One of many critical decisions you must make if you want to enjoy millions in your later years is choosing the appropriate retirement account.

Are you hoping to have a seven-figure nest egg when you retire? The lofty ambition of becoming a millionaire by retirement can assure that your later years are stress-free and enjoyable.

However, there are a few crucial actions to do right away, before it's too late if you wish to have significant wealth as a senior. What you must do is as follows.

1. Be careful while selecting your retirement investing account.

It makes sense to benefit from tax incentives for retirement investment when your goal is to retire as a millionaire. However, you must think carefully about where to invest your money.

You can decide whether to maintain your retirement funds in standard or Roth accounts, such as a traditional IRA, 401(k), or Roth IRA. If you invested in a typical account, you would receive a tax advantage up front in the year that you made your contribution but would be subject to taxes when you drew money from it after retirement. The opposite would be true if you choose a Roth.

You can be in a higher tax rate as a senior than you are now if you anticipate retiring as a millionaire. Additionally, your high income may make your Social Security benefits taxable. Choosing to invest in a Roth could be a wise choice if you don't want to give the government a sizable portion of your monthly income.

2. Be reasonable about the yield on your assets.

It's crucial to consider how you envision your retirement and how much money you'll need to achieve your goals.

Although it may seem as though having a million-dollar nest egg will prepare you for life, you cannot simply remove a large sum of money each year if you have a million dollars in your brokerage account. A $1 million nest fund would only provide roughly $40,000 in annual income if you have a safe withdrawal rate and withdrew about 4% of your account balance.

Inflation must also be taken into account. The $40,000 in annual income that your million-dollar nest egg would provide if you were to retire in 30 years would only have the purchasing power of around $22,000 of today's money (assuming a 2% annual inflation rate). This may be plenty when combined with Social Security, but it probably isn't what you would consider a luxurious retirement.

Aim to have a balance in your investment account that is approximately 25 times the amount of income you expect it to generate. Therefore, you would need $2 million in savings if you wanted your investments to generate $80,000 in income in the future. When selecting your savings target, consider how inflation will impact your purchasing power and the amount of money you plan to spend annually.

3. Pay attention to investing fees

Finally, if you want to retire with a million dollars or more, you need to choose your investments very carefully. You should specifically avoid making significant payments. Fees can easily build up and cost you tens of thousands of dollars when you have a large brokerage account balance and make a lot of investments over time.

Avoid engaging with any financial or investment advisors who charge you a portion of the value of your portfolio and seek out options with low expense ratios. If you want to become a millionaire, you shouldn't squander money on pointless expenses.

These three actions will put you on the road to a retirement when you can actually lead a millionaire's lifestyle. Although it will take diligent saving and wise investing decisions, you can achieve your goals.

（Writer：Ganny）