1. Path to Wealth
Eighty-six percent of today’s millionaires did not consider themselves wealthy growing up (“self-made”), while only 14 percent said they grew up wealthy (“born-wealthy”). Key findings include:
• Of those who are self-made, their top sources of assets included investments/capital appreciation, compensation and employee stock options/profit sharing. Those who were born wealthy were more likely than the self-made group to cite inheritance, entrepreneurship and real estate investment appreciation as an asset source.
• Self-made millionaires typically felt just as financially secure as those who were born-wealthy.
• Born-wealthy millionaires were greater financial advice users with distinct advice needs, such as personal trust services and foundation/endowment management.
• When it comes to investment strategies, those who are self-made were more likely to add equity investments, while those who were born wealthy typically had more real estate investments.
2. Financial Outlook
Thirty-five percent of millionaires had a negative outlook on the current financial environment, while 31 percent had a positive current outlook. The remaining 34 percent had a “neutral outlook.” Key findings include:
• Despite a lack of confidence in the current financial environment, those with a negative outlook still had a favorable outlook on future recovery (+11).
• Those with a negative outlook also were more actively receiving financial advice on topics like general financial planning and retirement planning.
• Finally, the investment strategies of those with a positive outlook show that they have been more active in the stock market, while those with a negative outlook typically added more cash-like products.
3. Investment Goals
The study found that when it comes to concerns about their financial future, 30 percent of today’s millionaires were concerned with preserving their wealth (“preservers”), while 20 percent were focused on growing their wealth (“generators”). Other financial concerns, such as managing income flows in retirement, supporting the lifestyle they want in retirement and managing investments, made up the remaining 50 percent.
