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7 Ways Middle-Class People Become Rich in Retirement

Updated: 08-11-2024, 07.00 PM

In the U.S., people in the middle class often live a comfortable life — but that doesn’t mean all of their needs are met. Certain things, like homeownership and healthcare, can still be major financial stressors for middle-class individuals. This is true of those who are still working and those who are retired.

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If you’re retiring in the middle class and want to continue to build wealth — either for your own goals or for your descendants — you have options. GOBankingRates spoke with several financial professionals to see what they suggest. Here’s what they said are some of the best ways for middle-class people to become wealthy in retirement.

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While you should ideally have at least some money in investment accounts, chances are you also have some savings in the bank. But don’t leave your money in a traditional account — use a high-yield account instead. While this won’t make you rich on its own, it can help your money grow and lead to more wealth over time.

“A high-yield savings account is a must-have for all. Whether it is for your emergency fund, your renovation fund or vacation fund,” said Melissa Murphy Pavone, CFP, CDFA and director of investments at Oppenheimer & Co. Inc. “It is a secure way to grow your money, while preserving liquidity.”

If you already have a high-yield savings account, check the rate and compare it with other options. If you find a bank with higher yields, you might want to make the switch as this can help your money grow faster.

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Chris Urban, CFP, RICP and founder at Discovery Wealth Planning, suggested taking on a part-time job in retirement. On the one hand, this lets you enjoy certain social benefits that come with staying in the workforce. Financially, it’s also a great way to keep building your nest egg or generational wealth.

Plus, if you’re able to live on the extra money you’re earning from your part-time job, you can draw less from your retirement or investment accounts. This means the money in those accounts can continue to grow unhindered.

While not for everyone, having a certified financial planner (CFP) could help if your goal is to become rich.

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