As aspirations go, retiring rich with $1 million or more is right up there with winning the lottery. And since hindsight is 20/20, we asked dozens of retired first-time millionaires what they wish they'd known before they walked out the door of their workplace for the final time.
Here's what the millionaires featured in our My First $1 Million series shared with us. You might be surprised to learn that none of the things they wish they'd known has to do with their money.
No. 1: You need a purpose and a plan for how you'll spend your time
While the millionaires noted that accumulating wealth was the main focus of their working years, several realized once they retired that having a plan for their free time — beyond vegging out on the sofa — is just as important as having a financial safety net.
They said that a lack of purpose can make the transition surprisingly difficult, and they learned fairly quickly that if they didn't want to expire of boredom, they needed meaningful things to do to fill their days.
What the millionaire retirees say
- "Retirement isn't about finances. Rather, it's about how you plan to use your most limited resource — your time." — Healthcare CFO, 52, Pacific Northwest
- "It can be challenging not having a purpose in life. Retirement isn't just travel and freedom, you need to have things to fill the time that make you feel useful." — Retired insurance adjustor, 63, Milwaukee
You can learn more about the importance of retiring "to" something rather than "from" something by reading the thought-provoking articles of retirement psychologist Dr. Richard P. Himmer, a contributor to Kiplinger.com's Adviser Intel.
No. 2: The transition can be lonely if many of your peers are still working
The millionaires noted that retiring early or even reaching financial independence before others in your social circle can lead to feelings of unexpected isolation. Having the time and money to enjoy life doesn't mean as much if your friends are still tied to their careers and daily struggles.
So, as Bette Midler sang in the 1970s, "Ya got to have friends."
Or, as Dr. Himmer points out in his article Combating Loneliness in Retirement: Why Strengthening Your Connections Could Lengthen Your Life, with nods to a Harvard study, psychiatrist George Vaillant and director Robert Waldinger:
"The quality of your relationships, not your money or professional achievements, is the strongest predictor of health and happiness in later life."
What the millionaire retirees say
- "There are not enough friends in (my) same position. Many are still struggling day-to-day, or they like the day-to-day struggle." — Attorney, 55, Rhode Island
- "I think (my retired partner's) biggest lesson was that he was alone. Everyone he knew was working, so there was no one to play with." — Film/TV production accountant, 58, Florida
No. 3: Money can buy you financial security, but it can't buy you happiness
Many of the millionaires wish they had understood earlier in life that money is merely a tool for providing security, rather than a direct source of happiness.
They said that while reaching the million-dollar milestone eliminated their financial anxiety, many discovered that wealth alone does not make them feel fulfilled.
What's more, no one else really cares how wealthy you are. In his article Being Rich vs Being Wealthy: What's the Difference?, CFP Andrew Rosen writes: "While there is nothing wrong with growing your assets (I've even made a career out of helping people do just that), at the end of the day, no one cares about how much you're worth and how much money you make."
And as another contributor, CFP Joe F. Schmitz Jr., has noted in his articles: "We always joke with people that you cannot attach a U-Haul behind your hearse."
So while our millionaires say it's definitely worth celebrating when you hit the million-dollar milestone, finding happiness is a whole other challenge.
What the millionaire retirees say
- "Money can only give you peace of mind, not happiness." — Retired middle school teacher, 68, North Carolina
- "Money doesn't satisfy me like I thought it would." — Semiretired entrepreneur, 64, Nashville
No. 4: Delaying retirement because of fear can lead to regret
Several of the retired millionaires expressed regret for working longer than financially necessary because they feared running out of money, losing their identity or lacking a focus.
They've found retirement, early and otherwise, to be exceptionally rewarding.
What the millionaire retirees say
- "I waited until 65 to retire even though I didn't need the money because I enjoyed my job and feared not having that as a focus. Now I know how great it is to be retired with adequate resources." — Retired in-house corporate lawyer, 74, the Midwest
- "Retirement is incredibly fulfilling. Time abundance and freedom are priceless." — Retired physician, 52, Chicago
No. 5: Early in retirement is the prime time for high-energy to-do's, but beware of overcommitting
Some millionaires wish they had prioritized travel and personal enjoyment earlier in retirement, while they had the stamina.
Others regretted immediately overcommitting to obligations — like volunteering or caregiving — without first taking a much-needed (and well-deserved) break.
Retirement does indeed deliver a sudden influx of free time, but energy levels inevitably wane as the years go on, hence the phrase "go-go years, slow-go years and no-go years" to describe the three phases of retirement.
So, really, once you hit the bricks for retirement, don't hesitate to jump into checking items off your bucket list while you're still healthy. But maybe take a breather first if you need it.
Also, try to balance the fun with the commitments — babysitting the grandkids is awesome, but so is time on the pickleball court, traipsing through history in Italy and wine-tasting your way through Napa.
What the millionaire retirees say
- "I would have traveled a bit more earlier in retirement, when I had more energy." — Retired tech industry director, 78, Delaware County, Ohio
- "Once we retired, we jumped right into volunteering, caring for aging parents, etc. I wish we had taken some time 'off' before overcommitting to volunteer work." — Air Force veteran, 68, Duluth, Ga.
To learn more about what makes real-life first-time millionaires tick, see some of our favorite profiles, including a writer in New England, a literacy interventionist in Colorado, an events industry CEO in Northern New Jersey and an early retiree in Western North Carolina.
You can also check out a podcast I did about my three favorite features, with bestselling author and tax attorney Toby Mathis.
And if you're inspired to get in on the fun (please do!), you can submit this Google Form or send an email to MyFirstMillion@futurenet.com to receive the questions.
We know who our millionaires are, but they are completely anonymous to readers. Don't be shy — the more detailed you are in your answers, the more likely you'll be featured.
