Billionaires Don’t Save For Retirement; Here’s Why

The first thing that people think about when planning for the future is securing an income post-retirement. Going from the comfort and stability of regular monthly salaries to depending on depreciating funds can be challenging, especially if you are accustomed to a certain lifestyle.

So if saving for retirement isn’t going to work, what should you do instead? Take a look at the ones who made it big in life — billionaires. Did you know that billionaires don’t save for retirement and still manage to maintain the same lifestyle and maybe do better even after retirement? Have you ever wondered what they do instead?

Unless you have generational wealth, becoming rich requires a great understanding of money and the market. You might not become a billionaire simply by following them, but you can certainly know the best-kept secrets of growing your money.

Saving Vs. Investing — How Billionaires Become Billionaires?

The biggest difference between a regular salaried employee and a billionaire is the way they handle money. Whether in business or post-retirement, billionaires understand that money is a depreciating asset. The value of $50k today won’t be the same 15 years later, thanks to inflation. You can see the difference yourself. The prices of gas, real estate, and even groceries have dramatically gone up.

In a situation like this, if you expect to maintain the same lifestyle post-retirement with stagnant money, we have some bad news for you— it’s impossible. So how do you secure your future? Investing is the way to go.

Why Should You Invest?

If you’re still not convinced why investing is a better way to secure your retirement life than saving, we have three more reasons for you:

1. It’s More Disciplined

When you are just saving a part of your income, it’s up to you to decide how much you want to save or whether you want to put that money aside every month or not. And it takes extreme discipline to stick to a particular saving scheme. For instance, if you are running a little short on funds for your next trip, you might be tempted to take money from your savings fund.

On the other hand, if you have invested in an organized scheme, the monthly payments will be directly deducted from your salary and transferred to the investment account. You’ll also learn to adjust your life with the reduced salary.

Along with that, since these investment schemes have a definite period and the only way to take the money out is to terminate the scheme altogether, you’ll be less tempted to withdraw those funds even when you’re short on money for a month.

2. Investments Guarantee A Source Of Income

If you’re just saving your money, your entire retirement life will depend on a fixed fund. Let’s assume you’ve managed to save $100k for retirement, and every month you take $3000 from the savings. At that rate, you will use up all the saved money in about three years. So assuming you retired at 60, by 63, you’ll be broke again.

Even if you manage to save $200k, it’ll only last about six years, and with $300k, you can manage up to 9 years. This is assuming life goes smoothly for you, and there aren’t any financial emergencies that could instantly drain a huge sum.

No matter how much you save, those funds will exhaust sooner or later. And let’s be honest, in today’s economy saving up to $300k is a dream for most of us.

But on the other hand, if you invest in a good scheme, the interests and returns will double up as a second income stream for you, one that’s passive and easy to maintain even when old age wears you down.

3. Easier To Build

Building a stable retirement plan through investing is much easier than simply saving your money. That’s because investments bring in interests and returns that add to the original principle and create an even larger amount. On the other hand, when you’re just saving for the future, the value of your funds will only go down with the year.

For instance, if your goal is to save $300k by the time you retire, it’ll be done much faster through investing than saving.

The best part is investing in today’s world is highly accessible. You don’t have to be a billionaire to grow your money. There are so many schemes with minimum entry thresholds where you can put in small monthly installments that will grow into a hefty sum 15 to 20 years down the lane.

Where Do Billionaires Invest?

You might not have the same funds as billionaires to invest in the future, but that doesn’t mean you cannot invest in the same plans and schemes. If someone is that rich, they definitely know the best places to grow money.

Here are a few common places where billionaires these days invest their money:

1. Commodities

Commodities are a great place to invest if you’re looking for a secure investing scheme that doesn’t fluctuate with inflation. After all, that’s what billionaires do. Investing in raw materials ensures that even when the prices are falling in the rest of the market, the prices of your assets…