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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years Trusted by Retiring at 55 will likely involve relying heavily on your retirement savings, as Social Security benefits remain unavailable until you turn 62. <\/p>\n In a recent YouTube video<\/a>, money expert Jaspreet Singh said that 40-somethings need to do things differently than making maximum 401(k) contributions and betting on better market returns and falling inflation<\/a>. He recommended making these three financial moves to retire a millionaire<\/a> at 55.<\/p>\n Grow Your Money Faster<\/p>\n While it\u2019s not impossible to become a millionaire with just a 401(k), Fidelity\u2019s fourth quarter 2025 retirement<\/a> analysis showed that the average 401(k) balance was only $146,400.<\/p>\n<\/p>\n \u201cYour 401(k) might not be a bad place to invest your money, but that doesn\u2019t mean it should be the only place you invest your money,\u201d Singh said. Singh explained that a lower average growth rate and higher fees make 401(k) additional options worth considering for faster wealth building<\/a>.\u00a0<\/p>\n 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.<\/p>\n On the other hand, going a riskier route and actively investing in companies\u2019 stocks can help beat the market. However, carefully researching companies and industries will be important.<\/p>\n Whichever investment strategy you choose, keep your return expectations realistic, understand what you\u2019re putting your money in and account for any fees that will cut into your wealth.<\/p>\n Use Tax Strategies To Keep More Money<\/p>\n \u201cAs you grow your income and your wealth, taxes become a much larger expense because there\u2019s a lot of different types of taxes that you pay,\u201d Singh said. Whether you\u2019re dealing with income, estate, property or capital gains taxes, finding ways to legally keep more of your income will leave more funds to invest. <\/p>\n While there are many tax breaks<\/a>, Singh focused on those related to real estate investments. For example, Singh discussed using 1031 exchanges to defer taxes on a sold investment property by reinvesting the profits to buy another. But again, you\u2019ll need to follow IRS rules, including those on minimum property holding times.<\/p>\n To ensure you follow the rules and maximize your savings, consider working with a tax expert.<\/p>\n Leverage Knowledge To Boost Income<\/p>\n Trying to become a millionaire solely on your salary can be challenging, even with raises. A Mercer survey<\/a> of 1,000 U.S. employers found that the average expected total salary increase in 2026 was only 3.5%, not much higher than the 2.4% inflation rate as of February 2026.<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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