Achieving a $1 million net worth requires strategic planning and alignment of investments with personal values
From Yahoo Finance: 2025-06-21 12:02:00
Many Americans reach a $1 million net worth through hard work and perseverance. Once achieved, they often struggle with what to do next. Financial advisor Kerry Keihn emphasizes the importance of understanding the composition of the net worth, whether it’s in home equity, investments, or cash. Strategic planning is crucial to maintain and grow wealth.
Keihn suggests aligning investments with personal values, citing the US SIF Trends Report on sustainable and impact investing. Investors can support companies with strong environmental and social practices or fund solutions to global challenges. Keihn emphasizes that investments have the power to shape the future and asks investors to assess if their investments align with their values.
Keihn warns against anchoring bias, noting society’s fixation on $1 million as the ultimate financial milestone. The impact of $1 million on one’s life depends on individual circumstances and financial goals. Tax efficiency becomes crucial with a larger portfolio, requiring strategies like asset location, tax-loss harvesting, and sustainable withdrawal rates.
Reaching a $1 million net worth is an ideal time to reassess financial goals and create a formal financial plan. Keihn advises individuals to analyze whether they are on track for financial independence and make adjustments as needed. This milestone presents an opportunity to ensure that the portfolio supports personal goals rather than arbitrary benchmarks.
Read more at Yahoo Finance: 5 Things You Must Do When Your Net Worth Reaches $1 Million