates offered by different lenders side-by-side through LendingTree.

Just answer a few simple questions, and LendingTree will match you with up to 5 lenders with low rates today.

Shouldn’t: Quit your job without a plan

Even in a thriving economy, quitting your job without a backup plan is a bold move. When companies tighten budgets and layoffs become more common, walking away from a steady paycheck without a clear next step can put you in a tough spot.

A recession isn’t the time for impulsive exits. Instead, if you’re feeling stuck or undervalued, start mapping out your next move before handing in your resignation. Update your resume, network strategically and explore new opportunities while you still have financial stability.

Shouldn’t: Get caught up in lifestyle inflation

Lifestyle inflation can be a silent budget killer. This can happen if you get a raise or a bonus check, making spending a little easier. Whether you’re thinking of upgrading your apartment, dining out or just justifying a big purchase because you now have some wiggle room.

But if your spending rises as fast as your earnings, you’re not actually getting ahead — you’re just treading water in a more expensive pool. Instead of getting caught up in lifestyle inflation, building an emergency fund, investing more and paying off debt faster are smarter moves.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

The future of Social Security benefits is a top concern for Americans, but Professor Scott Galloway isn’t convinced the program is essential for everyone.

“Somewhere between 10% and 30% of people who get Social Security right now should not receive it. Because they don’t need it,” the New York University professor, who is known for his controversial takes, said in an episode of his podcast, The Prof G Pod.

"I’ll go as high as a third of senior citizens should not be getting Social Security."

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Galloway suggests this not just as a way to reduce economic inequality in the U.S., but also as a potential solution to cut costs in a program that faces insolvency issues due to shifting demographics. Without reform, the Social Security trust funds will be depleted by 2035. As a result, benefits for all recipients would be automatically cut by 17%.

Here’s why Galloway thinks serious reform and dramatic benefit cuts are required.

"Something is wrong"

Galloway described American seniors as “the wealthiest generation in the history of this planet,” raising concerns about the fairness of the current Social Security system.

Each year, approximately $1.2 trillion is transferred from younger workers — many of whom are struggling with debt, rising living costs and stagnant wages — to retirees, according to Galloway. In 2025, around $1.6 trillion in benefits will be distributed, with about 80% going to retired workers and their dependents.

Galloway argues that this transfer places an unfair burden on Gen Z and millennials, who shoulder most of the Social Security costs through payroll taxes. To help correct this imbalance, he proposes cutting or eliminating benefits for the wealthiest 10–30% of retirees.

“I think it’s called the Social Security tax — not the Social Security pension fund — because we don’t actually have a guaranteed right to it at 65,” Galloway said.

“The idea that ‘I paid in, so I should get it back’ doesn’t hold up, since most people end up withdrawing far more than they ever contributed.”

With the top 10% of Americans holding an average net worth of $7.8 million, according to recent Federal Reserve data, many in this wealth bracket likely wouldn’t be significantly affected if their Social Security benefits were reduced or eliminated.

Higher taxes to fund Social Security?

Galloway criticized the payroll tax cap, which limits Social Security contributions to the first $176,100 of income. As a result, a CEO earning millions pays the same as someone earning $176,100.

Removing the cap on earnings above $400,000 is one favored policy fix, according to a National Academy of Social Insurance survey. However, the Manhattan Institute notes that this wouldn’t fully solve the program’s funding shortfall — only delaying trust fund exhaustion by about 20 years.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

The institute supports Galloway’s view that Social Security now redistributes wealth upward, not downward.

According to the report, “Raising Social Security taxes (rather than addressing benefits) would accelerate the largest and most inequitable intergenerational wealth transfer in world history."

Reducing your reliance on Social Security

Reducing your dependence on Social Security is essential for long-term financial stability, particularly as the program faces ongoing funding issues.

To take control of your financial future, it’s important to build your savings, invest wisely and diversify your portfolio with tools like gold, real estate and alternative assets.

One of the easiest ways to kickstart this process is by automatically squirreling away your spare change with Acorns. When you make everyday purchases, Acorns rounds up the price to the nearest dollar and invests the difference for you in a smart investment portfolio.

For example, if you spend $8.45 on lunch, Acorns will round it up to $9.00 and automatically save that extra 55 cents. Over time, those spare change round-ups can add up. Saving just $3 a day could grow to over $1,000 in a year, helping you build your savings effortlessly.

Plus, if you sign up with a recurring contribution, you get a $20 bonus.

Investing in gold is another way to grow your wealth and reduce your reliance on Social Security, as it tends to act as an enduring store of value over time.

The price of gold has also jumped by more than 40% since 2023. JP Morgan projects that it will hit the $4,000 mark by 2026.

If you’re optimistic about gold, there’s no need to visit a bullion shop to purchase gold coins or bars. Instead, you can choose a gold IRA, which allows you to  invest directly in precious metals to hedge against market volatility.

Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau.

If you want to convert an existing IRA into a gold IRA, Priority Gold offers a 100% free rollover, as well as free shipping and free storage for up to five years. Qualifying purchases can also receive up to $10,000 in free silver.

To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, you can download their free 2025 gold investor bundle.

Investing in real estate can be another effective way to build generational wealth and lessen your reliance on Social Security. For the 12th year in a row, Americans have ranked real estate as the best long-term investment in 2024, according to a new Gallup survey.

With the help of First National Realty Partners (FNRP), you can invest in necessity-based commercial properties and potentially create lasting wealth for yourself and your family.

FNRP specializes in grocery-anchored retail centers leased by major national brands like Walmart, Kroger and Whole Foods, providing investors with potential steady cash flow through rental income and long-term appreciation.

As an accredited investor with a minimum of $50,000, you can access high-quality real estate investments without the hassles of property management.

You can also invest in alternative assets such as art to diversify your portfolio and lessen your reliance on Social Security. Art investment has emerged as a substantial asset class. The global art market size was valued at $552.03 billion in 2024 and is projected to reach  $585.98 billion in 2025, according to Straits Research.

In the past, only the ultra-wealthy could invest in art, but now services like Masterworks have opened the door to art investing. So far, over one million members have joined the platform.

Here’s how it works: Instead of spending millions on a single painting, you buy fractional shares of blue-chip paintings by iconic artists such as Pablo Picasso, Basquiat and Banksy.

All that’s left is to choose the number of shares you want to buy, and Masterworks handles everything else for you.

See important Regulation A disclosures at Masterworks.com/cd.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Short-term turbulence in the stock market can be enough to make novice investors nauseous, but veterans like Warren Buffett remain unfazed.

During his May 2025 meeting with Berkshire Hathaway shareholders, the 94-year-old Oracle of Omaha downplayed the market’s volatility.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

“What’s happened in the last 30, 45 days, 100 days, whatever you want to call it, it’s really nothing,” he said.

Here’s why the world’s most famous investor is unconcerned by swings in the stock market, even as he gears up for his own planned retirement at the end of the year.

Berkshire has lost 50% of its value before

Headlines can convince some investors that markets are ablaze. For Buffett they’re often just a bump in the road to long-term gains. After all, the Oracle has been actively investing in stocks since 1941, when he was 11 years old, giving him much more historical context than the average investor.

Now, after over eight decades of picking stocks amid these swings, nothing fazes him. Buffett insists young investors with limited experience should have a similar attitude.

“If it makes a difference to you whether your stocks are down 15% or not, you need to get a somewhat different investment philosophy,” he recommended in his annual shareholder update.

If you fall into that camp of investors who worry about upcoming market swings, here’s how you can prepare to weather the storm like Buffett does.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

Shock-proofing your portfolio

First and foremost, remember that market crashes and volatility are inevitable. That’s why sophisticated investors like Buffett structure their portfolios to sail through turbulence.

For instance, Berkshire’s assets tend to be well-diversified. According to their latest 13-F filing, they had 36 holdings in their publicly traded portfolio with the largest position being Apple, at about 26% of the total value.

To diversify your investments, you might add different asset classes to your portfolio. After all, targeting investments that aren’t as heavily impacted by stock market shifts can give your portfolio some protection during market downturns.

Invest in precious metals

One option is investing in precious metals like gold and silver, which can sometimes be used to hedge against inflation.

For example, gold surged past $3,000 per ounce in March of 2025 and quickly recovered following President Donald Trump’s Liberation Day tariffs in early April, surpassing earlier highs. If current trends continue the yellow metal could soar past $4,000 per ounce by the second quarter of 2026, according to JPMorgan. Meanwhile, the S&P 500 has only recently edged closer to pre-tariff highs as gold continues to climb.

Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.

If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.

To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2025 gold investor bundle.

Consider real estate

You might also choose to invest in real estate. Commercial real estate can offer higher potential returns than residential real estate, thanks to longer lease terms, higher rental rates and potential for greater appreciation. But direct access to the $22.5 trillion commercial real estate sector has been limited to a select group of elite investors — until now.

One way to invest in real estate is by purchasing rental properties and becoming a landlord. But for the average American who wants to avoid the need for a hefty down payment or the burden of property management, crowdfunding platforms like Arrived make it easier to slice yourself up a piece of that pie.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.

First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, accredited investors can invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.

Investing in art

Then there’s art. High net worth individuals surveyed by UBS said they think art is a relatively safe investment compared to other traditional assets like stocks.

Masterworks understands the power of art investing. Their platform has given over one million users the opportunity to invest in art, including pieces from Banksy, Basquiat and Picasso.

From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8% and +21.5% among assets held for longer than one year. To see if you qualify, you can find out more about investing with Masterworks here.

See important Regulation A disclosures at Masterworks.com/cd.

Cash is king

Lastly, Buffett always keeps a healthy pile of cash on hand to buy stocks at a discount when crashes occur.

With Wealthfront Cash, you can save for your future in a high-yield cash account. Unlike traditional savings accounts, high-yield accounts can have up to 10 times the national APY — with Wealthfront clocking in at 4.00%.

Even better, if you fund your account with $500 or more you get a $30 bonus with Wealthfront Cash.

By simply diversifying your portfolio and keeping some cash on hand, you could be in a position to not just sail through market volatility but actually benefit from it. In other words, you can be greedy when others are truly fearful.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

“Money — once you get it, it’s easy to get a lot more.”

That’s the biggest and surprisingly simple money lesson from Dave Portnoy, the outspoken entrepreneur who built a media empire out of hot takes and hustle. He shared the lesson during a candid conversation with Shannon Sharpe on Club Shay Shay.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Portnoy, who sold his company Barstool Sports to Penn Entertainment for about $500 million only to buy it back for $1 a few years later, says it took him a decade to accumulate his first million. But once he did, making money became significantly easier. He now claims to be able to make $5 million in a week.

"Once you get over the hump it just comes to you," the 48-year-old online influencer said.

Here’s why wealth creation can accelerate after you hit certain milestones.

The ultra-rich rely on the snowball effect to build wealth

There’s a reason the wealthy seem to get wealthier — and it’s not just luck. Often, the trick is  the power of compound growth, or the “snowball effect.” Charlie Munger, legendary investor and longtime partner of Warren Buffett, described it as a snowball rolling downhill: The longer it rolls, the bigger it gets.

Compound growth explains why wealth tends to grow faster after reaching certain financial thresholds. For example, an investor starting from scratch who invests $1,000 per month in an asset earning 10% annually would hit $100,000 in about 6.5 years. But thanks to compounding, that same $100,000 could double to $200,000 in just four more years — and hit $300,000 only three years after that.

This acceleration happens because returns are being generated not just on new contributions, but also on interest. As the base grows, so does the impact of each percentage-point gain.

This is where the snowball method can turn into an avalanche for the wealthy. Someone with a $100 million net worth could make $5 million with a weekly return of 5% — without lifting a finger.

Portnoy highlighted this during an interview, saying he once spent five hours just marveling at the interest he was earning on his cash after becoming wealthy.

“I couldn’t believe it," he said. "I was making money not doing anything."

That’s why hitting your financial goals early is so crucial. The sooner you start investing meaningful amounts, the more time you give compound growth to work its magic.

But here’s the thing: You don’t always need millions to get started.

One way to kickstart this snowball effect is by automatically saving your spare change with Acorns. When you make everyday purchases, Acorns rounds up the price to the nearest dollar and invests the difference for you in a smart investment portfolio.

Imagine you grab a rideshare that costs $22.30. Acorns will round it up to $23.00 and invest the extra 70 cents. It might seem like pocket change, but over time squirreling a little bit away can add up. Saving just $3 a day could grow to over $1,000 in a year, helping you build your savings effortlessly.

If you want to be directly involved with investing, Acorns has you covered with flexible, automated recurring investments starting with as little as $5 a day. Any dividends are automatically reinvested to keep your money working, and your portfolio is rebalanced as needed to stay aligned with your long-term goals.

Plus, if you sign up with a recurring contribution, you can get a $20 bonus to kickstart your investment journey.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

How to set clear targets to build wealth

If you want to reach that tipping point where wealth builds itself, you need a strategy, and that starts with setting smart, achievable goals. Think of your first major milestone — like acquiring $100,000 in assets — as the start of your personal snowball.

However, it’s essential that you consider your age, lifestyle and location while setting financial targets. A 60-year-old in San Francisco might need far more than a twenty-something living in a lower-cost city like Detroit.

Once you have a target, the next step is making sure your money is working for you. Keeping a large sum in a savings account earning low interest won’t get you anywhere. And stuffing it under your mattress would be even worse. After all, inflation will eat away at your purchasing power every year.

To help build your wealth, it can be worthwhile to keep a cash cushion in a high-yield savings or checking account like one offered by SoFi. They offer up to 3.80% APY — that’s about 10 times the national return — and don’t charge account, monthly or overdraft fees.

The best part? You can get up to $300 when you sign up with SoFi and set up a direct deposit.

Investing in alternative assets such as art is another creative way to grow your wealth and diversify your portfolio. Art investment has emerged as a substantial asset class. The global art market size was valued at $552.03 billion in 2024 and is projected to reach $585.98 billion in 2025, according to Straits Research.

In the past, only the ultra-wealthy could invest in art, but now services like Masterworks have opened the door to art investing. So far, over one million members have joined the platform.

Here’s how it works: Instead of spending millions on a single painting, you buy fractional shares of blue-chip paintings by iconic artists such as Pablo Picasso, Basquiat and Banksy. From 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8% and +21.5% among assets held for longer than one year.

All that’s left is to choose the number of shares you want to buy, and Masterworks handles everything else for you.

See important Regulation A disclosures at Masterworks.com/cd.

If you’re drawn to real estate, modern investment platforms are opening the door to easier and more flexible ways to get started.

For accredited investors, Homeshares gives access to the $34.9 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Buying a dream retirement home is a fantasy for many people, but the big question is — can it become a reality?

Not all older Americans have enough savings to buy a home outright in retirement, and even those who do might prefer not to lock their money into an illiquid asset. Fortunately, retirees have options beyond traditional mortgages.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

For personalized strategies, hiring a financial advisor can help retirees explore tailored solutions for securing their financial future.

Alternatively, crowdfunding platforms offer opportunities to invest in real estate without large upfront costs, while private equity ventures provide access to diversified investments. If you’re living in Florida in your mid-60s and are hoping to invest in property, here’s what you need to know.

Should you buy a house as a retiree?

While you absolutely can take out a mortgage as a retiree, think carefully about whether you should.

In fact, it may be worth consulting with a financial advisor to make this big decision, and for investing strategy.

With Advisor.com, you can find the best advisor for your needs — both in terms of what they can offer your finances, and what they’ll charge to work for you.

Advisor.com is a free service that helps you find a financial advisor who can co-create a plan to reach your financial goals. By matching you with a curated list of the best options for you from their database of thousands, you get a pre-screened financial advisor you can trust.

You can then set up a free, no obligation consultation to see if they’re the right fit for you.

No discrimination on the basis of age

For retirees hoping to get a mortgage, there’s some good news. The Equal Credit Opportunity Act prevents lenders from discriminating based on age, so being 67 won’t affect your chances of getting a loan.

However, your debt-to-income (DTI) ratio and stable income are key factors. Most lenders prefer a DTI below 36%, though some may allow up to 43%. Additionally, your credit score and down payment matter. Also be ready to provide sufficient proof of your income – whether that’s from a combination of Social Security benefits, pension income, and investment income.

While some lenders accept as little as 3% down, aiming for 20% is recommended. This could help to keep your housing costs affordable, open up access to a broader choice of lenders and reduce the risk of ending up with negative equity in case you need to sell if something happens — such as your health taking a turn.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

How you can invest in real estate and retirement all at once

Balancing real estate investments with retirement planning can be a smart way to build both wealth and security for the future.

So, if you want to get in on real estate value appreciation and passive income, there are several ways you can do so with minimal hassle and flexible entry points while avoiding a pricey mortgage.

Commercial real estate

Commercial real estate is an example of a reliable income stream for your retirement plans.

First National Realty Partners (FNRP) allows accredited individual investors to access grocery-anchored commercial real estate investments on properties with higher rents, longer lease terms, and professional tenants – for a minimum investment of $50,000.

FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods.

You can even invest through a Roth IRA — meaning, you could receive tax-free payments and distributions that won’t be added to your combined income calculation.

Crowdfunding

If you’ve ever wanted to invest in real estate without the headaches of owning physical property, platforms like Homeshares make it easier than ever.

Homeshares gives accredited investors access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

Another way to invest in real estate is by purchasing rental properties and becoming a landlord. But for the average American who wants to avoid the need for a hefty down payment or the burden of property management, crowdfunding platforms like Arrived make it easier to slice yourself up a piece of that pie.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Most Americans are worried about money, especially when it comes to retirement.

A 2025 survey by Capital One and The Decision Lab found that 77% of U.S. adults feel anxious about their personal finances.

One way to deal with this anxiety is to check whether your retirement savings are on track depending on your age and income.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Financial giant T. Rowe Price has published retirement savings benchmarks to aim for depending on age and salary. They can help you understand whether you’re on track, or behind, and motivate you to take action if necessary.

Here’s a closer look at those suggested figures.

How much you should have saved in your 30s

T. Rowe Price suggests having 1x to 1.5x your annual income saved by your mid-to-late 30s.

That means if you earn $70,000 annually, you should have from $70,000 to $105,000 in financial assets to be on track for a comfortable retirement.

Your 30s are a critical time to start building momentum with your savings. On one hand, your income is probably accelerating as you start to make strides in your career. On the other, this period can involve some of your biggest expenses, such as buying a house or starting a family.

Those types of big costs can make it more difficult to save. But with platforms like Acorns, you don’t even have to think about it.

Every time you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio. That way, even your essential spending translates to money saved for the future.

When you sign up now, you can get a $20 bonus investment.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

How much you should have saved in your 50s

Once you’re in your 50s, T. Rowe Price suggests you should have 3.5x to 5.5x your annual income saved. For example, if your annual income is $100,000, you need up to $550,000 saved in total assets.

They also suggest ramping up your yearly savings rate to 15% of your income or more.

As you increase the amount you’re saving and investing, it’s important to diversify your assets. Diversification is the cornerstone of a robust investing strategy because it helps protect you from any one investment dropping in value.

Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.

If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.

To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2025 gold investor bundle.

Another way to diversify is by investing in real estate.

One way to do this is by purchasing rental properties and becoming a landlord. But for the average American who wants to avoid the need for a hefty down payment or the burden of property management, crowdfunding platforms like Arrived make it easier to slice yourself up a piece of that pie.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.

Homeshares provides accredited investors with access to the $34.9 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

Homeshares offers risk-adjusted target returns ranging from 12% to 18%, and is an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

How much you should have saved in your 60s or near retirement

According to T. Rowe Price, the average 60-something needs between 7.5x to 13.5x their annual salary in net assets to retire comfortably. This means if you’re earning $120,000 you may need up to $1.62 million saved in total wealth to consider leaving the workforce.

Keep in mind that these benchmarks are general rules of thumb based on a 4% withdrawal per year in retirement. Your target could be very different from T. Rowe Price’s suggestions depending on your retirement goals. That’s why it can be worth meeting with a qualified financial advisor, who can ensure you have a personalized plan for your unique retirement goals.

With Advisor.com, you can find a trusted partner to guide you every step of the way.

Advisor.com matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you’ve always dreamed of. Start planning early, and get your retirement mapped out today.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

If you’re planning your own retirement, you probably have a retirement savings goal in mind. Americans believe the “magic number” they need to retire comfortably is $1.26 million, according to a survey by Northwestern Mutual.

Comparing your number with the actual net worth of retirement-age seniors should give you an idea of how realistic your long-term financial plan is and what kind of lifestyle you can expect in your golden years.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Here are the six levels of wealth for senior-led households between the ages of 65 and 69, based on the Federal Reserve’s Survey of Consumer Finances from 2022.

1. Financially vulnerable (Household net worth $69,500 and under)

Seniors with a net worth of less than $69,500 fall into the bottom 25% of retirees. This group is particularly vulnerable to financial shocks and highly dependent on public safety net programs such as Social Security and Medicare.

If you’re approaching retirement with less than this number, it could be a good idea to look for additional income, more ways to save money or even potentially delay your retirement to be less vulnerable in your senior years.

If you’re just starting to think about your retirement, it’s important to start saving immediately.

One way to get ahead a little at a time is to use Acorns to save while you spend. Every time you make a purchase on your credit or debit card, Acorns automatically rounds it up to the nearest dollar, then puts your spare change into a smart investment portfolio for you. When you sign up with a recurring deposit, Acorns provides a $20 bonus investment.

You can also boost your savings by parking your cash in a high-yield account. That way, you can get more bang for your buck.

For example, you could open a high-yield checking and savings account with SoFi and earn up to 4.00% APY — that’s about 10 times the national average of 0.41%. Even better, you can get up to $300 when you sign up with SoFi and set up a direct deposit.

2. Lower middle class (Household net worth between $69,500 and $394,300)

The median net worth of these households is $394,000, according to the Federal Reserve. If your wealth is under this benchmark, around half of all senior households in this age group are wealthier than you.

This cohort isn’t necessarily financially vulnerable. However, this is far from a comfortable retirement. Seniors in this bracket may be forced into a tight budget, cutting costs where possible.

Shopping around for home insurance providers can help make more space in your budget. With OfficialHomeInsurance.com it takes just two minutes to comb through over 200 insurers, for free, and find the best deal for you in your area. The process can also be done entirely online.

Similarly, OfficialCarInsurance.com can help you switch to a more affordable auto insurance option within minutes. After answering a few questions about yourself and your vehicle, you can immediately compare quotes from trusted brands like Progressive, Allstate and GEICO.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

3. Solidly middle class (Household net worth between $394,300 and $1.16 million)

Seniors with a net worth that places them between the 50th and 75th percentiles could be described as middle class.

This means access to a more comfortable retirement. But if much of your net worth is trapped in an illiquid asset, such as your house or business, you may need to find easier ways to access cash in your  golden years.

A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.

Opening a gold IRA with the help of Priority Gold allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.

If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years.

To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.

4. Upper middle class (Household net worth between $1.2 million and $2.9 million)

Making it to the upper middle class can be the first major hurdle to securing a retirement lifestyle consistent with your highest earning years.

It’s also when the very real threat of lifestyle creep can take hold. After all, now that you’ve almost made it, why not let loose with a little more luxury? But living below your assets now can pay dividends later.

To keep yourself on track, you could consider reassessing your budgeting practice with a personal finance concierge such as Monarch Money, which connects to over 11,200 financial institutions. This means you can have a top-down view of your bank accounts and investment portfolios once you add your accounts — and even digital assets like crypto if you’re using Coinbase.

Services like Monarch aren’t just about monitoring your finances. They’re about actively planning and tracking your financial goals, including trying to chart a course into the top 10% of households. To that end, Monarch offers a net worth tracker that includes your bank accounts, credit card debts, investments, loans and even property values synced with Zillow so you can monitor your progress.

You can also get 50% off an annual subscription with code MONARCHVIP.

5. Affluent (Household net worth $2.9 million or more)

Only the top 10% of senior households between the ages of 65 and 69 have a net worth above $2.9 million. These affluent retirees are usually former bankers, lawyers, C-suite executives or business owners who are accustomed to a lavish and financially free lifestyle.

If you’re a high earner planning for retirement, the gates to this prestigious club should be within reach. However, you still need robust saving habits and resilient investments over the long term to get there.

Diversification can help, because it ensures you aren’t overly invested in any one asset. There are many ways to go about this aside from gold, including investing in real estate.

Platforms like Homeshares allow accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund.

Their fund can provide an effective, hands-off way to invest in high-quality residential properties. You can diversify your portfolio into real estate across regional markets, with a minimum investment of $25,000.

With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities as a low-maintenance alternative to traditional property ownership.

But gold and real estate aren’t the only tools for diversifying your portfolio.

You could also consider investing in art with Masterworks. Their platform has given over one million users the opportunity to invest in pieces from artists including Banksy, Basquiat and Picasso.

From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8% and +21.5% among assets held for longer than one year. To see if you qualify, you can find out more about investing with Masterworks here.

See important Regulation A disclosures at Masterworks.com/cd.

6. Top 1% (Household net worth $21.7 million or more)

Only the top 1% in this bracket have a net worth over $21.7 million. This is the ultra-wealthy group that most Americans can only dream of belonging to.

If you fall into this group, your retirement plan probably looks a little unconventional. You may be less focused on budgeting and more focused on asset allocation, tax optimization and estate planning.

Making sure you have the right life insurance policy is essential for preserving your legacy and passing on your wealth to your loved ones. Life insurance payouts are also generally tax-free and can provide up to $12.92 million for beneficiaries.

Ethos Life Insurance is a modern life insurance company that offers a seamless, online process for purchasing term life insurance. Ethos doesn’t require medical exams for most applicants either, which can help you achieve peace of mind quickly.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.