Gen X and Y millionaires are more optimistic about the economy than they have been in several years and are actively investing to try to improve their status, according to the latest Fidelity Millionaire Outlook Study.
Using a scale where +100 represents the most favourable outlook, zero is neutral and -100 is the most negative outlook, this year’s study found that the current financial outlook of today’s Gen X/Y millionaire is +51iv, which is 58 points above his/her older counterpart (Boomers+v) and the highest level since the survey’s inception in 2006.
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According to the study report, not only are they working with advisors, NextGen millionaires are also turning to advisors for investing recommendations above all other sources. And while 61% of Gen X/Y wealthy investors make their own decisions, they look to their advisors for a second opinion — validation, rather than delegation.
These newer millionaires are also active investors, making an average of 30 trades per month, the report revealed. Confidence also rides high with these clients as more than 71% of Gen X/Y millionaires said they feel knowledgeable about investing and 72% find investing enjoyable
Bob Oros, executive vice president of Fidelity Institutional Wealth Services, said: "Financial advisors should be prepared to deal with Gen X/Y clients who are knowledgeable and who like to be involved in their investments. These new millionaires are collaborators, looking for a validator to partner with on their investments."
Gen X and Y millionaires own more vacation homes, boats and country club memberships and are more likely to take vacation in foreign countries and fly first class than their older counterparts. However, they are also more likely to volunteer or serve on the board of a charity (82% versus 49% for boomers and older). The younger generations average $54,000 in charitable donations each year, the study found.
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By GlobalDataTo qualify to be included in the survey, a person had to have investable assets of at least US$1 million, excluding workplace retirement accounts and any real estate holdings.
