Tags: wealth protection | investing | gold | volatility | millionaire

3 Millionaire Retirement Secrets You Can Implement Today

3 Millionaire Retirement Secrets You Can Implement Today

Phillip Patrick By Thursday, 14 December 2023 10:58 AM EST Current | Bio | Archive

Millionaires may seem like a different breed. It’s true they have more money than the rest of us – but the truth is, their wealth-building secrets are easy to follow. Here’s how you can build wealth like a millionaire…

From Phillip Patrick at Birch Gold Group

It’s quite possible you’ve run across or know someone who is a millionaire. Just like anyone else, they are saving for retirement too.

But what is their secret? Are they doing anything special that you aren’t doing while you’re saving for retirement?

The truth is, we all could learn from some of the foundational secrets they use to grow and safeguard their wealth well into their golden years. As you’ll see, there really aren’t any big secrets – nothing they’re doing that we can’t do.

So, let’s get started!

Zach Green, a certified financial planner (CFP) at Wealth Enhancement Group in Plymouth, Minnesota, revealed part of the mindset that millionaires use when building their savings and retirement wealth: 

The millionaires I've worked with over the years seem to have a common trait of patience.

They think long term and understand that life and success across various disciplines – financial but also health, relationships, golf skill – don't tend to follow a linear path.

They also focus on what they can control and respect and anticipate the impact of the things that can't be controlled. They have plans in place should catastrophe strike, and they tend to focus on what brings them joy.

So far, so good, and it seems like millionaires follow some pretty common-sense advice to keep their goals clear and their mindset sharp.

But let’s dive a little deeper into 3 more practical “secrets” that millionaires rely on to retire comfortably and leave a legacy for the next generation...

Millionaire retirement secret #1: Wealth protection

Earning and saving for retirement can be challenging enough. But once you have saved it up, you should consider protecting that wealth like a millionaire does.

Fidelity offered some suggestions to consider so you can protect your retirement better:

Plan for health care costs. According to the Fidelity Retiree Health Care Cost Estimate, a single person age 65 in 2023 may need approximately $157,500 saved (after tax) to cover health care expenses in retirement.

Expect to live longer. "[...] it's quite likely that today's healthy 65-year-olds will live well into their 80s or even 90s. This means there's a real possibility that you may need 30 or more years of retirement income."

Be prepared for inflation. Inflation can eat away at the purchasing power of your money over time. Inflation affects your retirement income by increasing the future costs of goods and services, thereby reducing the future purchasing power of your income.

It could also be important to guard against the possibility of a big recession or other losses. That’s called sequence of returns risk.

But the gist of that idea is, as CFP Avani Ramnani put it: “If there’s a big loss in your assets and you’re taking withdrawals, you could be taking more from your portfolio than what it can make up for.”

Which leads to the most obvious suggestion that everyone (including millionaires) follow: Don't withdraw too much from savings at any one time.

Millionaires’ saving secret #2: Keep your retirement fund on track

In order to reach their retirement savings goals, millionaires follow at least five pieces of general advice, which were listed in a recent AARP article:

1. Live below your means.

2. Track your expenses.

3. Invest in yourself: Sharpen your professional and your retirement saving skills.

4. Set and agree on goals.

5. Stay focused.

Those seem to be some fairly easy-to-follow suggestions to stay on track. (But if you start falling behind, we discussed some ways to “get back” on track previously.)

Four key retirement saving ideas from that piece were:

  1. (or rebuild) a solid foundation.
  2. Ensure proper diversification.
  3. high-interest debt (like credit card debt).
  4. Build resilience sufficient to ensure your savings can weather a storm.

It’s quite likely that millionaires, and all successful people, follow those same suggestions when they get off-track.

Which leads us to the final secret...

Millionaire wealth-building secret #3: Manage economic volatility

Economic volatility is a major risk to our savings – quite simply, most financial assets and sources of income (including jobs!) are economically sensitive. That means, during a recession, their value falls – meaning your savings dwindle at the same time you find yourself looking for work…

Ideally, your savings should include assets that are “counter-cyclical” or “contrarian” in nature. That means, they tend to hold or even increase in value during tough economic times.

The secret is to diversify your savings – own assets that grow during periods of economic growth as well as assets that preserve value during economic declines. Here’s how:

For millionaires, balancing risk and reward by diversifying across asset classes is a way to preserve capital while also growing wealth.

"Millionaires are primarily focused on accumulating wealth. They may not feel financially independent yet, but they are diligently saving and aiming for that goal," Tammy Trenta, founder and CEO of Family Financial said.

Of course, one of the many alternative asset classes to consider diversifying into also happens to be one of the most resilient during economic turmoil: Physical precious metals.

Millionaires have historically invested in it by the ton:

The world's wealthiest people have responded to economic worries by buying gold by the bar -- and sometimes by the ton -- and by moving assets out of the financial system, bankers catering to the very rich said on Monday...

Julius Baer's chief investment officer for Asia is also recommending that wealthy investors park some of their assets in gold as a defensive stance following a string of lackluster U.S. data and amid concerns about currency weakness.

Even if you can’t afford to diversify your savings with a $65 million ton of gold bullion, you can take diversification steps suitable to your means…

Diversify with physical gold and silver (just like millionaires do)

Diversifying your retirement savings with precious metals like gold and silver could help you if you need to consider a safe haven to store your money.

That’s because gold and silver have been historically proven to store purchasing power, because they’re inflation-resistant assets.

Bottom line: The best time to consider proper diversification is now. Among other options, that could help your retirement savings weather out almost any storm.

So don’t wait too long. Take control of your financial future today – and prepare for the next economic downturn before it materializes. You can get the information you need to consider precious metals in our free kit.

Phillip Patrick is Birch Gold Group’s primary spokesman and educator. He was born in London and earned a politics and international relations degree at the prestigious University of Redding in Berkshire, England. Growing up in London, he saw the risks of government overreach and socialist policies first-hand. He spent years as a private wealth manager at Citigroup on Lombard Street (the Wall Street of London). He joined Birch Gold Group as a Precious Metals Specialist in 2012.

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Millionaires may seem like a different breed. It's true they have more money than the rest of us - but the truth is, their wealth-building secrets are easy to follow. Here's how you can build wealth like a millionaire.
wealth protection, investing, gold, volatility, millionaire
Thursday, 14 December 2023 10:58 AM
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