Personal Finance

I'm in my mid-40s with $7 million to my name and I'm a nervous wreck worried about mismanaging my money

Christy Bieber

Published: January 28, 2025 11:30 am

Having a lot of money does not always free you from financial worries. Just ask a Reddit poster with $7 million who started a thread recently because he is “freaking out” about the possibility he is mismanaging his funds. 

The Redditor is 45-years-old and hopes to retire in his mid-50s so he has around a decade left to work and grow his wealth. He has a paid-off home, $500K in cash, $1.75 million combined in 401(k)s belonging to him and his wife, $1 million in company stock, $400K in 529 accounts, and another $220K in a Roth IRA. His wife has a Roth IRA as well, although he is not sure how much hers is worth.  

Despite the fact he has a pretty good size fortune and plenty of time for compound interest to work its magic and make him even richer, he’s worried about whether he’s made investing mistakes that overcomplicated his life, that have already led to losses, and that could lead to more losses in the future.

So, what should he do to fix the situation?

Keeping things simple can be the best approach

First and foremost, the Redditor is correct in his concerns that he’s made his situation too complicated.  That’s not necessarily because he has a long list of funds he has invested in, including some actively managed funds that carry a high risk and that he’s “gotten killed” on. It’s necessarily because he is worried he bought too many bonds either. The reason that we know he has made things too complicated is because he has $7 million and he’s stressing about how to manage his money. 

When you have $7 million, you can invest in safe, reliable assets like an S&P 500 index fund and can earn enough money to live on and then some — as long as your spending is not completely out of control. If you enjoy investing in a ton of different funds or even buying shares of individual stocks, you can certainly do that as long as you know how to do your research. But if you’re constantly worried about what your investments are doing or whether your money is in the right place, then simplifying things is the best move — and investing heavily in an S&P index fund is a great way to do it.

S&P index funds track the performance of around 500 large U.S. companies, they have very low expense rates, and the S&P 500 has consistently produced 10% average annual returns so there is very minimal risk as long as you are a long-term investor. The famed investor Warren Buffett has made clear that he believes S&P funds are the right choice for the majority of people who are not prepared to be active investors. 

Buffett says you should put around 90% of your assets into an S&P fund and the rest into bonds. The OP can do this and then never look at his portfolio again and he should be in great shape. Since he’s concerned enough to ask strangers on Internet forums about his investing strategy, he probably should do this. 

Get help if you are struggling with money management

The OP here may also want to talk with a financial advisor who can help him simplify his investment plan and overcome his worries. He has expressed concern about working with a bad advisor in the past who shared high fees. However, this doesn’t mean he should give up on professional advice forever.

A certified financial planner (CFP) who works on a fee-only basis can provide invaluable help and work with him to create an investment strategy that makes money worries a thing of the past — as they should be for someone with $7 million in his mid-40s.