The core values of education, savings and home ownership remain central to the belief system of MIllionaires.
A job, an education, a savings account, a home. These are the ingredients that determined the quality of the life America has promised for so long.
There remains a strong belief among wealthy investors that these ingredients still hold value as part of the core beliefs that propel American citizens.
In the Spectrem wealth segmentation series study Financial Behaviors and the Investor’s Mindset, wealthy investors rated the value of statements related to home ownership, saving money, jobs and education. The statements received strong support from all investors, although there are variations based on wealth segment.
Comparing responses between Ultra High Net Worth investors with a net worth between $5 million and $25 million and Millionaires with a net worth between $1 million and $5 million, the UHNW investors had a higher positive response to the question about home ownership and having a savings plan. The Millionaires had higher regard for the questions about young adults working through their higher education years.
The statement that received the highest positive response from Millionaires stated “Getting a college education is very important”. On a 0-to-100 scale, where “0’’ indicated not important and “100’’ indicated very important, that statement averaged to 85.65 among Millionaires. Ultra High Net Worth investors went even higher, to 88.24.
Whether a college education leads to Millionaire status is not a certainty, but 82 percent of Millionaires graduated from college, and 41 percent went on to get advanced degrees. Eighty-three percent of Millionaires credited education as a factor in their wealth creation.
Millennial Millionaires rated the college education statement much lower (77.31) and in fact rated all core belief statements much lower than average.
The statement receiving a similar level of support in the study stated “a dedicated and regular savings program is something I consider very important”. Among Millionaires, that statement rated 84.14 on average. Among UHNW investors, that statement rated 85.52. It was this statement in which Millennials were farthest off from the average, with a rating of only 71.59.
There was as slight dip among Millionaires in regards to the next statement. “Purchasing a home as your primary residence is a very prudent financial decision” was rated at 81.51 (slightly higher again among UHNW investors). Ninety-four percent of Millionaires own their own home, although that percentage is down below 80 percent among Millionaires under the age of 36.
The rating dropped below 80 on average in regards to the statement “Working is very important for older teams, including perhaps working during high school and college years”. That statement got a rating of 78.99, and was only 77.27 among UNHW investors.
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.