The “In-Between” Stage of Wealth

They say your first million is the hardest, which makes sense.

I was recently talking with a couple whose net worth had just crossed that threshold. It was a meaningful milestone, but it didn't change very much about their day to day lives. The mortgage was still there. They still went to their jobs the next day. And the long-term plan was largely the same.

For most people, a $1,000,000 net worth isn’t enough to retire completely. It’s a strong foundation, though, and usually reflects years of steady, responsible decisions. You may have owned your home for a while, paid down a meaningful portion of the mortgage, and contributed consistently to retirement accounts.

At the same time, you still have obligations. The portfolio may not yet generate enough income to replace your salary. You may not be old enough to claim Social Security. And you may not even want to stop working entirely.

I think of this as the “in-between” stage. Most of my clients come to me somewhere in this phase, usually 5-15 years from retirement.

Whether your portfolio is $1 million or $3 million, the underlying tension is often the same.

You have a lot to be proud of, but you’re not fully financially independent either. Looking ahead, you can see some path to financial independence that doesn’t require any changes, just continued savings, steady work, and time. 

If financial independence is five — or even fifteen — years away, what are you meant to do in the meantime? Simply maintain the current pace? Stay in the same role? Postpone meaningful changes until some future date? 

For many people, that can feel a little stagnant. The spreadsheet improves year after year, but your actual life might feel like it’s been put on hold. 

This is where financial planning becomes life planning.

Retirement doesn’t have to be an all-or-nothing decision. Work-life balance can shift. Hours can be reduced. A demanding role can become less so. Or, in some cases, one may feel called toward work that is more meaningful but less remunerative: teaching, nonprofit leadership, creative work, or something else entirely. 

Consider a hypothetical example.

Imagine someone with a $1,000,000 portfolio who transitions into a lower-paying but fulfilling profession. The salary covers living expenses, but doesn’t leave much margin for aggressive saving.

In an average year in the market, an all-stocks portfolio might grow 8–10%. On $1,000,000, that could represent $80,000–$100,000 in unrealized gains. That growth may exceed the individual’s annual salary.

Of course, markets are unpredictable, and returns vary. But the broader point remains: once you’ve accumulated meaningful capital, the compounding engine begins to work for you.

Rather than relying solely on salary to fund lifestyle upgrades and meaningful experiences, a small portion of portfolio growth can be used to supplement your life. 

The goal isn’t to live lavishly or compromise the good habits that got you here. Rather, it’s to recognize that financial strength creates options long before full retirement. 

The “in-between” stage isn’t meant to be a holding pattern, or a waiting room. It’s an opportunity to update your life and reorient towards what matters most. 

Work will remain a big part of your life. But with a good financial foundation you may have more flexibility when it comes to how you work: your hours, your role, the organization you work for, or even your career field.

For the couple I mentioned earlier, crossing the million-dollar mark didn’t immediately change their routine. But it did mark a shift away from “Can we retire yet?” toward “How do we want to spend the next decade?”

The goal isn’t escape from work, but to align your life with what matters most.