Why wealthy people continue to work
Most of us dream of the day when we win a lottery or come into a big inheritance and can call it quits – no more commutes, no more office drama or dealing with the boss, no more stressful deadlines. Unfortunately, the majority of us will never purchase that lucky lotto ticket or be the beneficiary of a rich relative.
There are some with enough accumulated wealth making it possible for them to quit working forever and go on a permanent vacation. How do these high-net-worth individuals manage to reach the point in their lives when they can sit back and say, “I don’t need any more money”?
They understand that one source of income, their earned income, might not last forever, so they lessened their risk by having multiple income streams. For example:
- Owning a business or corporation
- Having a diversified portfolio
- Investments in real estate
- Through the reinvestment of earned interest and dividends
They also hire accountants whose job is to help protect, maintain, and enhance their wealth by providing specialized advice for complex tax planning and asset protection planning.
The question becomes why wealthy people continue to work when it’s no longer a necessity.
It’s not about the money
There isn’t one simple answer as to why wealthy individuals continue to work except that they’re not doing it for the money. Their decision to remain in the workforce is usually based on a more complicated set of factors
For some ultra high-net-worth individuals or “billionaires”, work is who they are, it’s their identity. However, for many HNWIs, it’s about how they spend their time. Take, for example, the Silicon Valley software millionaires. Very few retired, presumably because they were already doing what they love.
For others, it’s about what they do with their money. Sure, people like Warren Buffet and Oprah Winfrey could live on vacation for the remainder of their days. But, instead, they are focused on a legacy; continuing to improve their companies, ensuring their wealth is earmarked for charitable causes, and what impact they’ll have made on the world.
Continuing to grow
For high-net-worth individuals, working is about making money, but it’s also about learning new things, about being challenged, about influencing others, about being productive and contributing to society in meaningful ways. It’s also about creating generational wealth that they can pass down to their children, their grandchildren, and generations to come.
At GYL CPAs and Advisors, see all we provide in our comprehensive accounting services for HNWI clients and their families.