![]() Inflation is a concern for everyone, because it has a way of gradually reducing the value of wealth over time. But the rich worry about factors like the impact of inflation and how the world might change in the coming years. It’s hard to know if the rich worry more about the big picture than others, or maybe just that it’s more likely to draw their attention. The Big Picture and How it Might Affect Their Finances There are always contingencies that need to be planned for. When you consider the financial implications of long-term care alone, it’s easy to see why the rich find it difficult to arrive at a final financial destination. ![]() And they may only cover a flat amount, say $5,000 per month. What’s more, long-term care policies only cover a limited amount of time, typically three to five years. But the cost of that coverage rises as you get older. It is of course possible to buy long-term care insurance. Even if you’re a millionaire, the cost of a multi-year nursing home stay could eat up a substantial chunk of your wealth. And if one spouse is in a nursing home, the other will still need to cover living expenses. Nor does it include special medical care that may also be necessary. And that doesn’t factor in the steady annual price increases that are sure to follow. If you were to go into a nursing home for 10 years the cost would exceed $1 million. Even if you’re rich, that’s a scary number. The average cost of a private room in a nursing home has reached $8,365 per month, or more than $100,000 per year. People living longer than ever which is a concern for everyone, including the rich. They may lack the psychological profile to simply kick back and relax on a permanent basis. Many of the rich are Type A personalities, making them highly driven and competitive. There may also be psychological factors at play as well. Giving it up for a life of leisure might work for a short time, but the emotional loss can be devastating. If you began a career early in life, then spent decades building it, it can become part of who you are. Though we often think the majority of the rich came into their wealth through inheritance, the reality is most millionaires are self-made. Someone with a particularly lucrative career may be earning hundreds of thousands of dollars per year, and not be willing to leave it on the table.īut there’s also the emotional side of work. After all, most of the rich earn incomes that are well above average. Part of it is certainly the promise of building even more wealth. And while it seems counterintuitive, they may be happier continuing to work than retiring.įor those who are self-employed or running companies it can be extremely difficult to let go. The career or business becomes part of who they are. Many of them have either high-powered careers, are running companies, or have been self-employed for a very long time. The situation may be more extreme with the rich. Many people so closely identify with their careers that the very thought of retirement makes them uncomfortable. Some people bond with their careers on a deeper level than others. But when you set out on a certain course in life, it isn’t always easy to suddenly stop. A rich person may reason if I’m doing well with $2 million, I’ll be doing even better when I reach $3 million.Ī self-fulfilling prophecy? Sure. And of course, it can also be the human tendency toward “more is better”.
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