Retirement Planning for Millionaires
Retirement Planning is a major concern for young people and especially so for millionaires. There are two issues that concern a growing number of wealthy people the most. The single most important financial goal, even for multimillionaires is to ensure a comfortable standard of living in retirement. The second most important issue is to avoid outliving their assets.
Getting Rich at a Younger Age
A significant amount of wealth is being created today by young people. Why are many young millionaires and multimillionaires so concerned about ensuring a comfortable standard of living in retirement and about outliving their assets? Many readers of my book Securing a Retirement Income for Life are already millionaires or pretty close to it. Many readers of my book have the financial goal of achieving financial independence and financial security. Although many people may start out with a significant amount of wealth, they are concerned about these retirement issues for a number of reasons.
Retirement Planning and Market Volatility
The younger you are, the more time you have to save and invest for retirement. The longer you have to save and invest, the more time you have to accumulate significant wealth. There is also more time for the markets to work against you. The markets are more volatile than most investors realize and to many people, this volatility could threaten their financial security. For many people, retirement may represent the longest stage of their life. A market decline right after they retire could jeopardize their retirement.
The Shift Away From Defined Benefit Plans to Defined Contribution Plans
The shift away from defined benefit plans to defined contribution plans is a trend that has revolutionized retirement planning by placing more of the responsibility for saving on the individual. Without the security of a traditional pension plan and a steady stream of income from employer provided defined benefit plans, many millionaires and multimillionaires are concerned about having to rely more on their own resources for a much higher percentage of their retirement income.
A Desire to Retire Early
Many young millionaires would like to retire early. In order to maintain or increase their standard of living in retirement, they must prepare for the many challenges and uncertainties that lie ahead as they approach retirement and during their retirement years, such as the potential risk of outliving their money. These uncertainties can have a tremendous impact on retirement savings and security and are complicated by an ever changing tax and economic environment.
New Solutions for Retirement Concerns
If you have the goal of achieving financial independence, you must learn how to implement new solutions and strategies for managing, protecting and preserving your wealth. You must learn how to prepare for the many challenges and uncertainties that lie ahead as you approach retirement and during your retirement years to ensure a comfortable standard of living in retirement and to protect against the risk of outliving your assets.
Bill Griffith, Jr., CFP®,
is principal of W.E.
Griffith & Associates, LLC
, a wealth management firm in Washington, Pennsylvania. He has been
providing specialized strategies and services for ensuring long-term
financial independence and security for many years. He has written
numerous articles about various topics relevant to personal finance,
retirement and investment planning and is author of the books Securing
a Retirement Income for Life
and More
Money for Retirement Right Now.
Return from Retirement Planning to Retirement