Most of us at one time or the other have thought about being a millionaire. I remember decades ago being asked by a reporter if someone could retire comfortably on one million dollars. Back then I said it depends. I still say the same thing.
It is estimated that 5-6% of Americans are millionaires. While a small percent, there are still many people who have hit the lofty number. But does that number guarantee you happiness? Does that number even get close to what you need to be financially independent? I say no, in most cases.
In my life I am around a lot of multi-millionaires. I ask how they felt when they became millionaires and 100% of the time I am told no different than the day before. Having 1 million in the bank is not the end-all that people make it out to be. It is not the magic number that we all must strive for to be able to retire. Many of us will need to have multiple millions to be able to stop work and be comfortable and confident.
Instead of setting a goal for status’ sake, set a goal based on what you will need. How much do you and your loved ones need to be able to say you are working only because you want to. That is how I define financial independence. That is a nice thought…having enough money so work is optional. It may be 1 million for you…or it may be much more. Set a goal based on your needs. Create an in depth financial plan that builds your dream life and factors in the unexpected. You might find that one million dollars just doesn’t cut it anymore.
Do you know how many millions you will need? Set up a Confidence Booster Call HERE and let’s chat. The call is free and there is no obligation.
FINANCIAL ADVISOR WARNING! Are you being ripped off? Call 281-907-5136 to hear the 5 Costly Misconceptions about Financial Planning. Byron W. Ellis, CFP®, CLU®, ChFC®, CRPC®, is a CERTIFIED FINANCIAL PLANNER™ professional and Managing Director of United Capital Financial Advisors, LLC, a Financial Life Management firm. The information contained in this article is intended for information only is not a recommendation, and should not be considered investment advice. Please contact your financial advisor with questions about your specific needs and circumstances. The opinions expressed herein are those of Byron Ellis and not necessarily those of United Capital Financial Advisors, LLC.