Think Like the Rich
As you enter retirement, your financial focus shifts from growing your wealth to preserving your assets and generating income. In this stage of life, adopting the mindset of the wealthy can go a long way, especially when it comes to managing your money and making financial decisions.
In this week’s Better Money Boston with WCVB Channel 5, Joel Johnson, CFP® shares key strategies to help you think like the rich in retirement.
Don’t Follow the Crowd
In any investment situation, there’s a lot of noise to cut through to find the right advice. The easy option would be to follow the crowd, but the crowd is usually wrong. Contrarian investors, for instance, thrive on betting against the masses.
Oftentimes, conventional wisdom falls short. Take Social Security, for example. Many people believe delaying benefits until age 70 is the right decision, but this isn’t the case for everyone. If you want to think like the wealthy, don’t just follow popular belief. The best opportunities usually show up where most people aren’t looking.
Time is Money
The wealthy believe that time is the most valuable asset we have, whereas others often trade their time for money. This significant difference in the way people think can impact everything from home life and career choices to important financial decisions.
As we know, time is precious. That becomes even more apparent in retirement when you have more of it to spend doing the things you love. With a long-term financial plan in place, you can worry less about money and focus more on what truly matters to you.
Pay Close Attention to Taxes
Taxes play a crucial role in retirement – something the wealthy and investment firms understand well. They have a keen eye for prioritizing tax efficiency in every aspect of financial planning, and you can too.
While taxes can’t be avoided entirely, implementing smart tax strategies into your financial plan can help ensure you don’t pay more than your fair share. By working with a financial advisor, you can discover ways to lower your lifetime tax liability while maximizing your retirement income.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
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