How To Become A Less-Stressed Millionaire

Generation Y has, for lack of a better term, “been through it.” Our generation has lived through some of modern history’s most monumental economic and social events. 

The result? Stress, and for some, lots of it. Nearly 44% of Generation Y report feeling stressed all or most of the time. Everyone has unique stressors, but the most common are saving money, managing debt, and planning for retirement. 

Even those that seemingly have an abundance of money at their disposal can find themselves as part of the statistic. Luckily, we have compiled various tips from self-reported “less-stressed” millionaires to help you. They range from simple lifestyle adjustments, mental mindset shifts, and financial planning tips. 

If you’re ready to unload some of your stress, read on!

What Makes A Millionaire?

Queue Regis Philbin – “who wants to be a millionaire”? Well, you might already be one!

In the US, a “millionaire” is someone with a net worth of $1 million or more. Think of your net worth as a summary of your total financial value – your assets minus your liabilities. More than 8% of US adults fit the bill by this definition. 

How Financially Stressed Are Millionaires?

In this blog, we’ll be utilizing data found by Fidelity Investments Millionaire Outlook Study from 2019. Based on their findings, 81% of millionaires are very satisfied with their lives. But wait, there’s more. 

Fidelity tracks what they call a “Future Economic Confidence Index” which assesses five different areas: 

1. Economy
2. Stock Market
3. Value of Real Estate
4. Consumer Spending
5. Business Spending

This asks participants to look 12 months into the future and indicate their confidence in what’s economically to come. Unfortunately, in 2019, this index went into the negatives for the first time. 

What Are Millionaires Worried About?

Fidelity’s study asked participants to self-report their health, life, work, and financial stress levels. Here’s what they found: 

It’s said that misery loves company. It’s clear based on these findings that Gen Y’s stressors are somewhat universal. 

Among the millionaires surveyed, 43% scored their stress levels above average. Those that self-reported as being less stressed shared the following attributes:

• Positivity about their future economic and personal outlooks
• 94% report being very satisfied with their lives
• They also worry about their personal and family’s health but are half as concerned as those in the “above average” stress level category

Your mind might be starting to make connections here, but let’s take a moment to debunk some common expectations. 

• The average age of stressed millionaires (66) is lower than less-stressed millionaires (67) 
• The number of investable assets between the two groups is equal ($1.75 million)
• Both groups are equally as likely to be retired (59%)
• A greater percentage of less stressed millionaires have children (78%) than stressed millionaires (75%)
• The groups are not clustered into one geographical location and live throughout the US.

So, what are less-stressed millionaires doing differently?

Less-Stressed Millionaires Take Care Of Their Health

The COVID-19 pandemic has abundantly clear the value of our personal and family health. But unfortunately, besides doing your best to eat healthy, exercise, and keep up on your doctor visits, there are some health-related issues we have no control over.

Fidelity found that the less-stressed millionaires they studied had a few things in common:

• Less likely to be managing disabilities for a loved one or themselves
• Have experienced fewer serious health issues
• More likely to reach out to a professional for help when navigating a serious health issue

Of course, you don’t always have control over who you’re caring for or serious health issues that may come up. But, there are a few things you can control. 

If you or someone you’re caring for has a disability or serious health issue, it’s important that you work towards getting the best possible care. The CDC recommends these tips for navigating your care needs: 

• Know your body – be aware of how you feel when you’re healthy and vice versa. Make a note of your symptoms and write them down so you can be prepared for your appointments.
• Have open communication with your care team; if you feel concerned that you might not be able to communicate your needs, bring a friend or loved one with you.

Following in the footsteps of less-stressed millionaires, it’s also important to reach out to a professional for help when you need it. In addition, remember that your health journey is, in a way, a team effort. Your doctor relies on you to follow their advice just as you require them to give proper care.

Work towards feeling less stressed about your health by taking an active role in your health journey. 

Less-Stressed Millionaires Know What They Want

You find fulfillment by living your life according to what you value, and less-stressed millionaires do just that!

While there isn’t necessarily a difference between less-stressed and stressed millionaires in terms of life experiences, there is in their priorities. For example, Fidelity found that less-stressed millionaires still working are more likely to take time off before retiring to pursue personal interests. 

That means you should take time off to travel, watch your children’s soccer games, join a local non-profit board, or learn something new. 

Your identity is so much more than your job, so know that it’s important not only to enjoy the work you do but also to focus on your personal goals and priorities. 

Less-Stressed Millionaires Enjoy What They Do

There’s a key difference between working for financial need and working for fulfillment. Less-stressed millionaires are more likely to fall into the latter category. 

In fact, Fidelity found that one in ten millionaires actually never plans on retiring. Why? Because they enjoy what they do and don’t want to stop!

But of course, some less-stressed millionaires want to retire someday. Interestingly, they are more likely to take steps to retire early so they can focus on what they want to do in life. Similarly, because they have clear personal goals and values, they don’t worry about how they will spend their time in retirement. 

Less-Stressed Millionaires Have Good Financial Habits & A Good Relationship With Their Financial Advisor

This likely isn’t surprising, but 100% of the less-stressed millionaires surveyed by Fidelity are confident with their overall financial situation. There are a few reasons behind that: 

• They have less income tied to fixed expenses giving them more control over their spending habits. 
• They are less likely to hold debt. 
• They enjoy investing and take an active role in it. 
• They have greater financial literacy.

In addition to having positive financial habits, less-stressed investors have a high-quality relationship with their financial advisor. 

An issue lies in the relationship between financial advisors and stressed millionaires. There’s a disconnect between what services are expected and what services occur. 

For example, stressed millionaires report receiving these services less often: 

• Estate planning
• Investment Planning
• Trust services
• Tax planning
• Long-term care planning

Additionally, it was found that stressed millionaires also have their financial plans updated less frequently. 

The main driver behind this disconnect? A lack of strong personal connection, understanding, transparency, and trust. Because of this, stressed millionaires are more likely to

• Be less likely to feel like their advisor considers their unique needs
• Be more likely to feel as if their advisor doesn’t explain all of their options clearly
• Be less likely to trust their advisor

How Gen Y Planning Can Help You Become A Less-Stressed Millionaire

At Gen Y Planning we pride ourselves on being a team who can relate to what you’re going through. 

Here’s how we’ll grow our financial advisor relationship:

• We simplify things rather than overwhelm you with charts, graphs, and numbers. And we will only layer on those complexities when necessary. 
• We work together to create your financial plans to ensure they help you match your money to your values. 
• We are always asking more questions to better understand you, and make more informed decisions. 
• We are always here for you. In addition to having multiple check-in meetings a year, you can reach out to us anytime. 

Are you ready to change your financial life and work towards becoming a less-stressed millionaire? Reach out to us today.