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Featured Advisor



Ed Meek
CEO/Investment Advisor

Edge Portfolio Management

City:Winfield

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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Main Street Investors Rely More on Frugality to Build Wealth

Frugality is becoming an increasingly important wealth-building tool for risk-averse Main Street investors. Learn more.

| BY Adriana Reyneri

Frugality is becoming an increasingly important wealth-building tool for risk-averse Main Street investors, who are more likely to attribute their wealth to their ability to save than to their educational status or investing smarts, according to a recently published report from Spectrem’s Millionaire Corner.

Main Street Americans – who have investable assets of $100,000 up to $1 million – rank frugality and hard work as their top-two wealth creation factors, followed by education and smart investing, according to our first-quarter look at the changing attitudes and behaviors of affluent investors.  Last year, Main Street investors were more likely to attribute their wealth to their education than frugality.

More affluent investors –those with investable assets of $1 million or more - also acknowledge the role frugality can play in building wealth, according to our research, but Millionaires are more likely to attribute their financial success to education and smart investing.  

To learn more about the wealth-creation factors of Millionaire investors, click here.

“Frugality appears to be the fallback position of Main Street investors, who remain reluctant to take on investment risk five years after the financial crisis,” said Catherine McBreen, president of Millionaire Corner. “The concern is that it’s extremely difficult – if not impossible – to save your way to a secure environment, unless some of your savings can grow through compounded investment gains – ideally inside a tax-deferred retirement plan.”

Learn more about how wealth shapes attitudes toward risk by clicking here.

Older baby boomers – a demographic entering retirement – appear the most reliant on frugality and the least open in taking risk, according to our research.  Boomers ages 55 to 64 express a relatively pessimistic view of their financial situation.  Far less than half says their finances are better now than they were a year ago (44 percent), and only 43 percent expects the situation to improve in the next year.

It appears unlikely these gloomy boomers will attempt to boost investment income by increasing their exposure to stocks or high-yielding fixed-income products at time soon, according to our research. Only 28 percent is willing to take on “significant investment risk” on a portion of investments to earn a higher rate of return.  The risk-averse group appears to believe frugality is the best policy.