You’ve probably already heard that $5 million is the new $1 million. The millionaire club isn’t what it used to be. It takes more wealth today to reach the type of financial health and freedom most of us desire. But, secure financial health for people with $5 million-plus in liquid investable assets can be achieved through a few simple steps.


1. Enjoy a modest and conservative lifestyle.

How often have we all heard the story about a wealthy millionaire or billionaire living way below their means? In fact, the world’s third wealthiest man, Warren Buffett, is known to live quite a modest lifestyle. Rather than spending his $80-plus billion fortune on a lavish lifestyle, Buffett lives in the home he purchased in the 1950s and operates on a frugal budget, considering his substantial wealth.

Buffett isn’t alone in his understated standard of living. Savvy millionaires develop smart financial habits that are instrumental in helping them to become successful. Think about it. Rich people don’t get wealthy by spending all of their money. Millionaires tend to do two things: they save their money and they make sage financial decisions, some of which involves smart investing to grow their money.


2. Invest rather than spend.

The majority of millionaires choose to invest a good bit of their money. Most of them consult with private wealth managers to help them create a winning investment strategy that will grow their money and preserve their wealth. This type of strategy usually involves diversifying investments to help manage and minimize risks. This could mean investing in a combination of stocks, bonds, businesses, mutual funds, or other avenues.

A private wealth management firm can be instrumental in helping you determine the best vehicles for increasing your wealth. They’re the best experts at assessing your overall financial health and helping you explore the best ways to build a stronger portfolio.


3. Don’t neglect charitable giving.

It may sound cliché, but giving is good for the soul. But, that’s not all. The wealthiest Americans give to charities as a way to reduce their taxable income and offset their tax liabilities. This can be achieved by giving cash or by even donating appreciated stock, which can prevent you from having to pay taxes on the capital gains.

While at the very heart of giving, there should ultimately be a desire to help the greater good, it doesn’t hurt your financial health to distribute your wealth in places that will benefit others as well as your own pocketbook. As Forbes points out, the smartest and richest of Americans do it every day.

Financial wealth is about balance in all areas, including what you choose to give away. Charitable giving offers a return that you don’t see in dollar amounts, but rather investing in a cause. Because of that, it’s good to choose a cause you believe in, while being as generous as you can in a way that’ll benefit the recipient and you.


4. Get advice from experts.

As a millionaire entrepreneur, you’re undoubtedly resourceful and clever all on your own. You’ve worked hard to get where you are and have made many wise business decisions to achieve the level of success you have. But, even the savviest entrepreneurs understand that their financial health can benefit from expert advice. Like many of the super rich, Mark Zuckerberg has a wealth manager. If it’s good enough for the wealthy entrepreneur, doesn’t it make sense for you?

Having a $5 million-plus of liquid assets is something to be proud of. But, amassing a healthy financial portfolio is about more than just numbers. It’s about maintaining your wealth and continuing to grow your wealth. Ultimately, it’s about financial freedom and security.

Wealth management involves comprehensive financial planning to help you design a master plan that will create the best financial health for your portfolio. A wealth management firm understands how to analyze investments, factors that affect the markets, hedging strategies, stocks, bonds, and more.

The Badii Group has helped its ultra-high net worth clients achieve the level of financial health that focuses on meeting objectives while maintaining their financial freedom. We can help devise a smart financial plan for you through wise investments, income deferrals, and focused financial management. Contact us today to learn how we can help you reach your short and long term financial goals and have the financial health your portfolio is meant to have.