Few investors become millionaires before they turn 45. What does it take to become one of the nation’s young millionaires?
Investors who become millionaires before they turn 45 certainly stand out in a field largely populated by retired investors in their late 50s or older. What does it take to become one of the nation’s young millionaires?
Young millionaires, those ages 44 and under, tend to have a stronger entrepreneurial streak, according to ongoing research from Millionaire Corner, which defines a millionaire as having a net worth of $1 million to $5 million, not including primary residence. Young millionaires are more likely to credit their financial success to “running their own business” than the average millionaires. More than one-third (35 percent) of young millionaires cite their business ventures as a wealth-building actor, compared to 20 percent of millionaires of all ages.
Young millionaires are also characterized by heart and courage. They express a high level of optimism, even for a millionaire, and report a greater-than-average willingness to take risks to earn a high return on investments.
Seventy percent of young millionaires say they expect their personal financial situation will be better a year from now, compared to 52 percent of millionaires of all ages, and 41 percent say they would take “significant investment risk” in the quest for high returns. (Only one-third of millionaires of all ages feels this way.)
Young millionaires are more likely to say they enjoy investing and tend to be independent investors. Half of them say they factor in social responsibility when making investment decisions, a concern cited by 37 percent of millionaires of all ages.
Young millionaires aren’t a totally carefree bunch. They express significant personal financial concerns, but tend to worry about different things than older millionaires. What do young millionaires worry about most? College costs. More than 60 percent say they are worried about financing the education of their children, compared to 28 percent of Millionaires of all ages. Young millionaires also express relatively high levels of concern about job security and household debt levels.