Less Stress for the Millionaire?

Laurie Kramer, CFP® |
Categories
Financial Planning Focus

For many, achieving millionaire status has been a widely accepted goal that once achieved, you can breathe a little more comfortably. Unfortunately, the reality is that having $1 million saved does not guarantee a feeling of security. My theories for this are trifold based on discussions with clients, family, and friends. First, as humans, we are programmed to detect a threat. That natural state is tested daily (think driving on the beltway) and exploited daily (think pharmaceutical commercials for instance – do I have dry skin or psoriasis???). Second, inflation has gone up 735% since 1970 (check out this inflation calculator: https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator), giving us the feeling that we will never have saved enough for the basics. Third, as we age, we grow increasingly concerned with our health and related costs, which feeds the exploitation theory in my first point, and financial burden in my second point. So, what can we do to help alleviate stress and enjoy your hard-earned savings? You can only control how you plan and react. Based on my three theories, consider:

1) Limit time watching TV and social media. But when you do and something evokes an emotional response, make a conscious decision not to overreact. If the subject bothers you enough, seek trusted research sources (or consult a doctor for that itch).

2) Continue to save and invest to outpace the rate of inflation. Limit discretionary spending as best you can or at least manage it. Go on the cruise, but don’t spend $7/day at Starbucks. Or vice versa, whichever makes you happiest and makes sense within your own plan.

3) Some articles suggest that the number one stress for middle-aged millionaires is health concerns and the associated costs. So let me spend a bit more time here with a few ideas:

  • Do yourself a favor and be as healthy as you can in middle age: studies suggest that your health in middle age helps dictate your health in your golden years.
  • Talk to your advisor about family history and any other relevant health concerns. There are no guarantees, but your family history should be a factor to consider when deciding how to estimate health care costs as part of your financial plan.
  • Discuss with your advisor long-term care costs and the perceived likelihood of need. If you are worried about in-home, assisted living and nursing home costs, you have a variety of options to help pay: long-term care only policy, LTC/Life insurance hybrid policy, LTC annuity, or you can plan to self-insure (pay your costs with your savings/investments). With the hybrid and annuity options, you may be able to take advantage of a 1035 tax-free exchange from an existing life insurance policy.

Each one of these options has pros and cons and, therefore, requires evaluation. However, evaluating and discussing these options may prove to be the stress reliever that works for you. We are happy to help you determine the best course of action. Since we don’t sell any of the products listed above, we can work with you to navigate the options without bias as part of your financial plan. A plan can give you the peace of mind you need to relax and enjoy life - which also leads to better health!

Meet Laurie Kramer, CFP®

Read the February 2026 Financial Planning Focus:

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