Another way of getting the most net worth by retirement is by increasing the disposable income through spending less (Ross et al. 2018). This involves tightening the budget on the expenses and luxuries to invest the increased disposable income and secure a better net worth in the future. Luxuries make the retirement grind uncomfortable and come with a degree of misery in the future. Thus cutting expenses involved in luxuries helps in building future net worth. Investing in education is also a good way of improving net worth by retirement. For instance, one can invest in the education of their children by taking an education insurance policy or opening a tax free saving plan, which ensures one can pay for their child’s school fees in the future with ease. This way, the net worth is preserved because the expenditure on education will already be sorted and taken care of. One needs to start planning for their retirement early enough to ensure that their net worth by the time they retire is at its best. In summation, when put in good use, disposable income offers a tangible return on investment, which aids in getting the most net worth by the retirement age (Ross et al. 2018).
Reference
Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles and applications (5th ed.). New York, NY: McGraw-Hill.