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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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What are the Wealth Creation Strategies of Millionaires?

How do the rich get rich? It may sound cliché, but most millionaires make their money the old-fashioned way. They earn it. Learn more about their wealth creation strategies.

| BY Adriana Reyneri

A certain mystique surrounds millionaire investors, but the wealth creation strategies of America’s most affluent households are surprisingly down to earth, according to recent Millionaire Corner research.  

What’s number one among wealth creation strategies? The vast majority of millionaires make their money the old-fashioned way - they earn it, according to our recently published $25 Million Plus Investor 2012. According to our research, these multi -millionaires attribute their wealth primarily to hard work.

Education ranks second among wealth creation strategies of $25 Million Plus investors. All of them have earned a high school diploma and 93 percent have graduated from college. Nearly 30 percent have a master’s of business administration and 16 percent, a doctoral degree, while 8 percent are lawyers and 6 percent, doctors.

The hard work and education support other top-five wealth creation strategies of $25 Million Plus investors, most notably smart investing.  More than 30 percent of these multi-millionaires spend one to five hours a week working on their investments, but most spend more. Fifteen percent spend 26 to more than 35 hours a week managing their wealth.  As a group, $25 Million Plus investors express fairly sensible attitudes toward risk. More than half (55 percent) say it is more important to protect than grow their wealth in the current economic environment.

The average investor portfolio of $25 Million Plus investors contains a wide variety of investment products, indicating that diversification plays an important supporting role in wealth creation strategies. Most $25 Million Plus investors also take steps to protect their wealth from taxes, using such tried and true strategies as tax-free bonds, charitable contributions and tax-advantaged life insurance policies. Multi-millionaires also work with tax planners and estate planners to minimize tax consequences.

Affluent investors count taking risk among their top-five wealth creation strategies. Notably, our research shows that entrepreneurs make up the largest share of $25 Million Plus investors, accounting for 27 percent of this successful group.

Perhaps most surprisingly, $25 Million Plus investors list frugality among key wealth creation strategies, supporting one of the oldest adages of personal finance, “a penny saved is a penny earned.”