One out of every 6 people retire as millionaires — here are 8 things you can do now to make sure you're one of them by Matthew Michaels on May 3, 2018, 1:45 PM Advertisement
 - One out of every six retirees in America is a millionaire, according to a report from United Income.
- Handling finances for retirement can be difficult — the median level of wealth for retired Americans is about $200,000 — but people are living longer and costs are increasing.
- United Income CEO Matt Fellowes recommends creating an emergency fund and investing in index funds if you want to retire as a millionaire.
One out of every six retired Americans is a millionaire. This is according to a report by online investing company United Income, which analyzed data from multiple sources, including the Federal Reserve Board and the US Bureau of Labor Statistics, to find out how retirees are faring now compared to previous generations. Average wealth for American retirees is $752,000 — which has more than doubled since 1989, the report found. Likewise, the rate of retired millionaires has more than doubled in the last 30 years. Fewer people are retiring in poverty and relying on minimum wage than ever before. The report says "the percentage of retirees living on the minimum wage or less dropped in half over the past 30 years." Still, the median wealth for retirees is just over $200,000 — and people are living longer and costs are increasing. Many retirees end up relying on their monthly Social Security retirement benefits, about $1,400 on average. The Social Security Administration says the benefits account for one-third of retirees' income. Retiring as a millionaire may seem like a difficult goal to accomplish. However, there are tricks that can help you get over the line so you can enjoy seven digit wealth when you stop working. Matt Fellowes, the CEO of United Income shared his tips on how to retire a millionaire with Business Insider. Below are the eight best pieces of advice from Fellowes on how to be wealthy when you stop working. SEE ALSO: A self-made millionaire who retired at 37 says buying a home was 'probably the worst financial decision' he ever made DON'T MISS: How many years it took the 23 richest people in the world to go from millionaire to billionaire 1. Save  One of the most common financial mistakes is not saving any money or not saving enough. Fellowes said that increasing your savings rate is "the single biggest thing you can do to increase the size of your nest egg in retirement." Many factors can determine how much you should be saving, but it should be a significant amount if you expect to retire comfortably. Fellowes said that the "optimal savings rates vary depending on your income, expected returns, retirement date, and desired lifestyle in retirement, but most people need to save 10-20% of their income for a comfortable retirement."
2. Invest the stock market  Investing obviously has a huge impact on future earnings and can be a major source of income in retirement. Finding the right investment mix is crucial to balance the right amount of risk with promise of high returns. Fellowes recommends an investment portfolio weighted more in stocks than bonds. He notes that stocks have more risk, but by looking at the entire asset allocation and not just a single account, investors can use stocks to earn higher returns for retirement.
6. Don't try to beat the market  "Buy an index fund," Fellowes said. Investing can be a major part of a robust retirement plan, but actively trying to outperform the market can spell trouble. Fellowes mentioned that from 2012-2017, 84% of professional money managers didn't outperform their benchmark indices. For him, index funds are a good way to grow your finances with the market without the headache of actively trading.
See the rest of the story at Business Insider
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