Here’s why everything changes once you’ve hit $2M for retirement (and not for the better). Can you protect your riches?

Core Insights - The article emphasizes the importance of wealth preservation for individuals with significant retirement savings, particularly those with $2 million, which exceeds the average belief of $1.26 million needed for a comfortable retirement [1] Group 1: Wealth Preservation Challenges - Transitioning from wealth accumulation to protection is challenging, but avoiding common financial pitfalls can ease this process [2] - A significant risk is not knowing one's true lifestyle budget, as $2 million could yield $80,000 annually under the 4% rule, which may vary based on individual spending and location [3] - Lifestyle inflation poses a risk, with only 32% of American millionaires considering themselves "wealthy," indicating a disconnect between wealth and perceived financial security [4] Group 2: Financial Planning and Advisory - Many high-net-worth individuals neglect to plan their retirement budget and lifestyle needs, with 70% of millionaires without a financial advisor believing they know their retirement needs [4] - Engaging a financial advisor is recommended to create a sustainable budget, as $2 million can diminish quickly if not managed properly [5] - Tax implications from withdrawals in tax-advantaged accounts like IRAs and 401(k)s are often overlooked, with only 49% of millionaires without advisors considering tax impacts on their retirement savings [6][7]