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What it’s Actually Like to Be a Millionaire

Ever wondered how life as a millionaire is? While it definitely has its perks, the saying ”more money, more problems” is also true. There’s always someone trying to one-up you, from close friends, family members, and professionals to random strangers. Let’s look at this in more detail.

1. You May Face More Legal Lawsuits Than You’d Like

Although you don’t have to be wealthy to get sued, your chances of becoming the target of lawsuits may rise once you join the millionaires club. Once the people around you and strangers know you’re rich, those feeling jealous and vengeful could take advantage of any chance to take a piece of the pie, even if that means filing irrational, pointless lawsuits. The good thing about being a millionaire is you can easily afford to hire a good attorney to put together a defense against frivolous and real lawsuits. Even if you’re genuinely a good person, having a millionaire amount of money makes you a tempting target. So, establish a professional relationship with the best attorney your money can buy to safeguard your assets.

2. You Owe More Taxes

Here’s one reality you’ll have to make peace with, as there’s no way of legally escaping it. You’ll owe more in income taxes as you earn more money. Chances are you’ll hire an accountant to crunch the numbers and determine the taxes you owe the state and federal governments, but it’s best to psychologically prepare yourself for a much higher tax bill. It typically comes with the territory.

The sad part is that even your beneficiaries will feel it. According to Bochnewich Law Offices, beneficiaries of multimillionaires in California may be required to pay up to 40% of their inherited assets in federal taxes. Yeah, that’s right. When you come across such a fact, you understand why they say ”more money, more problems.”

3. You Can’t Always Trust Those You Hire

Whether you became wealthy through an inheritance or other windfall, run an enterprise, or are simply a hard worker, you’ll likely hire a team to help you manage your newfound wealth. Having a money manager, accountant, or financial advisor on your side makes sense. However, occasionally, even those you think you can trust may be crooks.

When considering people to add to your team, only onboard the most qualified candidates with a good reputation to back them up. While time is money, this is the one place you don’t want to rush the process. Take your time to conduct your research, which should involve a background and criminal history check. Don’t hesitate to ask for references and contact any of their former clients or employers.

The same applies to professionals you hire for your home’s needs. For example, Forbes lists the top five indicators that it may be time to replace your water heater: age, frequent malfunctions, high energy costs, lack of hot water, and tank leakage. As a millionaire, a water heater technician may recommend a replacement even if it doesn’t have any of the issues in this list simply because you can afford it.

Another area where you may experience this is with warranties. The majority of businesses, according to Home Guide, give a three to 10-year warranty. When you’re rich, you may find that some companies intentionally give you the lowest warranty period or play some games when you want to make a claim, so you end up using your own funds. The most important thing is to trust your gut. If you’re feeling uneasy about someone, you’re better off not hiring them.

Most people think that being a millionaire is all roses. Sipping champagne by the beach, buying everything you want, going on vacations, and all the finer things of life. While it’ll improve your overall quality of life, joining the millionaires club isn’t all it’s cracked up to be. It comes with a unique set of challenges.