Are you a ‘hidden millionaire?’

Fortune

by Joanna Rotenberg

February 20, 2026

AI-Generated Deep Dive Summary

Hidden millionaires—those who have accumulated significant wealth without realizing it—face unique challenges that can quietly undermine their financial stability. A recent Vanguard survey revealed that nearly 30% of millionaires feel their finances control their lives, often catching them off guard. This growing wealth brings complexities that require careful management to avoid pitfalls like high-interest debt, tax surprises, and inadequate estate planning. Recognizing the need for proactive financial strategies is crucial for those who have become "hidden millionaires." One common mistake is holding onto excess cash while still burdened by high-interest debt. While maintaining an emergency fund is important, prioritizing debt repayment over long-term savings can erode wealth over time. Experts recommend addressing any debt above 8% interest before focusing on retirement contributions. Additionally, failing to update tax strategies as wealth grows can lead to missed opportunities for optimization and unexpected tax bills. Hidden millionaires should regularly review their financial situation to align tax planning with their evolving assets, leveraging tools like Health Savings Accounts or Roth conversions. Another critical issue is the lack of a comprehensive estate plan. Nearly a quarter of millionaires have no formal documents in place, leaving their families vulnerable to financial and emotional strain. Creating or updating wills, beneficiary designations, and insurance coverage is essential to safeguarding wealth and ensuring long-term security. Proactive planning not only protects assets but also provides clarity for future generations. For business readers, understanding these challenges is vital as it highlights the importance of strategic financial management. Hidden millionaires must adopt a proactive approach to debt repayment, tax optimization, and estate planning to secure their financial futures and avoid potential pitfalls. By addressing these areas head-on, individuals can ensure their wealth works for them, rather than

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Originally published on Fortune on 2/20/2026