Millionaires aren’t immune to sleepless nights worrying about their retirement nest eggs.

“Regardless of how much money you have, people are geared to worry,” said Tara Lawson, senior wealth planner at U.S. Bank Private Wealth Management. “It doesn’t matter if they’ve got $5 million or $55 million.”

A million dollars, while nothing to sneeze at, isn’t what it used to be. “Even multimillionaires worry about money,” said Thomas Martin, senior portfolio manager at Globalt Investments. “Everybody worries about money.”

Money angst is real even for those with seven figures in investable assets, according to Northwestern Mutual’s 2025 Planning and Progress Study. In fact, just one in three (36%) of the nation’s wealthiest citizens consider themselves “wealthy,” and half say their financial planning needs improvement, the study found.

“There are so many different variables that can derail a perfectly good retirement plan,” said Mike Robustelli, wealth advisor at Fortivus Wealth Group.

Big Worries For Big Money Retirement

There are two big reasons why millionaires worry about retirement readiness and outliving their money, says Martin.

“It really has to do with the complexity and uncertainty of it,” said Martin. “Most people don’t have a way of doing the calculations and figuring it out (on their own).”

The top financial concerns that keep millionaires up at night are different from the average American with more modest investment account balances, according to Northwestern Mutual. Millionaires are more worried about making their money last, while regular folks tend to be more concerned about accumulating enough to retire and the financial health of Social Security.

There are three burning questions Americans with investable assets over $1 million seek answers to, according to the Northwestern Mutual study. First, is it possible I could outlive my savings? Next, how will taxes impact me in retirement? Lastly, how can I plan for potential long-term care?

In contrast, the most pressing retirement questions the public are asking are: How much will I need? Will Social Security be there when I qualify for it? What if inflation rises when I’m retired?

“One million dollars is a lot of money … but money alone doesn’t create confidence — financial advice and financial plans do,” said John Roberts, chief field officer at Northwestern Mutual.

Money Concerns For Retirement Are Real

The questions millionaires are asking are legitimate. “Those are the big three (worries),” said Scott Ladner, chief investment officer at Horizon Investments.

Take question one. Can millionaires outlive their savings? Yes, they can. How can a seven-figure nest egg shrink to zero?

There are a few factors at play. One is longevity. A retirement that lasts three decades rather than two, for example, means your nest egg must last longer than anticipated. “People are living longer, (so) the math ends up being more challenging,” said Ladner.

So, if a financial plan doesn’t have spending guardrails in place, millionaires can drain their retirement account. “One factor to consider is how long you’re going to have to make that money last,” said Lawson.

Another wild card is spending. Overspending is a threat to a secure retirement. The money that you have can dwindle if you spend at a rate that is in excess of what your savings and other income sources can support, says Martin.

“We’ve seen that happen,” said Martin. “(Millionaires) think they’re rich and think they can spend whatever they want. And then they figure out, ‘Oh, my money’s all gone.'”

Making A Million Last In Retirement

Creating a budget and sticking to it is the way to avoid running your nest egg to zero.

A millionaire’s nest egg can also drain more quickly if the retirement savings are invested too conservatively, adds Ladner. Too big a helping of lower-returning bonds and cash and too small a helping of higher-returning stocks can be problematic.

“The idea that bonds are a safe retirement asset is a dangerous assumption,” said Ladner. “And if you invest in a pure cash portfolio, I can tell you the day on which you will run out of money.”

Retirement savers must invest for growth to outrun inflation and grow assets enough to fund spending needs, says Ladner. Stocks may be more volatile, but their higher return potential over time makes them a less risky alternative. Of course, your plan must be stress-tested to ensure that it is able to withstand market downturns.

“The idea that I need way more equities in my portfolio in order to give me the best shot at (making my) money last the longest amount of time is antithetical to how most people think,” said Ladner. “You need more equities than you think.”

Craft A Winning Tax-Smart Portfolio

The key is to build a portfolio that does three things simultaneously. It must enable your money to grow, protect against market drawdowns and allow for enough spending to cover essentials and fun things like travel and visiting the grandkids, says Ladner.

It’s also important to accept the fact that there will be periods when spending needs will spike. A financial plan that affords you options to get back on track is what you should be working toward. Having to pull money out of accounts in a down market can also put added strain on a retirement account balance, says Robustelli.

Taxes can eat into a retirement nest egg, too. “Taxes are definitely something to be concerned about,” said Lawson.

Mind Those Withdrawals

Remember, withdrawals from traditional 401(k)s and IRAs are taxed at ordinary income rates, which can be as high as 37%. Money raised from stock sales in taxable accounts is taxed at long-term capital gains rates ranging from as low as 0% to as high as 20%. Most people end up paying 15%, the IRS says. And required minimum distributions, which many high-net-worth folks don’t even need to make ends meet, after age 73 are taxed as ordinary income, too.

Only withdrawals from Roth IRAs and Roth 401(k)s are tax-free. That’s why it’s important to be aware of the type of assets you own and their tax treatment, says Lawson.

It’s important to not only diversify the types of assets you own, such as stocks and bonds, but also to diversify the type of accounts you own by tax treatment. You can also employ strategies such as converting dollars into traditional retirement accounts to Roth accounts so a portion of your assets can be withdrawn tax-free in retirement.

“You need to be able to take money out in a tax-efficient manner, because that means more money going into your pocket,” said Robustelli.

Plan For Potential Long-Term Care

There’s one simple reason why millionaires should plan for long-term care: It costs a lot.

How much? The median annual outlay for an in-home health aide in 2023 was $75,504 and $116,800 for a private room in a skilled nursing home facility, according to Charles Schwab. And with the average American requiring three years of long-term services and support during their lifetime, that means budgeting anywhere from $226,512 to $350,400 at today’s prices.

It’s important to get an idea of how much long-term care could cost. When it comes to funding, options include self-funding or earmarking a portion of your savings specifically for long-term care.

“That’s a great option if you have a really large asset base, but a long-term medical event can be incredibly expensive,” said Lawson.

Fill Your Long-Term-Care Gap

Long-term-care insurance is another option to consider, especially if there’s a gap between cost and what you can fund on your own. A good time to shop around for long-term-care insurance is around age 60, preferably when you are still in good health as premiums will be lower.

“These policies will cover a portion of the cost and protect your assets,” said Lawson. And don’t think Medicare will pay for your long-term care, adds Robustelli. That’s a misconception.

Medicare does not provide coverage for people who need to go into nursing homes indefinitely because they are disabled or can no longer take care of themselves, according to WebMD. Medicare also does not cover assisted living or adult day programs.

The bottom line is that life happens and even millionaires must be prepared for unexpected setbacks.

“You can build this great plan, but there are variables that can derail it,” said Robustelli. “If you’re not properly prepared for it, or don’t plan for it, retirement can look a lot different. It’s all about protecting against the different unknown variables that can pop up throughout retirement.”

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