The mindset needed to retire rich

The mindset needed to retire rich

The mindset needed to retire rich Young investors looking to retire with a lot of money in their pockets should remember three important steps to grow their wealth.

According to Ryan Goldsman of the Motley Fool Canada, the first step in the journey to retiring rich is being able to save money on a regular basis. This leads to building and growing the individual's sizable portfolio or net worth, allowing for a bigger threshold that will be used to do some heavy lifting.

Goldsman said the next vital step is to be able to research and buy securities with a significant amount of long-term upside. There are certain firms listed on the stock market that fits the bucket. For instance, the shares of Home Capital Group could potentially yield an upside of more than 50% at $14 per unit.

Another interesting investment to consider is the stocks of Canadian Imperial Bank of Commerce (CIBC). Investors of the bank are provided with the less risky dividend yield of 4.75% at less than $110 per share. And with its recent acquisition south of the border, shares of this banking giant are expected to see an uptrend for the next decade to come.

These types of stocks allow investors to pour their hard-earned money into something that has long-term potential. After carefully selecting the best way to invest, the final and the most important step is to remain patient.

The trading in and out of such securities does not often go well, as these investments are geared for those who think long-term. Goldsman said it is a must for investors to be patient and focussed.

Take for example that case of Dollorama, which, after its IPO in 2009, saw its stock climb by as much as 1,300%. Goldsman said it still has a very long way to go still before it has what it takes to be a dividend powerhouse for income-hungry investors.

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