So, You Want To Be A Millionaire?

According to a report done by Forrester Research, a leading independent research firm based in Cambridge, Massachusetts, apparently "most of North America's millionaires are feeling financially secure, despite.....a decline in assets last year." I'm sure that particular discovery will go a long way to helping you sleep at night, now that you don't have to worry about millionaires anymore.

All kidding aside, why are they feeling secure in the face of dismal market conditions over the last year or two? Is it because they can afford to take a hit every now and then, just get up and dust themselves off, knowing there's a lot more where that came from? Possibly, but not likely.

Nobody likes to lose money, and true, some are in a better position to absorb a loss than others...but normally, people don't become millionaires just by winning the lottery or my inheritance. They work darn hard at accumulating wealth and even harder at preserving it. According to the report, "wealth preservation was the most frequently cited financial goal among...millionaires, followed by retirement planning and tax planning."

Lottery winnings and inheritances aside, I'm thinking a lot of these people began like most of us. The successful ones started early in life drafting a financial plan that identified their goals and objectives, setting their time horizons and implementing that plan. They monitored their progress on a regular basis and adjusted in times of change.

Many worked closely with a financial planner, to start them in the right direction and help them look at the big picture. Planners are just that; they provide a framework as clients' personal circumstances change.

A related report discovered that "80% ... ( of millionaires) are online." It's not surprising that once wealth is made, more time seems to be spent acquiring information that relates to wealth, and what easier way to do it than through financial content or daily newspaper websites.

Times have changes...it's still hard to make a million, but of those who have, fewer are resting on their laurels. Their evolving planning process never seems to stop. That's how they got there in the first place.

Gary Elliot, CFP, is with Partners in Planning Financial Services in Chilliwack, BC, and can be contacted at 604 792 8111.