A personal finance expert breaks the No. 1 rule on the road to becoming a millionaire
Personal finance expert and host of ‘The Ramsey Show’ Rachel Cruze discusses the reasons why Americans are retiring sooner than planned and how to save for a comfortable retirement.
If you want to set yourself up for retirement success, personal finance expert and “The Ramsey Show” host Rachel Cruze explains a top rule that can help you get on the road to becoming a millionaire.
This expert joined FOX Business’ “Mornings with Maria” on Monday and offered advice when it comes to saving for retirement, and explained how one can reap the rewards and benefits of using your employer’s 401(k) plan.
“The great thing is that a lot of 401(k) plans, where your company has a match, you go up to that match and use plans like a Roth IRA, where you put $7,000 in those years and that [a] a tax benefit, right?” Cruze pointed out. “So if you take that out, you won’t have taxes on that.”
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Cruze agreed with host Maria Bartiromo, who suggested that “the No. 1 rule of being a millionaire” is to put money into your company’s 401(k) plan early — without touching it — and take advantage of a Roth IRA plan, if the company offers one.
A person puts money into a retirement savings pot. (Stock)
Withdrawing money from a 401(k) plan is a future strategy that will pay off in the end, emphasized the host of the “Ramsey Show,” which specializes in helping people manage their money.
“It’s a long-term mindset,” said the financial expert, while pointing to concerns from younger generations and investors.
“I think the problem is, especially with young people, we’re talking to Gen Z and even some millennials, as retirement feels so far away that you feel like you’re putting money in a black hole, and like, ‘I’m not going to see that, so I have to take care of the problems today.’
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He explained how one of the “big messages” the Ramsey Solutions team shares is getting people to believe in themselves, get out of debt and build a financial game plan.
“So getting out of debt is also one of our big messages,” Cruze continued, “and then I can say, ‘Okay, we have an emergency fund with liquid cash and a high-yield savings account for three to six months of expenses.'”
In addition to being debt-free, having an emergency fund and a high-yield savings account, the “Ramsey Show” host also suggested putting “15% of your income toward retirement.”
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Cruze commented on how “there are so many great options” for people to plan their financial strategy and become a millionaire.
“To be able to walk and talk to you [human resources] “So don’t take your money out of dips in the market because people panic and take their money out and that hurts them in the long run.”
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