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Retiring at age 55 will likely involve relying heavily on your retirement savings, since Social Security benefits will be unavailable until you’re 62.
one in Recent YouTube video.Wealth expert Jaspreet Singh said 40-somethings need to do things differently than making maximum 401(k) contributions and betting on better market returns and falling inflation. He recommends these three financial steps a millionaire takes to retire at age 55.
grow your money fast
Although it’s not impossible to become a millionaire with only a 401(k), Fidelity’s fourth quarter 2025 retirement The analysis showed that the average 401(k) balance was only $146,400.
“Your 401(k) may not be a bad place to invest your money, but that doesn’t mean it should be the only place you invest your money,” Singh said. Singh points out that the lower average growth rates and higher fees make it worth considering additional 401(k) options for building wealth faster.
Singh mentioned stock market funds as an alternative, as well as the State Street SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) as two exchange-traded fund options with different levels of risk and return.
On the other hand, taking a riskier path and actively investing in shares of companies can help beat the market. However, it will be important to research companies and industries carefully.
Whatever investment strategy you choose, keep your return expectations realistic, understand what you’re putting your money into, and account for any fees that will cut into your money.
Use tax strategies to keep more money
“As your income and wealth grow, tax becomes a big expense because you pay multiple taxes,” Singh said. Whether you’re dealing with income, estate, property or capital gains taxes, finding ways to legally keep more of your income will leave more money for investing.
While there are many tax exemptions, Singh focused on those related to real estate investment. For example, Singh discussed using 1031 exchanges to defer taxes on a sold investment property and then reinvesting the profits to buy another. But you still have to follow IRS rules, including minimum asset holding times.
Consider working with a tax expert to make sure you follow the rules and maximize your savings.
Take advantage of knowledge to increase income
Trying to become a millionaire on your salary alone can be challenging, even with salary increases. A mercer survey The survey of 1,000 US employers found that the average projected total wage increase in 2026 was only 3.5%, which was not much higher than the 2.4% inflation rate for February 2026.
Singh said the key to earning more money is not to rely on salary increases, but to use your knowledge.
“If you’ve spent 10 years learning something and you can teach someone how to do the same thing in six months so they don’t have to go through 10 years of pain and struggle, they’ll be willing to pay you for it,” Singh said.
For example, you could start providing consulting services or look for a higher-paying consulting role. Other ideas include additional efforts such as offering workshops, creating digital products, and teaching courses.
Editor’s Note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including possible loss of principal. Always consider your individual circumstances and consult a qualified financial advisor before making investment decisions.