Facebook Twitter LinkedIn
Register for our daily updates!


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.

Click to see the full profile


Share |

Are Millionaires Feeling Risky?

The highest percentage of Millionaires identify their risk tolerance as moderate. 

| BY Donald Liebenson


Millionaire investors did not get that way without taking risk.

Six-in-ten Millionaires consider taking risk to be the primary factor in their wealth creation, following hard work, education, smart investing and frugality, according to a wealth level study conducted by Spectrem Group of households with a net worth between $1 million and $4.9 million.

Most, though, (60 percent) profess a moderate risk level tolerance and a willingness to place only a limited portion of their investments at risk. Forty-four percent prefer a guaranteed rate of return for the majority of investments, while only four-in-ten would be willing to take significant investment risk on a portion of their investments to earn a higher return.

Not surprisingly, the highest percentage of Millionaires willing to take that significant risk are Millennials ages 35 and under as well as those ages 36-44. Conversely, seniors ages 65 and up, more focused on protecting their principal in their retirement years, are the least likely to put a significant portion of their investments at risk (34 percent).

Millionaire business owners rank taking risk third behind hard work and smart investing as the primary factor in their financial success (79 percent vs. 59 percent of Millionaires overall). Still, they comprise the highest percentage of Millionaires who indicate a preference for a guaranteed rate of return for the majority of their investments (52 percent). They rank second behind senior corporate executives as those who would be willing to take significant investment risk on a portion of their investments to earn a higher rate of return (44 percent vs. 49 percent).

 



About the Author


Donald Liebenson

dliebenson@millionairecorner.com

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.