Young Millionaires are more diversified in their approach to investing than their older Millionaire counterparts, Spectrem research shows.
In the study Asset Allocation, Product Ownership and Perception of Providers, young Millionaires indicate far more interest in almost all forms of investments.
For instance, while only 4 percent of Millionaires are invested in hedge funds, 15 percent of Millionaires under the age of 45 have hedge fund accounts. The numbers are identical for venture capital (4 percent total to 15 percent for those under 45) and similar for private equity (5 percent total to 18 percent among young Millionaires.
There is more overall interest in real estate investment trusts, with 24 percent of all Millionaires invested in REITs, but that includes 29 percent of young Millionaires. The contrasts in futures is the starkest, with only 3 percent of Millionaires involved by 17 percent of young Millionaires invested.
The greater interest in investing among young Millionaires extends to other products as well. Among all Millionaires, only 6 percent were invested in commodities, but among the young Millionaires, 21 percent had funds in commodities trading. Again, similar numbers were reported about options, with 6 percent of all Millionaires involved and 23 percent of young Millionaires invested.
Eighteen percent of all Millionaires had money in precious metals, but 29 percent of young Millionaires were invested in the gold and silver markets.
Young millionaires also enjoy the investing game more than their older counterparts. Fifty-nine percent of Millennial millionaires say they enjoy investing and want to continue to do it, while only 49 percent of Baby Boomers feel the same way. Also, 58 percent of young millionaires enjoy being actively involved in the day-to-day machinations that come along with investing, while only 51 percent of Baby Boomers enjoy daily investing.
For more information on the Asset Allocation, Product Ownership and Perception of Providers study, click here