And you thought you had it bad

From Forbes.com


I got a call from a newly "rich" executive. Having worked 60-hour weeks for years and now ready to retire at 55, he sold his business for $4 million. He was ready to live out his dream life and live off that tidy nest egg. The problem is, to do so--on $4 million--he must cut his standard of living.
It's the plight of the "mMillionaire" -- the middle-class Millionaire.
Mansions and yachts are out. The mMillionaires who want to retire before age 65 or 72, find they must live in three- and four-bedroom homes and drive mid-priced four-door sedans and mini-vans.
They are your neighbors--millionaires who live middle-class lifestyles even though they may have millions in liquid assets.

These mMillionaires have between $2

million and $10 million of investable assets, beyond their homes. Many have sold businesses or inherited money, yet few believe they can retire and continue living the high life.
The key question facing the mMillionaire is, "Can I continue to live the way I am living for the rest of my life?" The answer for most of these millionaires is "no."
Just a generation ago, a person with $2 million or more in liquid assets would have had enough for a secure retirement. But not today. Combine longer life expectancies and the rising costs of health care, food, transportation and property, and you have financial challenges ahead for the mMillionaire.
When Social Security was passed 72 years ago, life expectancy was less than 70. Now it's well above that and may continue to rise with advances in medical treatment. As a result, the mMillionaires in this high net worth class are finding they must scale back their lifestyles or delay retirement. That's something most of them, who are high-earners today, can't imagine.
For many of the executives and mMillionaires that I speak with everyday, this comes as a shock. Often their biggest obstacle is changing their own attitudes about what their wealth can afford them. Some are reluctant to embrace projections about their nest eggs' staying power. They believe that lower expenses in retirement will offset inflation and lost income.
Even with no mortgage or tuition payments, many mMillionaires underestimate the effects of inflation, especially on the cost of health care services for the aging.
We find that people don't always want to confront bad news. There's no question that more people are accumulating wealth at an unprecedented rate. They're living the good life, banking on retiring when they want to and continuing that quality through retirement. What they haven't counted on is that retirement can be a 40-year experience and that conditions can change drastically. In fact, in about 30 years, people will need more than $2 million to equal the purchasing power of $1 million today.
Many mMillionaires who are used to running businesses or managing others often want very specific answers on how to manage their middle-class millionaire status. Unfortunately, there's no formula for long-term financial security. Everyone's needs vary.
But, there are certain principles that can guide the mMillionaire's actions. If you are an mMillionaire, congratulations, but there are still a number of things you should keep in mind--ranging from managing your tax liabilities, to taking a really critical look at your investment portfolio (are you too heavily in tech stocks or consumer durables?), and of course guarding your estate, the nest egg you will leave behind.
Carrie Coghill Kuntz is a certified financial planner in Pittsburgh. She is a registered representative of Commonwealth Financial Network, a member of the Financial Industry Regulatory Authority and the Securities Investor Protector Corporation.
Copyrighted, Forbes.com. All rights reserved.


Do you suppose this was written to be taken seriously? Or just having a little fun?