5 WAYS MILLIONAIRES APPROACH RETIREMENT DIFFERENTLY THAN YOU

For the average person, retirement can evoke feelings ranging from slight apprehension to downright fear. After all, there’s a lot to prepare for, and if you’re planning to live on a limited amount of income, there’s little room for mistakes. 

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Millionaires, on the other hand, already have the funds they need to live comfortably once they retire — and probably more on the way due to wise investments they’ve made, including passive income. So that frees them up to focus more on other aspects of retirement that might go by the wayside for the average person. 

Khwan Hathai, a certified financial planner and certified financial therapist at Epiphany Financial Therapy said, “It’s really fascinating when you think about it because their strategies aren’t just about piling up cash. It’s more about designing a life that’s fulfilling and sustainable way into those golden years.”

Here are some ways millionaires might approach retirement differently than the average person. 

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They Build a Financial Fortress

Millionaires have a lot more to manage — and a lot more to lose — than the average person when it comes to finances. 

“First off, millionaires get the ball rolling on retirement plans way ahead of the game,” Hathai said. “They’re not just tossing money into a savings account; they’re meticulously crafting their investment portfolios, looking for tax advantages, and diversifying their assets to weather any economic storm. It’s like they’re building a financial fortress that’s ready for anything.”

More: How To Retire on $2,000 a Month: A Frugal Living Guide

They Plan for a Vibrant, Active Retirement

The average person needs to watch their spending in retirement instead of splashing it around, but millionaires have the opportunity to utilize their wealth for the betterment of themselves or others. 

“Then, there’s the whole lifestyle aspect,” Hathai said. “While many of us might dream of a quiet, comfortable retirement, millionaires are planning for a retirement that’s as vibrant and active as their working years. Whether it’s pursuing passions, diving into philanthropy or even kicking off new ventures, their financial plans are all about making sure they can live life to the fullest without financial constraints.”

They Have a Holistic View of Health and Wealth

As you age during your retirement years, healthcare expenses could increase, which could eat up a big portion of your nest egg. Millionaires know that they have a lot of living to do after retirement, so they often emphasize investing in their health and wellness.

“Healthcare is another big one,” Hathai said. “With the possibility of living longer, healthier lives, millionaires put a lot of thought into not just covering medical expenses but investing in their health now to enjoy their wealth later. It’s a holistic view of health and wealth, understanding that one is pretty much useless without the other.”

They Ensure Their Legacy Lives On Through Estate Planning

The old adage, “You can’t take it with you when you go” still holds true. And with all of the wealth millionaires have, they’d be remiss not to plan for their inevitable demise. 

“Millionaires tend to think about the mark they’ll leave on the world and their loved ones,” Hathai said. “It’s not just about avoiding taxes; it’s about ensuring their wealth does good for their family and causes they care about, even when they’re no longer here.”

They Invest In Their Mental and Emotional Well-Being

“Transitioning to retirement can be a huge psychological shift too,” said Hathai. And while this holds true for everyone — not just those who have millions of dollars — those who have huge amounts of wealth tend to invest in their mental and emotional well-being in preparation for retirement. 

“Many millionaires work with financial therapists to navigate this change, ensuring they’re mentally and emotionally prepared for this new chapter,” Hathai explained. “It’s about finding new purpose and joy beyond their careers. Interestingly, some millionaires also tap into practices like mindfulness and somatic breathwork to maintain a healthy relationship with their wealth. It’s a way to manage the stress and anxiety that can come with handling big finances, keeping them grounded and clear-headed.”

Takeaway

“Millionaires take a pretty holistic, thoughtful and adaptable approach to retirement planning,” said Hathai. “It’s not just about the money; it’s about making sure that wealth supports a life that’s rich in experiences, health and impact. “As someone immersed in financial planning and financial therapy, I find these strategies not only wise but incredibly inspiring.”

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This article originally appeared on GOBankingRates.com: 5 Ways Millionaires Approach Retirement Differently Than You

2024-03-25T16:20:06Z dg43tfdfdgfd