Millionaires Have These 3 Financial Priorities. You Should Have Them, Too

For some people, attaining wealth is a matter of luck. But for many, it's a matter of hard work and patience.

A lot of people with wealth don't get to that point overnight. Rather, they work hard and save well for many years until they reach a solid place.

But it's not just that wealthy people push hard to get to where they are. It also takes an effort to retain and build on wealth.

With that in mind, Ameriprise surveyed a group of people with $1 million or more in investable assets to understand how they built their savings and what their goals are. And it found that these are millionaires' top three priorities.

1. Protecting accumulated wealth

Protecting the wealth they've built is a big priority for those with money. And even if you don't have $1 million or more to your name, it's important to protect the money you've worked hard to save.

One way to do that is to make sure you're banking at an FDIC-insured institution. This way, if your bank goes under, your deposits are protected for up to $250,000. And if you have a joint account holder, you get up to $500,000 worth of protection. You can use the FDIC's BankFind tool to see if your bank is FDIC-insured.

2. Saving for retirement

Folks with $1 million or more are likely well aware that it takes a lot of money to pull off a comfortable retirement. They're continuing to save for that milestone, and you may want to do the same.

If you're going to save for retirement, then it's best to take advantage of savings plans that offer built-in tax breaks. That could mean signing up to participate in your employer's 401(k) plan, or opening an IRA independently.

Traditional IRAs and 401(k)s offer the benefit of tax-free contributions. So if you put $5,000 into one of these accounts, the IRS won't tax you on $5,000 of earnings. Getting a tax break like that could make it easier for you to find the money to save for your future.

3. Managing market volatility

For many people, investing in the stock market is an effective means of growing wealth. But the stock market is known to be volatile, which means there's the potential to lose money. The good news, though, is that you can take steps to mitigate that risk.

First, aim to invest over a long period. Simply giving yourself extra years to ride out stock market downturns is one way to protect your portfolio.

Another key step is to make sure your portfolio is diversified. That could mean owning stocks across a range of different market segments. For example, rather than simply building a portfolio of only tech stocks, buy some tech stocks, but also, auto stocks, bank stocks, retail stocks, and healthcare stocks.

Another approach you could take is to invest in the broad market by purchasing shares of an S&P 500 exchange-traded fund (ETF). This effectively means you're investing in 500 different companies without having to go out and buy shares of each one individually.

Some of your personal finance priorities may be different from the ones above. And that's perfectly OK. But it does pay to do what you can to protect your savings, grow wealth for your future, and manage stock market volatility as best as you can.