Who Wants to be a Millionaire?

 Posted on August 20,2015 in Estate Planning

"Who Wants to Be a Millionaire?" is a popular television game show where people attempt to answer a series of questions correctly, working their way up the ladder to reach a million dollars.

However, in than 15 years that the program has been on, less than 20 people have actually reached the million dollar prize level. It appears that if you want to be a millionaire, you have a better shot at reaching your goal with hard work and smart investing instead of trying to win your way there. Still, how does one go about getting there?

People who have reached the million dollar level of income have often developed similar strategies to help achieve a high level of income. These strategies include the following:

• Do not expend time and energy on things you wish you had done in the past; instead focus on the now. For example, do not spend time lamenting over your failure to invest in Microsoft two decades ago and how much you could have earned. Experienced financial advisors recommend investing in a diversified portfolio of stocks, allowing it to grow slowly, but steadily.
• Many people who have achieved a high level of net worth took advantage of the low cost of term life insurance. Investing approximately $500 per year can help insulate your family from disaster should something happen to you.
• Death and taxes—two topics in life you cannot avoid. People may stress about how much they might owe in income taxes. However, instead of focusing so much energy on those numbers, it is better to sit down with a financial planner to determine what your tax rate is and then concede that you really do not have control over that rate and focus on something else.
• When deciding on a financial advisor, it is usually best to work with one who is a "fee only" advisor. A fee only advisor is not paid based on the stocks he or she sells and is therefore only looking out for your best interests when it comes to investments.
• Make sure you are taking advantage of any 401(k) plans that your employer offers. Even if you are only able to take a small percentage of your weekly paycheck to invest, that amount—along with employer match—can slowly build into a sizable amount when you are ready to retire.
• One of the most important pieces of advice that many people who have achieved high income status recommend is to remember to spend money on things that you enjoy. It is one thing to save as much as you can; however, treating yourself occasionally to activities or items that you enjoy can go a long way in keeping you motivated to continue to save your money.

If you have questions regarding setting up your estate plan, or updating a current plan, contact an experienced DuPage County estate planning attorney. Call the law firm of Stock, Carlson & Asso. LLC at 630-665-2500 today.