3 Things Millionaires Do During Times of Economic Uncertainty

Almost regardless of how much you have in the bank, it’s difficult to feel financially secure.

Across the board, households are facing rising child care costs, skyrocketing auto loans, high mortgage rates and record rents amid economic uncertainty and recession fears.

Of those with more than $1 million in investable assets, a third – or 33% – fear they will outlive their savings Northwestern Mutual’s 2023 Planning and Progress Study.

And nearly half (47%) of wealthy Americans said their financial planning needs to improve.

More from Personal Finance:
Student loan borrowers are at risk of fraud
The first Frisco school savings account holders are heading off to college
The biggest drawback of 529 plans will soon disappear

Despite their high net worth, fewer than half of all millionaires (44%) felt “very comfortable,” a separate report from Edelman Financial Engines found.

Even doctors, lawyers, and other high-paid professionals—dubbed the “ordinary rich”—who benefit from stable jobs, home ownership, and well-funded retirement accounts, reported that they are not doing well at all. Some even said they felt poor, according to another recent survey by Bloomberg.

Still, there are things millionaires do that the rest of us might not do, according to the Northwestern Mutual report, that can go a long way toward improving long-term well-being.

Here are three steps wealthy Americans are more likely to take:

1. Planning for ups and downs

“Wealthy people hold themselves to an exceptionally high standard when it comes to managing their finances,” said Aditi Javeri Gokhale, chief strategy officer and head of institutional investments at Northwestern Mutual.

In fact, 84% of the wealthiest Americans said they have a long-term financial plan that takes economic ups and downs into account, Northwestern Mutual found. Only 52% of the general population said the same.

Wealthy investors have record amounts of cash

“They don’t go on autopilot. Instead, they aim to look far beyond today,” Gokhale said. “This also includes the possibility of twists and turns in their financial lives.”

Maintaining a well-diversified portfolio has never been more important, experts say, including stocks and high-quality bonds historically performed well during a downturn.

2. Working with a consultant

To create a plan based on risk tolerance and goals, millionaires are significantly more likely to seek professional help as well.

According to Northwestern Mutual, seven in 10 wealthy Americans work with a financial advisor, nearly twice as many as the majority population.

“Working with an advisor gives you the opportunity to have an agent – much like a therapist,” said Douglas Boneparth, certified financial planner and president and founder of Bone-true wealthan asset management company based in New York.

“When life events come up, such as the birth of a child or a job change, having this third party present can help you focus on what you can control and make smart decisions,” he said. Boneparth is also a member of the Advisory Board of CNBC.

3. Stick to a financial plan

https://www.cnbc.com/2023/09/19/3-things-millionaires-do-in-times-of-economic-uncertainty.html 3 Things Millionaires Do During Times of Economic Uncertainty


Pechip.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@pechip.com. The content will be deleted within 24 hours.

Related Articles

Back to top button