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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.
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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.
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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.
You can combine the recession-resistant nature of gold and the tax benefits of an IRA account by opening a gold IRA.
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.
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.
If you’re feeling overwhelmed WiserAdvisor might be able to help by connecting you with vetted financial advisors near you for free. Just answer a few simple questions about yourself and your financial goals. WiserAdvisor will then match you with 2-3 experts best suited to making the most out of your money — whether you’re looking to build your retirement nest egg or navigate your investments.
From here, you can compare their qualifications and experience, read reviews and, once you’ve selected your preferred advisor, schedule a free, no-obligation consultation.
What to read next
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- 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 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
