Millionaire Business Owners have an independent streak that is characteristic of their entrepreneurial spirit. Ask a Business Owner to what he or she attributes their wealth, and across occupation levels, according to a recent study by the Spectrem Group, they are the most likely to say hard work (100 percent), smart investing (85 percent), and running their own business (98 percent).
They are also the most likely to indentify themselves as Self-Directed investors. Thirty-seven percent of surveyed Millionaire Business Owners identified themselves as someone who makes all of their investment decisions without consulting a professional advisor. Conversely, they are the least likely to regularly consult with an advisor before making a final decision about their investments.
For Millionaire Business Owners who do use the services of an advisor, either on a regular basis or only for specialized needs such as retirement planning, the selection criteria becomes more professional than personal at this wealth level. Whereas Business Owners rely most on a referral from family or friends to find an advisor, they are most likely to do their own research into a product and an advisor who specializes in that product.
Not surprisingly, then, as they are the most likely to be involved in the selection of a retirement plan provider due to their role in the economy, they are the least likely among other professionals, including senior corporate executives and managers to want more advice and assistance in choosing among the investment choices offered in their retirement plan.
The economic downturn has apparently hardened their attitudes. Asked about the lessons learned from the recession, almost a third—the most of any occupation level—said they will rely less on financial experts.