Times are changing, and so is the way we view our wealth. A survey by Fidelity Investments1 reported that many millionaires don’t consider themselves rich with $3 or $4 million in investible assets, but rather a number around $7.5 million. You can blame inflation or the advances in modern health technologies that lead to longer lives and an increase in retirement years, but most millionaires are upping the ante when it comes to their financial assets and future.
Furthermore, some believe that wealth is relative, and the more you have the more you realize how much more you need. Regardless, that much like our current economy, the numbers are rising, and Fidelity’s report yielded some interesting results.
The survey included over 1,000 households with an average of $3.5 million in investible assets. Approximately 42% said they don’t feel wealthy, and that they’d need at least $7.5 million in order to feel rich. The interesting point is that the remaining 58% that said they do feel wealthy were young on average and have quite a few more years in the workforce. The numbers make sense, though. An older millionaire closer to their retirement is looking at the following equation: the potential loss of a paycheck, possibly 30+ years in retirement, and inflation on the horizon. Whereas the younger millionaire can look at their future in the workforce as an opportunity to grow their assets and fight inflation at the helm.
With about 5.5 million U.S. households leveraging at least $1 million in assets, millionaires control 56% of the country’s wealth. According to the Federal Reserve, household wealth was at $56.8 trillion at the end of 2010. These numbers represent the most positive outlook that millionaire’s have had in at least four years. With our economy putting up some more respectable numbers, and the recession slowly easing, investors believe we’re turning the corner on more consistent basis.
How will this affect their investments and the stock market? About 56% of registered investment advisers that manage or advise individual investors' money are optimistic on the stock market's forecast over the next six months. 23 percent of the advisors surveyed said they're providing reassurance to their clients about reaching their investment goals, down from 49 percent in January 2009. However, 83 percent of millionaires surveyed by Fidelity said the financial crisis didn't shake their confidence in investing, and 43 percent said they plan to invest more money in stocks over the next year. Most advisors said the current goal isn’t growth, but rather the preservation of capital.
What is your outlook on personal wealth and assets? Do you feel confident in your retirement fund? Millionaires take up only about 5% of the U.S.’s population, and it’s clear that everyone has their own financial plan and future. However, this survey paints a pretty good picture on the perspective of wealth accumulation and the uncertainties that accompany planning for your retirement. Do you feel rich?
1Fidelity®Millionaire Outlook Survey, 3/14/2011 (http://www.fidelity.com/inside-fidelity/individual-investing/millionaire-outlook-2011 )
Furthermore, some believe that wealth is relative, and the more you have the more you realize how much more you need. Regardless, that much like our current economy, the numbers are rising, and Fidelity’s report yielded some interesting results.
The survey included over 1,000 households with an average of $3.5 million in investible assets. Approximately 42% said they don’t feel wealthy, and that they’d need at least $7.5 million in order to feel rich. The interesting point is that the remaining 58% that said they do feel wealthy were young on average and have quite a few more years in the workforce. The numbers make sense, though. An older millionaire closer to their retirement is looking at the following equation: the potential loss of a paycheck, possibly 30+ years in retirement, and inflation on the horizon. Whereas the younger millionaire can look at their future in the workforce as an opportunity to grow their assets and fight inflation at the helm.
With about 5.5 million U.S. households leveraging at least $1 million in assets, millionaires control 56% of the country’s wealth. According to the Federal Reserve, household wealth was at $56.8 trillion at the end of 2010. These numbers represent the most positive outlook that millionaire’s have had in at least four years. With our economy putting up some more respectable numbers, and the recession slowly easing, investors believe we’re turning the corner on more consistent basis.
How will this affect their investments and the stock market? About 56% of registered investment advisers that manage or advise individual investors' money are optimistic on the stock market's forecast over the next six months. 23 percent of the advisors surveyed said they're providing reassurance to their clients about reaching their investment goals, down from 49 percent in January 2009. However, 83 percent of millionaires surveyed by Fidelity said the financial crisis didn't shake their confidence in investing, and 43 percent said they plan to invest more money in stocks over the next year. Most advisors said the current goal isn’t growth, but rather the preservation of capital.
What is your outlook on personal wealth and assets? Do you feel confident in your retirement fund? Millionaires take up only about 5% of the U.S.’s population, and it’s clear that everyone has their own financial plan and future. However, this survey paints a pretty good picture on the perspective of wealth accumulation and the uncertainties that accompany planning for your retirement. Do you feel rich?
1Fidelity®Millionaire Outlook Survey, 3/14/2011 (http://www.fidelity.com/inside-fidelity/individual-investing/millionaire-outlook-2011 )
GEAR #2012-4333
