It’s fun to dream about having complete financial freedom in your golden years, but if you want to retire like a billionaire, you must stick to a well-planned investment strategy, and perhaps reconsider your lifestyle choices and mindset.
Patience is vital; building substantial wealth takes time. Don’t underestimate how much retirement will cost — or how long you might live.
It’s also important to establish goals for this next stage of life and determine what legacy you want to leave behind.
Gain Peace of Mind While Creating a Legacy
How can more retirees have that peace of mind while creating legacies and planning for their estates?
“Take some time to soul search and figure out what makes you happy,” says Carla Adams, founder and financial advisor at Ametrine Wealth in Lake Orion, Michigan.
She suggests making adjustments to your budget so you’re spending less on things that aren’t as important and more on things that truly bring joy.
[READ: Costs to Include in Your Retirement Budget.]
“Tune out the noise — everyone’s social media posts of all the luxurious things they seem to be doing that appear to make them happy — and focus within yourself about what you really want out of life,” Adams says.
Build a Strong Financial Foundation
To successfully retire, investors must start years ahead of their target date by saving and investing wisely.
“By starting early and consistently growing your wealth, you can set yourself up for a comfortable retirement,” says Evan Tunis, president of Florida Healthcare Insurance in Coral Springs, Florida.
He adds that billionaires don’t necessarily invest aggressively but instead take calculated risks.
“They understand that higher risk can lead to higher returns, and they are willing to invest in opportunities that others may shy away from,” Tunis says.
However, he adds, that means doing research and consulting with a financial advisor, a step that many billionaires take.
Invest in Your Physical Health
If you don’t already eat a balanced diet and get regular physical exercise, now is the time to adopt these habits.
A healthy body and mind increase the capacity to work efficiently, pursue opportunities and make wise financial decisions.
Good health also enhances career prospects and increases the probability of being active and alert for longer, all of which can contribute to wealth accumulation.
“Make personal wellness a high priority,” says Chris Urban, founder of Discovery Wealth Planning in McLean, Virginia. “In the long run, this may actually end up saving you money on things such as long-term care and other medical costs and risks.”
Plus, Urban adds, “Without your health, you may not be around long enough to truly enjoy your wealth.”
The Role of Continuous Learning
“Billionaires never stop learning and expanding their knowledge,” Tunis says.
Mental sharpness in retirement is vital for staying engaged, making sound decisions and enjoying an active and fulfilling post-work life.
“Consider taking up a new hobby or enrolling in classes to continue learning and growing,” Tunis says.
Give Back and Find Purpose
“Charitable giving can make the media headlines for billionaires and while we hope it comes from the goodness of their hearts, their donations can be backed by potential tax benefits,” says Brett Wysopal, manager, financial advisor at Secfi in Brookfield, Illinois.
“In working with clients who want to have an impact, a great way to do this is through the usage of donor-advised funds,” he says.
Donor-advised funds are charitable giving accounts that allow the account owner to contribute assets, receive an immediate tax deduction and choose which qualified charities receive donations.
“Giving back to the community not only makes a positive impact, it can also bring a sense of purpose and fulfillment in retirement,” Tunis says.
Create a Luxurious Lifestyle Within Your Means
Nobody wants a life of eating ramen noodles and never having any fun. But while splurging on big vacations or houses may seem like fun at the time, it can come back to bite you.
This is where the concept of selective luxury comes in.
Selective luxury prioritizes quality over excessive abundance. For example, if you value spending time at the ocean more than international travel, budget for beach getaways and consider foregoing that trip to Paris.
“Having a luxurious lifestyle doesn’t necessarily mean spending exorbitant amounts of money,” Tunis says. “It’s about finding ways to enjoy the finer things in life while living within your means.”
If traveling to exotic locations is within your budget, pursue those interests. But if it’s more important that you spend quality time with loved ones, put your resources there.
[See: Top Travel Destinations for Retirees]
Estate Planning
Estate planning ensures the orderly distribution of your assets after you die. You’ve undoubtedly heard about ugly family disputes or even legal complications because the terms of an estate weren’t clear, or maybe you’ve even been party to one.
Careful estate planning allows you to specify your wishes for inheritances, protect your loved ones and potentially reduce tax liabilities, all while providing peace of mind and financial security for your heirs.
“An estate plan is very important, but beyond determining who gets what and by what means, an ethical will –a letter to your heirs about your values that you hope they carry on — will be your real legacy,” Adams says.
Build Social Connections in Retirement
One of the biggest challenges in retirement is creating a community to develop and sustain fulfilling relationships.
People who previously had regular interaction with work colleagues may be surprised to find they miss the social aspect of a job.
“Retirement can often lead to feelings of isolation and loneliness, but it doesn’t have to be that way,” says Tunis.
Building strong social connections and a sense of community can make retirement more fulfilling and enjoyable, he adds. This could involve joining clubs, volunteering or simply reaching out to friends and family.
[Related:Reasons You Shouldn’t Retire]
Retire With a Billionaire Mindset
After creating a budget that helps you live well within your means, Adams suggests finding joy in the simple things in life.
Factors that may enrich your retirement include time with family and friends.
“Once you find an affordable budget and do all of the inner self-work to tune out what everyone else is doing, you will be living the life of a millionaire,” Adams says.
But you can kick that up a notch by adjusting your mindset to forget about keeping up with the Joneses.
“A billionaire has nothing to prove to anyone. Keep that mindset and you’ll be golden,” she says.
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How to Retire Like a Billionaire originally appeared on usnews.com
