Investing in cash products and real estate, and doing so conservatively, worked for the wealthiest Baby Boomers.
There is nothing typical about the “typical’ Baby Boomer investor. There are 74.9 million Baby Boomers ages 51 to 69. A new Spectrem Group demographic study, “Baby Boomer Investment Personas”, finds five primary character traits that run the gamut from independent to advisor dependent. In part three of our series, we consider Moneybags.
There are Baby Boomers who used a conservative approach to investments to create great personal wealth. In the Spectrem study “Baby Boomer Investment Personas”, these people are called Moneybags.
The Spectrem report focused on Baby Boomers with a net worth of at least $1 million.
Moneybags has an average net worth of $5.4 million, which was accrued in great part through conservative investments, more conservative than the other Baby Boomer Personas. One reason for the conservative approach is that the Moneybags persona is populated by more females than males (53 percent to 47 percent).
There are Moneybags that have a riskier approach to investing, but 89 percent of Moneybags call themselves either conservative or moderate investors. As such, they are far more likely to invest in products that provide a guaranteed rate of return (51 percent) and prefer to invest in products from the United States (76 percent). They are more likely to invest in cash vehicles, real estate and annuities.
87 percent have an advisor, but 83 percent believe their advisor is not looking out for their best interests.
56 percent are concerned about maintaining their financial position. Sixty-three percent express concern over maintaining their current financial situation (to 53 percent of the average investor). The future is also on the mind of Moneybags, who worry about living in a care facility someday (57 percent to 53 percent on average) and worry about the financial situation of their grandchildren (49 percent to 42 percent).
It is also perhaps telling that the more conservative investor like Moneybags would have less interest in using their wealth to help others (2o percent to 26 percent on average).
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.