Musings & Amusings

What Do Millionaires Know That We Don’t?

5 Surprising Facts About Millionaires

Most Millionaires Don't Feel Rich

When Spectrem researchers asked people with a net worth between $1 million and $5 million to put themselves on a sliding scale ranging from 0 (poor) to 100 (wealthy), the average response was 63.91 — or just above the middle. In reality, those with at least $1 million are wealthier than about 92 percent of American households.

Hard Work and Education Are Keys to Success

When asked how their wealth was created, a whopping 94 percent of millionaires surveyed by Spectrem credited hard work. The number two factor? Education, cited by 87 percent. That ranked it ahead of smart investing (83 percent), frugality (78 percent) and risk-taking (60 percent).

They Get Help From Experts

Millionaires typically don't see themselves as experts in investing. Only one in five considered themselves very knowledgeable. Another one in five admitted they weren't knowledgeable, while the majority — 60 percent — said they were fairly knowledgeable but still had a lot to learn.

Only one in four millionaires Spectrem surveyed said they were self-directed investors with no assistance from advisors. The other three-quarters said they were either "advisor assisted" (26 percent), "advisor dependent" (14 percent) or "event driven" (32 percent), meaning they hired financial advisors to help them deal with specific events in their lives such as impending retirement or divorce.

They’re Hands-on With Their Money

Even though most hire help, the majority remain hands-on with their money, Spectrem found. And the more money they have, the more involved they want to be.

The Wealthiest Households Enjoy Saving More Than Spending

Seven out of 10 of the wealthiest households — those with a net worth above $25 million — said that saving and investing their money gave them greater satisfaction than spending it.

 Source: Dailyworth