Personal Finance

I'm in my late 40s and through luck and skill have amassed $12 million - why do I still feel so insecure about money?

Kristin Hitchcock

Published: November 30, 2024 9:25 am

Last Updated: January 30, 2025 11:15 pm

24/7 Wall St. Key Points:

• Feeling insecure at $12 million might seem unusual, but financial anxiety is more common than many realize, even for those who have a high income.
• Working with a professional can provide you with tailored insights you need to help you grow and protect your wealth.
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

I recently came across a Reddit post titled “Insecure at 12MIL.” It caught my attention due to its raw honesty. I really think this is a problem many high-net-worth individuals have, even though it doesn’t get talked about all that much!

The Redditor, a late-40s entrepreneur with a $12 million net worth, expressed insecurity about their financial standing. With 70% of their wealth tied up in real estate, fluctuating annual income, and underperforming cash flow, they asked: how can they transition from risk-taking to stability while still growing their net worth?

He had lots of money but felt very unstable despite this.

Of course, everyone’s financial situation is unique! Here are some of my suggestions for anyone in a similar position:

1. Shifting from Wealth Accumulation to Preservation

Entrepreneurs often thrive on high-stakes risk, but once you’ve built a significant net worth, it’s worth prioritizing preservation. Diversify beyond real estate into more liquid, income-generating assets like dividend stocks or municipal bonds, which offer growth with stability.

2. Focus on Cash Flow Optimization

Real estate that makes less than 3% of equity could benefit from re-evaluation. Selling underperforming properties may be a solid idea. The Redditor may want to transition to higher-yield opportunities like multi-family housing or commercial real estate.

Refinance options may still be viable despite higher interest rates. I recommend consulting a mortgage broker or financial advisor who can help you assess current opportunities.

3. Embrace Professional Advice

Working with a qualified financial advisor isn’t just smart—it’s essential at this level of wealth. No matter what type of advisor you choose, having one can help you tailor your long-term plan to fit your goals and financial needs.

Despite their usefulness, only one in three Americans trust financial planners. It is important to find a good one, but don’t avoid them altogether just because there might be a few bad eggs.

4. Set Clear Goals for the Next Phase

Define what “enough” looks like for you. Is it keeping up with the 1%? Maximizing passive income? Leaving a legacy? You can’t make a solid plan unless you have a goal to work towards.

Once you have clear goals, align your investment strategies to match. Just about every investment vehicle has its place, but only when it helps you reach your goals.

5. Maintain an Entrepreneurial Mindset

It’s understandable to feel uneasy stepping away from risk-taking. These habits likely propelled your financial success, and it can be hard to shift your perspective.

That said, this doesn’t mean you have to completely shy away from all risks. Risks can still be useful if they help you reach your financial goals. You may be taking less risk, but that doesn’t mean no risk.