Retired millionaires reveal their most important financial milestones, and you might be surprised at their answers.
Have you always dreamed of becoming a millionaire? If that is one of your life goals, then this may shock you: Many rich people say finally hitting the million-dollar mark is really “not that big a deal.”
According to CNBC, new data from Ameriprise Financial reveals that a mere 6 percent of retired millionaires say building up a seven-figure net worth is their most important financial achievement. A whopping 40 percent of millionaire retirees say reaching millionaire status was no big deal, especially when compared with other big money milestones.
Ameriprise Financial released this “Pay Yourself in Retirement” report earlier this year, which is based on a survey of more than 1,300 Americans. They recently conducted a new survey with 432 millionaire retirees included in the initial survey.
CNBC says based on the new Ameriprise survey, rich retirees think these five financial milestones are more important than becoming a millionaire:
- Retiring: 55 percent
- Paying off home mortgage: 43 percent
- Having the ability to pay cash for a new car or other special purchase: 31 percent
- Paying for children’s education: 28 percent
- Reaching a certain annual income level: 20 percent
Marcy Keckler, vice president of financial advice strategy for Ameriprise, tells CNBC that the new survey results are revealing:
“The message is, the money itself isn’t as important as what it helps them do. It’s more important that it lets them retire, or pay off their mortgage.”
Of the 432 millionaire retirees surveyed by Ameriprise, 70 percent said they don’t consider themselves wealthy. Nearly half of respondents said you need to amass at least $5 million to be considered rich.
A growing number of Americans are reaching millionaire status these days. In 2015, the U.S. reached a record 10.4 million millionaire households, an increase of 3 percent from 2014. Kevin Meehan, an Illinois-based certified financial planner, tells CNBC:
“One million is historically a target that people have in mind, but sometimes when people get to that target, they don’t feel like they have accomplished as much.”
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