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Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management


State: IL

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, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

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The Portfolios of Millionaire Millennials Versus the Rest

How do young millionaires invest compared to millennials who are not as rich?

| BY Catherine McBreen

Oh, to be young and rich….or a millionaire millennial.  But how do these young millionaires invest compared to millennials who are not as rich?  The answer may be related to the amount of professional help they receive, how they handle real estate, and cash.

In a report recently completed by Spectrem Group, the assets of Millionaire Millennials were compared to the assets of Millennials who had between $100,000 and $1,000,000 of net worth.  The net worth calculation did not include their primary residence but it was included when assessing the proportion it represented of the overall portfolio.  There were some key differences in the Total Assets held by the Millionaire Millennials compared to the others:

·         Investable assets represent 42 percent of the Total Assets of a Millionaire Millennial compared to just 33 percent of the Total Assets of non-Millionaire Millennials.

·         Millionaire Millennials held 10 percent of their Total Assets in Investment Real Estate compared to just 4 percent of other Millennials.  The Principal Residence makes up just 5 percent of the Total Assets of Millionaire Millennials but represents 16 percent of the assets of those with less total wealth.

·         One of the interesting differences is the amount of Privately Held Businesses as part of a Total Portfolio.  Twenty eight percent of Millionaire Millennials include Privately Held Businesses compared to 19 percent of non-Millionaires.

It is also important to review the Investable Assets of the Millionaire Millennials in comparison to the others. 

·         Twenty seven percent of the assets of Millennial Millionaires are in a Professionally Managed Account, compared to just 19 percent of the assets of non-Millionaires.

·         Just 12 percent of the assets of Millionaire Millennials are held in cash or deposit accounts compared to 19 percent of the assets of non-Millionaires.

What can be learned from these portfolios?

1.     Those who have more assets are more likely to be using professional asset managers. While it is unclear which came first…the financial advisor or the wealth…investors of all wealth levels should consider the value of professional advice.

2.     Less wealthy Millennials have a concentration of cash deposits.  This may be the time for Millennials to assess their interest in investing.  While it is always important to balance financial obligations against investment opportunities, this may be the time to take to a professional about investing.

3.     Investment real estate and entrepreneurial businesses are often the stepping stones to greater wealth, according to Spectrem research.  The Millionaire Millennials seem to have greater concentrations in both of these investments and therefore are off to a strong start in creating long term wealth.

Regardless of their age, investment wisdom may be available by looking at the portfolios of the Millionaire Millennials.

About the Author

Catherine McBreen

Catherine S. McBreen is President of Millionaire Corner.  McBreen plans and develops content for Millionaire Corner.  Catherine balances editorial content to meet the informational needs of both new and seasoned investors.  She designs special monthly surveys on topical issues affecting the economic environment.

McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law.  She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.

Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences.  She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth.  Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.

McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)

Catherine is the mother of four and is involved in many school and community events.