Nearly one-fourth of Millionaires state they are very knowledgeable about financial products and investments, compared with only 15 percent of non-Millionaire households.
Ask a Millionaire how they achieved their financial success and, beyond hard work, they are almost equally a likely to cite smart investing (83 percent) as they are education (86 percent).
Millionaires have strong confidence in their financial knowledge and financial acumen, according to Spectrem Group wealth level research of households with a net worth of between $1 million and $5 million. While the majority (60 percent) consider themselves fairly knowledgeable with still a great deal to learn, nearly one-fourth state they are very knowledgeable about financial products and investments. In comparison, only 15 percent of non-Millionaire households surveyed by Spectrem Group consider themselves very knowledgeable.
And how are they putting that knowledge to use? Spectrem Group asked Millionaire investors about the best financial decisions they’ve made. The highest percentage (38 percent) said that the smartest thing they’ve done financially is make consistent investments in a retirement plan.
More than eight-in-ten surveyed Millionaires surveyed fully expect to have sufficient income to live comfortably during retirement. Tellingly, they are less likely than their less-wealthy counterparts to identify outliving their savings as their biggest financial fear.
Millionaires were next most likely to consider living a frugal lifestyle to be their best financial decision. Frugality ranks just behind smart investing (78 percent) as the factor Millionaires credit their wealth creation, according to Spectrem Group research.
The third most-cited financial decision Milllionaires consider to be the best they’ve made is purchasing a home. In a separate Millionaire Corner survey, 51 percent of Millionaire respondents said that owning a their own home was one achieving the American Dream. Owning a home one can afford is, despite the prolonged downturn in the real estate market, offers several advantages, from tax breaks to an accumulation in equity.
The fourth most-cited financial decision considered by Millionaires to be the most beneficial to them is making good stock picks, a testament again to their confidence in their financial knowledge, followed by purchasing real estate as an investment.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.