The Motley Fool

Want to be a SIPP millionaire? I’d follow these 3 C’s to get rich

If I’m lucky enough to live 20 years beyond retirement, being a SIPP millionaire would give me a healthy £50,000 a year to play with.

And while the older one gets, the fewer things one has to brag about – either on the golf course or in the pub – a million quid pension pot is certainly something to shout about. Except when it comes to paying for the next round.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

It’s certainly no breeze to become a SIPP millionaire. But with dedication, patience, and the right kind of mindset, I believe anyone can do it. I’d use these three C’s to get there.

1. Confidence

I modelled a lot of my early business decisions on Jack Welch.

Jack was a titan of industry and the purest model you’ll find of a hard-headed, light-hearted CEO. When Jack retired from General Electric in 2001 he collected the largest-ever severance payment in history: more than $400m.

And while the company I ran didn’t quite reach such heady heights, one of his best pieces of advice was always at the back of my mind.

Don’t overbrain things to the point of inaction.”

Yes, there can be hundreds of thousands of pounds at stake when investing to become a SIPP millionaire.

But if you never pull the trigger on an investment you will never reach your goal. And the longer you stay in cash, the more of your hard work is wasted.

2. Consistency

Of all the things needed to become a SIPP millionaire, this one is the hardest to acquire.

As Will Durant wrote: “We are what we repeatedly do. Excellence then, is not an act but a habit.”

Spending 15 minutes a day lifting weights, or meditating, or hovering by the biscuit tin instead of diving straight in. This is what gets us cumulative progress, or compound gains. It’s precisely the same for investing.

There is one simple trick you can use to automate your way to being a SIPP millionaire and bypass your human laziness. I’m amazed more people don’t do this.

Set up a regular investment to your SIPP, not just when you’ve got the money left over at the end of the month.

Do a quick calculation and you’ll find the rewards are huge.

Take a starting pot of £50,000. At a pretty conservative 6.5% a year, simple interest will get you all the way to £228,793.

But add £1,000 a month consistently? That’s SIPP millionaire territory. £1,077,009, to be exact.

Your invested capital over the three decades is £410,000. And your compound interest — basically free money — is £307,527!

3. Control

To have a chance at becoming a SIPP millionaire, you need a firm hand on the tiller. And knowing your £1m target before you start actually makes it easier.

Self-denial now to reap rewards later is something all of us should learn. And yet not doing it is a bad habit many can never overcome.

I’d add that this one is linked strongly to consistency. If spare cash is not in your account to spend, you can’t blow it on wine, or sports gear, or whatever little thing takes your fancy. Ask any SIPP millionaire his or her habits. You’ll find each answer remarkably similar.

I’ll defer to Jack Welch again to conclude: “Control your destiny, or someone else will.”

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Views expressed in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.