3 Ways to Grow $100,000 Into $1 Million for Retirement Savings

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This is a modal window. This video is either unavailable or not supported in this browser Error Code: MEDIA_ERR_SRC_NOT_SUPPORTEDTechnical details :No compatible source was found for this media. Session ID: 2022-04-10:21aa44e7a37176accda2c49e Player Element ID: vjs_video_3OKClose Modal DialogBeginning of dialog window. Escape will cancel and close the window.TextColorWhiteTransparencyOpaqueBackgroundColorBlackTransparencyOpaqueWindowColorBlackTransparencyTransparentFont Size100%Text Edge StyleNoneFont FamilyProportional Sans-SerifReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button. A very impressive nest egg could be yours. You may have lofty goals for retirement, like getting to travel the world. Or maybe your goals are more modest — you simply want the option to live in a comfortable home, pursue hobbies, and spend time with loved ones.No matter what your retirement plans look like, a solid nest egg could make them possible. And the good news is that you don’t need to dump hundreds of thousands of dollars into your 401(k) or IRA to get there. These three moves, in fact, could turn $100,000 in contributions into $1 million by the time your senior years roll around. Image source: Getty Images. 1. Buy dividend stocks Dividend stocks offer two opportunities to make money. First, there’s share price appreciation. Over time, the value of your stocks can grow, leaving you with more wealth to enjoy.But also, the dividends you receive from those stocks represent money you can, and should, reinvest from year to year. Doing that will help you grow even more wealth — without having to lift a finger (this especially holds true if you set up your dividends to get reinvested automatically). 2. Buy index funds Index funds are passively managed funds whose goal is to match the performance of different benchmarks. And while they won’t be your ticket to beating the market, they could help you generate some pretty strong returns in your IRA or 401(k).Another perk of index funds? They take the guesswork out of investing. If you’re not all that skilled in analyzing individual stocks, you don’t have to sweat it. Index funds effectively let you own bunches of stocks at a time, only without having to do much research. They also lend to diversification, which is an important thing on the road to growing wealth. 3. Invest in real estate As mentioned, it’s a good idea to branch out in your portfolio. And real estate could be your ticket to doing just that.You can’t go and invest your IRA in an income property (you can buy one separately, but that assumes you have the capital and appetite for risk). But what you can do is load up on REITs , or real estate investment trusts.REITs are companies that operate different properties and derive revenue from tenants. What’s great about REITs is that they’re required to pay a minimum of 90% of their taxable income to shareholders as dividends. As such, those dividends tend to be generous.But also, the value of REIT shares can rise over time — especially if you put your money into growth-driven sectors . And that could leave you very wealthy over a longer investment window. Get ready to enjoy your dream retirement You may have the goal of retiring with $1 million — or more. But that doesn’t mean you have to contribute $1 million to your retirement account. All you really need to do is choose your investments wisely and stay invested over multiple decades. If you stick to that plan, you may be floored by the amount of money you end up accumulating. 10 stocks that could be the biggest winners of the stock market crash When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*They just revealed what they believe are the ten best buys for investors right now… And while timing isn’t everything, the history of their stock picks shows that it pays to get in early on their best ideas. *Stock Advisor returns as of April 7, 2022

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