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Steps To Building Wealth

February 6, 2014

Stages of Wealth Building

You could quickly take a random pile of blocks and build something solid. The steps to building wealth are not so different, as the process involves a series of small decisions that move us along, one building block at a time. "It is from those daily decisions that individuals build wealth," says J. Landon Loveall, founder and president of Cumberland Wealth Planners in greater Nashville, Tenn. "What you do now will determine where you are financially 20 years from now." The steps to building wealth begin with a clear intention to attain it.

Bank Statement FBN In our 50s, we are often earning our highest income, leaving more capital for internet savings, eliminating debt and investing in wealth building opportunities for retirement. Fewer expenses after children leave the nest along with homes gaining equity make prime wealth-building opportunities more attainable. This is the ideal time in your life to put your income toward your retirement account and other business investments, such as a vacation home you plan to rent out. As we approach retirement age, many of us might dip into our retirement funds and other sources of income such as Social Security. But reaching a certain age doesn't always mean your wealth-building days are over.

9 Ways to Build Wealth in 2011

"Get help." Your goal for the year: Get educated about what's in your retirement accounts and why. Tip for success: You don't solely want only fixed-rate instruments such as bonds and CDs, she says, because it takes more than compounding interest to build a retirement fund. 7. If You Have an HSA, Max It Out Eric Tyson, author of "Investing for Dummies" and "Personal Finance for Dummies": "I'm a very big fan of (health savings accounts) because they offer better potential tax benefits than a traditional retirement fund," Tyson says. With HSAs, investors receive an upfront tax break, compounding investment earning, and pay no tax on the money that is withdrawn "as long as its use is for health expenses," he says. But the device might not work for everyone.

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