Millionaire’s Mindset: How Millionaires Invest Their Money
According to surveys, millionaires focus and invest primarily in growing their assets than to protect their assets. Unlike most people and most especially financial advisors think, millionaires are actually similar to non-millionaires. When millionaires were asked about their level of confidence about retirement at any age they want, surveys show a significant percentage that millionaires around the world are not confident to do it just yet. The major decisions millionaires invest their money include development of a financial plan, investing in products apart from bonds and stocks, taking cash off the sidelines and make an investment, and taking a more international approach to investing. When it comes to investment, millionaires put the majority of their money in portfolio investments, equities, bonds, and real estate, and a small percentage of non-traditional investments.
There is a trend among young millionaires or millennial millionaires today. Young millionaires or millennials are not just satisfied growing their money, they want “impact investing” or making investments in order to achieve environmental and social goals. Majority of millennial investors think that social impact is the greatest factor in their investing decisions. It is true that impact investing is incredibly hitting the mainstream, hitting the tipping point. New investors firmly believe that choosing the right companies that make an impact in the society in a more positive way will definitely park their cash up. Today’s investing process is now completely integrated with sustainability values. Non-financial factors are greatly considered unlike in the past, playing a significant role in the financial performance of a company, as large number of investors and consumers support businesses that prioritize and consider the social impact of what they do as well as the profitability.
The the truth of the matter is more and more investors are becoming open, flexible, smarter and sensitive to their society and their environment. Millionaires put their money in domestic or foreign investments considering social impacts and environmental outcomes. This is probably the result of ordinary people’s campaigns protecting the environment, the less fortunate, women and their children, fight against unjust labor, poverty and other relevant social, environmental as well as economic factors, with the influence of social media and other digital technologies providing enlightenment to those who have much.
Apart from real estate, bond, equities and non-traditional investments, millionaires of today are actively participating hand-in-hand with charitable institutions and businesses engaged in social cause. It is just so nice to know that even an average earner or a starting entrepreneur can follow the footsteps of greatest investors who consider their society and their environment.