Many millionaires build their fortunes by embracing conventional financial wisdom. And while everyone’s financial situation is unique, I often find that listening to the advice of those who have previously found success can help, even if it sends my own research in a different direction. Here are some of the most interesting pieces of money advice I’ve found from millionaires (and billionaires).
Millionaires’ Advice Related to Retirement
Financial expert and author David Bach, a millionaire who loves to share how he became a millionaire, provides a solid piece of advice about not putting all of your eggs in one retirement basket. “Social Security was never intended to be a retirement plan. At most, it was designed to provide an income supplement,” Bach says.
Diversifying your assets is important, but Walmart heiress Alice Walton, one of the world’s richest women, knows that diversification alone isn’t enough. “One of the greatest responsibilities I have is to manage my assets wisely,” Walton says, “so they create value.”
Another astute billionaire, Warren Buffett, believes in a long-haul approach to preparing for the future. Or as he puts it, “Someone is sitting in the shade today because someone planted a tree a long time ago.”
How Could You Put This Advice to Use?
- Start saving for retirement as early as possible, if not right now.
- Don’t rely solely on Social Security for retirement savings.
- Take the initiative to be involved in your retirement accounts.
- Think long-term.
Millionaires’ Advice Related to Generational Wealth
Dallas Cowboys owner and real estate mogul Jerry Jones is setting up his three children (Stephen, Jerry Jr., and Charlotte) to benefit from generational wealth. That’s why Jones is committed to preserving the wealth he has now. “Have a big front door and a small back door. Take in as much as you can and spend as little as you can,” Jones advised one-time Dallas Cowboys star Emmitt Smith, per CNBC.
Financial guru Dave Ramsey, himself a millionaire, dispenses lots of advice about generational wealth. Here’s one especially pertinent Ramsey quote tied to generational wealth: “Earning a lot of money is not the key to prosperity. How you handle [your money] is.”
Shark Tank’s Daymond John also shares his personal wealth philosophies. One nugget in particular, per Entrepreneur.com, may resonate with those trying to build generational wealth: “Don’t focus on you, focus on what you can give others.”
How Could You Put This Advice to Use?
- Save more, spend less.
- Turn to trusted advisors to help you be financially successful.
- Talk to your beneficiaries and family about your financial future, intentions, and plans.
Millionaires’ Advice Related to Gold
Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, says gold should make up a 5–10% share of an individual’s portfolio. “If you don’t own gold, you know neither history nor economics,” Dalio has said, per the Insider website.
John Paulson, the wealthy president and portfolio manager of Paulson & Co., is similarly bullish on gold. “Gold does very well in times of inflation,” Paulson said in 2021, according to Kitco News. “The last time gold went sort of parabolic was in the ’70s when we had two years of double-digit inflation.”
Mark Mobius, the well-to-do founder of Mobius Capital Partners, also is a firm believer in gold. “Currency devaluation globally is going to be quite significant next year given the incredible amount of money supply that has been printed,” Mobius said in 2021, per Kitco News. “It is going to be very, very good to have physical gold that you can access immediately.”
How Could You Put This Advice to Use?
- Revisit your portfolio’s precious metals allocation.
- Track gold prices and products for the best time to expand your holdings.
- Increase your financial literacy as it relates to alternative assets.
Financial success looks different for everyone. If you believe yours should include the time-tested protection and growth opportunities of precious metals, call U.S. Money Reserve for a free one-on-one consultation with a knowledgeable Account Executive.
