Checking and savings accounts and equities are the likeliest vehicles in which Millionaires plan to invest in 2014, according to a wealth level study conducted by Spectrem Group.
Nearly one-third of investors (32%) are primarily retired or plan to retire in the next five years, and said they presently do not see themselves in an investing mode. The average age of this group is almost 64 years-old and they are the most conservative investors.
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Less than 15% indicated they are likely to invest in equities in the next 12 months. Among the three groups examined in the study, these elder investors, living off their retirement savings, are the least confident in their investment knowledge.
The second group is the ‘power investors’ (23%), who plan to be highly engaged with the market in 2014. They are younger than those in the other two groups and in the middle when it comes to risk tolerance (more aggressive than Millionaire retirees but less than the ‘investing in equities’ group.
They are also more likely than the more risk-averse retirees to invest in equities in the next 12 months, but 50% indicated they will invest in CD in 2014.
The study of investors with a net worth between US$1m and US$4.9m (not including primary residence) found three diverse groups of Millionaire investors. The largest percentage (45%) showed the strongest indication they would be investing in equities.
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By GlobalDataThis group, compared with their counterparts, is the most aggressive when it comes to investments with large portions of their current portfolios in stocks, bonds and mutual funds, as opposed to more liquid and conservative accounts.
They boast the most confidence in their knowledge about financial products and investing. This investor group has the highest percentage of entrepreneurs and business owners, our study found.
