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15 Popular Retirement Advice Rich People Don’t Always Follow

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Popular retirement advice rich people don’t always follow often involves conventional strategies like conservative saving, minimizing spending, and relying heavily on traditional retirement accounts. This divergence from typical advice highlights how financial abundance allows for more flexible and dynamic retirement strategies.

1. Diversify Beyond the Stock Market

Diversify Beyond the Stock Market.
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It’s not just stocks and bonds for the elite. They’re also eyeing art, vintage cars, and maybe a vineyard or two. A study by Knight Frank showed that high-net-worth individuals hold a significant portion of their wealth in alternative assets.

2. Don’t Rely Solely on 401(k)s and IRAs

Don't Rely Solely on 401(k)s and IRAs
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While most are busy maxing out their 401(k)s, the rich are playing a different game. They use a broader range of tools, from real estate to private equity. As there is stark differences in retirement savings habits between income groups.

3. Buying vs. Renting Property

Buying vs. Renting Property.
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The mantra “buy, don’t rent” isn’t a golden rule for the affluent. Many wealthy individuals prefer the flexibility of renting, especially in volatile markets. Data from the Federal Reserve’s Survey of Consumer Finances indicate a varied approach to property ownership among the wealthy.

4. Continuous Investment in Education

Continuous Investment in Education
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Learning doesn’t retire at 65. The rich often continue to invest in their education. Also, they often see retirement as a time to explore new interests, learn new skills, and even start new businesses.

5. Networking and Relationship Building

Networking and Relationship Building.
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For the wealthy, retirement isn’t an end to networking. Building relationships continues to open doors to new opportunities which makes them psychologically healthy.

6. Early Retirement Isn’t Always the Goal

Early Retirement Isn't Always the Goal.
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Retire? Please.The concept of retiring at 65 is more flexible among the affluent. Many enjoy their work and choose to continue. Also they choose to stay involved, often pivoting to advisory roles or passion projects. A study by the Journal of Economic Ageing found that job satisfaction correlates with later retirement among successful individuals.

7. Stop Earning Money

Stop Earning Money.
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For the rich, retirement isn’t the end of income. They often have investments, businesses, or ventures that keep the cash flowing.

8. Cut Back on Risky Investments

Cut Back on Risky Investments.
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Whereas the average retiree might shy away from risk, the affluent often continue to dabble in high-reward investments.

 9. Health Investment Over Health Insurance

Health Investment Over Health Insurance
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The rich often focus on investing in their health, not just insuring it. Instead of just relying on insurance as a safety net for medical emergencies, they view spending on their health as an integral part of their lifestyle, seeing it as a long-term investment that can lead to a better quality of life and potentially lower healthcare costs in the future.

12. Avoid Debt

Avoid Debt
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Contrary to popular advice, some wealthy retirees leverage debt smartly to maintain liquidity and finance new ventures.

11. Worry About Leaving an Inheritance

Worry About Leaving an Inheritance.
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While leaving a legacy is nice, many wealthy retirees prioritize living their best life now over leaving a fortune behind.

13. Stick to a Fixed Income

Stick to a Fixed Income.
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The concept of a fixed income is almost alien to the wealthy retiree, whose income sources are diverse and often growing.

12. Plan for a Short Retirement

Plan for a Short Retirement.
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With access to better healthcare and lifestyles, the rich often plan for a longer retirement, adjusting their financial strategies accordingly.

13. Rely Solely on Social Security

Rely Solely on Social Security.
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For many wealthy individuals, Social Security is a drop in the ocean compared to other income sources.

14. Live a Quiet Life

Live a Quiet Life.
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Retirement for the rich can be a time of increased social engagement, philanthropy, and public life.

15. Ditch the Stocks, Go for Bonds

Ditch the Stocks, Go for Bonds.
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Conventional wisdom suggests shifting to bonds for safety in retirement, but many wealthy retirees maintain a significant portion in stocks. They’re playing the long game, even in their golden years.

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