What separates investors with $25 Million Plus to invest from those with a mere million to invest? The ability and willingness to take risks, according to a new Spectrem Group study on the attitudes and behaviors of America’s richest investors.
All millionaires – whether they have $1 million or more than $25 million to invest – credit their wealth primarily to hard work, followed by education and smart investing, according to ongoing studies of affluent investors conducted by Spectrem Group. Attitudes toward building wealth begin to diverge when it comes to attitudes toward frugality and risk.
The wealthiest investors – those with a net worth exceeding $25 million – count taking risk as one of the top four factors contributing to their financial success, and rank frugality as number five. “Being in the right place at the right time” places sixth, and is cited as a secret to success by 56 percent of the $25 Million Plus investor.
The vast majority of affluent investors own traditional stocks, bonds and cash accounts, according to Spectrem Group research, but the very richest set themselves apart by employing a wider range of wealth building strategies.
What are the wealth building strategies that distinguish the most affluent investors? A recent Spectrem Group study, $25 Million Plus Investor 2014, shows that the richest Americans own the same types of investments as less wealthier households, but tend to consolidate their wealth through real estate ownership. And, build their wealth by investing a portion in riskier alternative investment products.
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