First Generation Millionaires
Self-made successful people have my deepest respect. Anyone who has worked hard for something appreciates the time, effort and discipline that it takes to accomplish a significant goal. They understand the perseverance, mental toughness and intensity required for success. First generation millionaires are cut from this same cloth of distinction. The first-generation millionaires that we work with have several characteristics in common: they have a strong work ethic, are willing to take on calculated risks, have a passion for what they do and are not derailed by obstacles that come their way. They do not make excuses, are strong thinkers and connect with others to leverage expertise so that they can focus on theirs.
As net worth grows from six to seven figures, there are many elements that we focus on.
Keeping an updated net worth statement is important, as it keeps your finances organized and begins a layout from which decisions can be made. Retirement projections can help us determine how long you must work. Complex financial planning software performs a multitude of useful tasks that are only as smart as the person using the tool and interpreting the data. A tax report helps you understand what is likely your largest lifetime expense, and in many cases, uncovers opportunities to tax-plan. Having adequate diversification across your investment assets is generally well-understood by this point, however, having adequate tax-diversification may have been overlooked. Tax diversification should be based on both your current and future tax considerations. Managing risk can be done in many different ways, even transferring some risks to insurance companies rather than assuming certain risks to your own personal finances.
Adding a second comma to your portfolio is both a celebration and a turning point. Many of the people that we work for say it makes them both excited and a bit nervous, as the stakes have risen in becoming a self-made, first-generation millionaire.
LouAnn Schulfer of Schulfer & Associates, LLC Wealth Management can be reached at (715) 343-9600 or louann.schulfer@lpl.com TheWealthInformationLady.com SchulferAndAssociates.com
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
