7 Habits of Quietly Wealthy Retirees, According to Kevin Lum
Written by
Kathryn Jackson
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Jenna Klaverweiden
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Some retirees build wealth quietly, without flashy purchases or dramatic lifestyle changes.
According to certified financial planner Kevin Lum in a recent video, their financial success is built over decades. Check out these seven habits that quietly wealthy retirees have in common.
Also see five simple habits quiet millionaires swear by.
1. Be a Lifelong Learner
Lum mentioned that quietly wealthy retirees are constantly learning more or honing their skills that help them make better decisions in all aspects of their lives.
“That curiosity compounds over time. The more they learn, the better decisions they make … Lifelong learners see connections that other people miss,” he said.
2. Have Professional Careers
Another thing that quietly wealthy retirees have in common is they often chose a career with good benefits and made regular contributions to a 401(k), Lum explained. He noted that most have “very normal careers.”
A Ramsey National Study of Millionaires shows that the top five professional careers of millionaires mentioned were attorney, management, accountant, teacher and engineer.
3. Invest In ‘Boring’
When speaking about his wealthy retired clients, Lum said they have very simple portfolios and typically invest in small business, real estate and index funds.
According to an article by Hanna Horvath, CFP, for most people, real wealth isn’t built by striking it big or perfectly timing the market. Instead, she explained that it comes from allowing proven strategies, like index investing, to work over time.
4. Be Patient and Consistent
Lum said the quietly wealthy understand that building wealth takes decades of consistent, patient actions.
According to financial influencer JC Rodriguez, who shared on Fox Business’ “Varney and Co.,” the “quiet millionaires” he has interviewed say that their wealth isn’t built on flashy moves but on steady consistent habits of investing over time.
5. Value Happiness and Security Over Status
Most of the wealthy retirees encountered by Lum tell him they value happiness and security over status. Financial independence and spending time with family and friends are important to them.
Remaining socially engaged improves quality of life and is associated with better health outcomes and greater life satisfaction among older adults, according to USAging.
6. Spend Intentionally
Lum’s happiest wealthy retiree clients are intentional with the way they spend their money and have let their money become a tool to live a better life.
Faron Daugs, CFP, said that while his millionaire clients enjoy some of the finer things in life, they typically do not overspend, as reported by CNBC Select. He explained that they will upgrade to economy plus, but not first class, when flying and will avoid upgrading their cellphones as long as they are functional.
7. Enjoy Simple Hobbies
Contentment is a goal for the quietly wealthy retiree, Lum noted. He explained that they often talk about the simple pleasures enthusiastically and not the amount of money they have.
Overall, what it comes down to is habits that look simple from the outside but are intentional underneath. These quietly wealthy retirees focus less on appearances and more on happiness, security and peace of mind. They value financial peace more than showing visible wealth.
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