If you've turned 45 and don't have any savings in your bank account, don't worry.
That's because there's still plenty of time for you to build a large nest egg to boost your retirement wealth.
You only need to look at Warren Buffett for proof of this. The vast majority of his wealth has been generated long after the Oracle of Omaha turned 45.
So, taking a leaf out of the Buffett book today could be the way to go if you want a wealthy retirement.
Image source: Motley Fool Editorial
Building retirement wealth the Buffett way
Thankfully for readers, Warren Buffett's investment style is about as simple as it comes.
The Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) leader focuses on buying high-quality companies with strong management teams and sustainable competitive advantages.
And while buying these companies while they are cheap would be ideal, Buffett will happily settle for a "fair" price. He once famously quipped:
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
So don't look a gift horse in the mouth. If there's a high-quality company trading at an attractive price, it could pay to buy it now rather than waiting for a cheaper price that may not come.
This strategy has worked wonders for Buffett over multiple decades. For example, the most recent Berkshire Hathaway letter to shareholders reveals that he has achieved an average return of 19.8% per annum since all the way back in 1965.
It may be a little unrealistic for readers to target a 19.8% return, so for the purpose of our calculations, let's imagine we can achieve a 10% return each year. This return is broadly in line with historical market returns.
If we can put $1,000 from our paycheck each month into quality ASX shares, we could build some serious retirement wealth thanks to compounding.
Starting at 45 and continuing for 20 years, we would see the value of our portfolio grow to approximately $725,000.
And if you can afford to put $1,500 into the market each month instead, then you will have almost $1.1 million by the time you are 65.
The key is quite simply coming up with your strategy, sticking with it, and letting compounding work its magic.
