Where Millionaires Plan to Invest


A majority of Millionaires plan to invest short term over the next 12 months, as well as in equities that include individual stocks or stock mutual funds.

In Spectrem’s study Asset Allocation, Product Ownership and Perceptions of Providers, more than one-third of Millionaires (36 percent) say they plan to invest in money market funds, and over one-quarter of Millionaires (28 percent) said they would invest in international investments.

The study looked at investors from three wealth segments, ranging in net worth from $100,000 to $25 million, Not Including Primary Residence. The Millionaires had a net worth between $1 million and $5 million NIPR.

Twenty-five percent of Millionaires plan to invest in fixed income investments such as individual bonds or bond mutual funds, and 24 percent plan to invest in certificates of deposit. At least 10 percent of Millionaires plan to invest in investment real estate (14 percent), precious metals (13 percent) and hedge funds or private equity (12 percent).

There was little difference in investment strategies from 2012 to 2013. There was a decrease in fixed income investing (from 30 percent in 2012 to 25 percent in 2013) and slight decreases in equities and money market fund investment plans.

Investment plans for the next 12 months differ according to the age of the Millionaire. Money market funds, for instance, are attractive to investors 44 and under, with 49 percent saying they will invest, but the interest in money market funds drops to 31 percent among investors 65 and older.

Younger investors are more likely than the average Millionaire to invest in almost all products, doubling the overall interest in investment real estate (28 percent to 14), and investments such as hedge funds (26 percent to 12 percent overall).

Even among treasury bills, which are going to attract investment from just 8 percent of Millionaires overall, 16 percent of the youngest segment of Millionaires plans to invest.