With everyone “going green” these days, trying to save money, it’s incredible to think that having green doesn’t mean what it used to mean. Consider Celeste Baranski, a 49-year old engineer with a net worth of around $5 million. She lives in Menlo Park. And, while the couple doesn’t worry much about college for their children, they do worry about their own long-term financial health.
This is the new breed of working-class millionaires. It’s the individuals who keep their nose to the grindstone, but are always looking up into the future. Why? Because long-term care costs are rising, and most studies now confirm that roughly 50 percent of people living today will need some type of long-term care.
Retirement pensions are disappearing or being scaled back. Retirement plans all over the world are on shaky ground as world economies battle through a seemingly never-ending recession. Not only those, millionaires are being ousted by billionaires. In the 1970s, a million would allow you to live the lifestyle of a rich and famous person. Now, it means that you still have 20 more years to work just to retire comfortably.
And don’t forget about inflation – it’s always around the corner, waiting to demolish your savings.