Follow the money to learn how to acquire an investor education.
Investor education increases the chances of reaching personal financial goals. No wonder the most successful money makers put a high premium on financial literacy. Looking to boost your own investor education levels? Take some tips from America’s apex investors:
Investor Education Rule No. 1 - Acquire a Solid Knowledge Base: More than 60 percent of investors with at least $125 million describe themselves as “very knowledgeable” about financial products and investments, and roughly one-third say they are “fairly knowledgeable,” according to Millionaire Corner research. Financial literacy helps investors set goals, evaluate their current financial situation and chart a suitable course toward retirement security and other desirable outcomes. Where do $125 Million Plus investors obtain their knowledge? They follow the daily financial press (55 percent), consult with financial advisors (50 percent) and follow other financial websites (50 percent), among other sources.
Investor Education Rule No. 2 – Apply Your Knowledge: Two-thirds of $125 Million Plus investors say they like to be actively involved in the day-to-day management of their investments, and 70 percent enjoy investing and “do not want to give it up.” How much time do $125 Million Plus investors spend managing their finances? A lot. Nearly one-fourth spends more than 30 hours a week reviewing their investments, and another 24 percent spends 20 to 30 hours a week managing their finances. Wealthy investors commonly compare the performance of investments they manage themselves against the performance of investments they entrust to an advisor.
Investor Education Rule No. 3 – Use All Available Tools: America’s wealthiest investors use online resources to extend and apply their hard-earned knowledge. Nearly all of $125 Million Plus investors (98 percent) go online to access personal financial account information, while 96 percent use the Internet to research investments. Close to 90 percent pay bills online and 87 percent conduct trades over their computers, tablets and smart phones.
“The wealthy tend to enjoy a high level of financial literacy,” said Catherine McBreen, president of Millionaire Corner, “but an investor education is within the reach of any individual willing to work hard and make use of available resources.”