The Millionaire mind skews toward the positive, creating an optimistic attitude that appears to be a key factor in building wealth.
Money may not buy happiness, but the latest research into the millionaire mind confirms a long-established link between wealth and optimism.
“Affluent investors consistently express a higher degree of optimism about current conditions and tend to have a more positive outlook on the future,” said Catherine McBreen, president of Millionaire Corner.
One-third of Millionaires surveyed by Millionaire Corner this month say they will be better off financially a year from now, and 28 percent say their finances are in better shape now than they were a year ago. While 37 percent of Millionaires believe the nation is headed for a double-dip recession, the millionaire mind shows itself to be significantly more positive than the nation as a whole and more upbeat than that of less wealthy investors.
Nearly 42 percent of individuals with a net worth of less than $100,000 say the American economy is heading back into recession. Fewer than 28 percent of the less affluent investors believe their personal finances will improve in the next 12 months, and only 23 percent say they are better of now than they were a year ago.
More than two years into the recovery, Millionaires also appear to be more willing to take on investment risk, a sign that their confidence is growing. In 2009, two-thirds of Millionaires said it was more important to protect, than grow their assets. That share fell to 47 percent in a March survey by Millionaire Corner.
In fact, more than 28 percent of Millionaires saw the steep selloff in August as an opportunity to purchase additional stock. Fewer than 19 percent of investors with less than $100,000 say used August downturn as an investment opportunity.
“Optimism prevails in the millionaire mind and appears to be a key factor leading to wealth creation,” McBreen said. “A positive outlook gives investors hope that their disciplined, long-term investment plans will pay off, and also gives them the confidence to take some of the risks necessary for high returns.”
Millionaires are the least likely to consider retiring abroad, a move than can help retirees reduce their living expense and afford more services in old age. About 11 percent of millionaires said they were considering retiring to another country, compared to nearly 17 percent of investors with less than $100,000.