Danny Young of Adel, GA is a Senior Wealth Manager, and President and CEO of Independent Retirement Professionals. In the following article, Danny Young discusses how to build wealth and achieve financial independence to ensure a prosperous retirement.

Unfortunately, far too many Americans seem to be in for a precarious retirement life.

According to a CNBC survey, 36% of Americans believe it will be impossible for them to retire, while the majority of Americans, 55%, say they are behind when it comes to saving for retirement.

Danny Young of Adel, GA says it is clear that it will never be too early to plan for retirement, with a main goal of achieving financial independence. Here are some of the most popular approaches to preparing for a relaxing and well-deserved retirement period.

What’s Needed For Retirement

While over 77% of Americans have a 401(k), it’s not guaranteed that this form of retirement plan will cover all of a person’s needs. This is especially true if there will be major expenses during retirement, such as medical care, paying for a child’s education, and paying off debts.

Danny Young of Adel, GA explains that social security benefits may begin as early as age 62, but a portion of this will be lost unless individuals wait until 67 (benefits even increase when someone waits until the age of 70 to collect).

Financial professionals put retirement planning in perspective based on current income and future goals. Often, it’s recommended to keep in mind that about 10 to 12 times one’s yearly income will be needed during retirement.

That means that if a person’s pre-retirement income is $150,000, they’ll need to set aside up to $1.8 million. Some recommend saving around 80% to 90% of an annual salary for this purpose.

Building Wealth

Building wealth for retirement isn’t just for millionaires. Even 80% of those who never inherited money ended up building their wealth themselves, reports Danny Young of Adel, GA.

This can be achieved in many different ways, and it usually starts with self-advocacy. A person can begin building wealth through the simple act of negotiating for a better salary when accepting a new job and asking for a raise when it is deserved.

Making wise investments goes a long way, and time should be taken to carefully nail down the best mix of investments needed for reaching one’s retirement fund goal. In addition to 401(k), options include mutual funds monitored by professional managers, index funds, and traditional stocks and bonds.

Danny Young of Adel, GA says that building wealth may also come down to the assets that reliably generate consistent income, such as investing in rental properties or works of art.

Extra income through side gigs like food delivery and freelancing online are popular ways to earn extra spending cash – but the earnings from these can also be primarily saved for retirement.

Getting Rid of Debt

Eliminating debt is one of the more challenging ways to build wealth, but it is typically an essential part of achieving one’s desired retirement lifestyle. Consumer loans and credit cards should be paid in full each month, to avoid any interference with how much one will realistically save.

While paying off mortgages and student loans is also important, it’s not as much of an emergency as the toxic debt tied to credit cards and consumer loans, according to Danny Young of Adel, GA.

Other approaches include committing to frugal spending to be more financially comfortable or opening a business with the potential to earn a large profit when it is sold.

Danny Young of Adel, GA explains that individuals should weigh their options by talking with a financial advisor. Sometimes, consolidating debt makes the most sense, as does getting rid of a few high interest credit cards. Setting a budget each month will help to ensure that one does not purchase items they simply cannot afford.

Try an Individual Retirement Account

IRAs are often overlooked, but they are a great way to begin planning a retirement early. By opening an IRA, investors can save up to $6,000 annually (more can be contributed past the age of 50).

Danny Young of Adel, GA explains that the options include a traditional IRA and a Roth IRA, which are primarily distinguished from each other by how contributions are taxed. A withdrawal’s value after taxes is also determined by the chosen type of IRA and inflation.

Other popular approaches include fractional shares, which let people invest a small amount of money in a stock and share the benefits with others who own fractional shares.

Don’t Forget Other Savings

Yes, a 401(k) is a retirement savings plan, but it shouldn’t be used alone in place of a traditional savings account or emergency fund. Instead, keep all three of these, save consistently across the board, and do not make any type of withdrawal from savings funds. The size of saved funds is typically dictated by individual retirement goals.

Danny Young is registered with, and securities are offered through Kovack Securities, Inc. Member FINRA/SIPC. 6451 North Federal Hwy, Suite 1201, Ft. Lauderdale, FL 33308, (954) 782-4771 Investment Advisory services are offered through Kovack Advisors, Inc. Independent Retirement Professionals, Inc. is not affiliated with Kovack Securities, Inc. or Kovack Advisors, Inc. The information in this material is not intended as tax or legal advice. Please consult legal or tax advisors for specific information regarding your individual situation.