By: Marcy Paulson
It’s not only the privileged few who are enjoying retirement. As a matter of fact, many quietly save for that day with no one ever knowing they have a million dollars or more in their bank accounts.
Joe Schmitz Jr., CEO of Peak Retirement Planning Inc., coined the concept of the “Midwestern Millionaire.” This unique group of high-net-worth individuals bears no resemblance to the flashy stereotype conjured up by the word “millionaire.” According to Schmitz, joining this group simply requires a high degree of discipline, diligence, and strategic planning.
Defining the Midwestern Millionaire
“While the name implies geographic boundaries, Midwestern Millionaires are more aptly defined by their core values than their zip codes,” says Schmitz. “As a group, these millionaires embody the Midwestern virtues of hard work, diligence, and frugality.”
As Schmitz explains, the Midwestern Millionaire makes prudent financial choices throughout their life. They’ve been diligent savers, investing wisely and avoiding frivolous expenditures, and understand the inherent risks of investing, including those associated with market fluctuations, political shifts, and inflation, among other risks.
In terms of hard work, this group understands the value of a dollar earned and seldom shies away from putting in the effort required to achieve their goals. They practice mindful spending, often prioritizing long-term gains over short-term pleasures, and know the importance of accumulating savings to build a nest egg for future financial security.
Becoming a Midwestern Millionaire Involves Saving and Budgeting
The financial planning that creates a Midwestern Millionaire begins with a disciplined approach to saving and budgeting. People take the first step by automatically directing a portion of every paycheck to a savings or investment account, which ensures consistency and reduces the temptation to spend frivolously.
The next step in establishing this mindset involves creating a detailed budget to understand every penny that comes in and goes out. Tools like apps or spreadsheets enable diligent savers to maximize each paycheck and maintain meticulous records.
Finally, aspiring Midwestern Millionaires establish an emergency fund to protect their savings. By allocating three to six months’ worth of living expenses to an easily accessible account, they create a safety net to support them during unforeseen financial issues.
To Build Savings, a Midwestern Millionaire Employs Intelligent Investing
Strategic investing is critical to growing wealth. To avoid putting all their eggs in one basket, Midwestern Millionaires diversify assets across different sectors, regions, and asset classes. This has the distinct benefit of mitigating risk.
In terms of investing, Midwestern Millionaires practice patience and focus on long-term gains. They know that market fluctuations are inevitable and rely on historical data showing that long-term investments tend to yield positive results due to compounding interest.
“This group knows the value of seeking professional guidance,” notes Schmitz. “They appreciate that successful investing requires capital and the experience to navigate market ebbs and flows. They work with CERTIFIED FINANCIAL PLANNERS and investment advisors to tailor long-term plans suited to their specific risk tolerance and goals.”
Becoming a Midwestern Millionaire Necessitates Strategic Planning
As Midwestern Millionaires approach retirement, financial complications increase. The growing complexity necessitates careful planning to safeguard and grow the wealth they have so carefully accumulated.
“The Midwestern Millionaire understands that taxes erode wealth if not managed properly,” Schmitz explains. “Efficient tax planning may help ensure that more money remains in your pocket, but tax benefits vary based on individual situations.”
Midwestern Millionaires maintain a steady income flow even during retirement. Their strategy relies on multiple income streams such as Social Security, pensions, annuities, dividends, and rental income. This diversified approach can help provide stability if one source falters, though income strategies should be personalized to individual needs.
While planning for this retirement income, the Midwestern Millionaire understands that healthcare costs can represent a significant expense. Rather than leaving their health to chance, they take the long-term approach, planning against unforeseen medical expenses that derail so many retirees’ financial stability.
While still working, many in this group take advantage of health savings accounts as a tax-advantaged way to save for medical expenses. They familiarize themselves with Medicare options and supplementary plans to cover gaps.
Finally, these savvy investors and savers draft well-defined wills to ensure their assets are distributed according to their wishes. They use trusts to gain tax benefits and protect their assets from legal disputes. They make themselves aware of estate tax thresholds and seek strategies to minimize liabilities.
“Prudent estate planning exemplifies the long-term vision typical of the Midwestern Millionaire,” says Schmitz. “Their planning ensures that their wealth transcends generations and passes efficiently to family or the charities closest to their heart.”
Adopting The Midwestern Millionaire Mindset Anywhere
Becoming a Midwestern Millionaire demands discipline, strategic planning, and steadfast adherence to time-tested financial principles.
“While not guaranteed, becoming a Midwestern Millionaire involves adopting a long-term state of mind,” concludes Schmitz. “It’s about living by the strategies and values that ensure financial well-being. With professional guidance, individuals may increase their potential for financial stability in retirement.”
Disclaimer: This post was authored by an external contributor and does not represent this publication’s opinions and has not been edited for content. The information contained herein is provided for informational and educational purposes only and should not in any way be construed as investment advice. This publication does not make any recommendation to buy or sell any security or any representation about the financial condition of any asset, company, or investment. Results may vary, and achieving financial stability or a high net worth requires personalized planning and consultation with financial professionals.
Published by: Holy Minoza
