Key Points

• IRA millionaires allow compounding to turn regular contributions into seven-figures.

• Automating contributions is central to this success.

• IRA millionaires think long-term by accepting volatility and staying invested.

• The $23,760 Social Security bonus most retirees completely overlook ›

As much fun as it would be to say that individual retirement account (IRA) millionaires have stumbled across little-known wealth-building secrets, the reality is much less dramatic. Across the board, IRA millionaires have followed a well-tested, well-trodden path to wealth. Best of all, it's a path you can follow.

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1. They're consistent

Once they've opened an IRA, those who've built wealth have faithfully made contributions to their account year in and year out, regardless of what's going on with the market. When the market is volatile and others panic-sell, these millionaires stick around and keep contributing. Not only can they scoop up high-quality assets that more fearful investors are selling, but their accounts are also first in line as the market recovers.

2. They go big

IRA millionaires prioritize their savings rates by paying themselves first. When possible, they max out their monthly contributions before deciding how much is left to spend on other things. That's not to say they don't spend money on the things they enjoy, but they do it only after boosting their retirement accounts. It's a priority, and even though the big payoff may be decades away, it's a habit they're willing to stick with over time.

3. They make room for investing

For someone who doesn't earn much, "going big" may feel impossible. That doesn't mean becoming an IRA millionaire is out of reach, though. Plenty of millionaires started by investing small amounts and slowly increasing their contributions over time.

4. They lean on the "combo"

As they plan for retirement, IRA millionaires set up automatic monthly transfers to their IRAs. The combination of automatic contributions, a long time horizon, and compounding does most of the heavy lifting. The soon-to-be millionaire's sole job is to trust the combo and stick with the plan.

5. They live below their means

Early on, most IRA millionaires choose a lifestyle that lets them live well below their means. They resist lifestyle inflation and cut those small expenses that could be put to better use in an investment account. They treat high-interest consumer debt like a dangerous weapon that can derail wealth building.

6. They own simple, growth-oriented investments

The reality is this: Despite all the fanfare surrounding the latest company or sector, most IRA millionaires build wealth with boring tools. They focus on diversified, low-cost funds and quality assets, avoiding frequent trading, market timing, and complex products they don't fully understand. They study potential investments until they find assets they believe in enough to hold in their portfolios for decades.

Perhaps what's so striking about IRA millionaires is how ordinary they are. They haven't done anything others can't duplicate. It's all about consistent contributions and patience.

The $23,760 Social Security bonus most retirees completely overlook

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