Young Millionaires are willing to admit that inheritance and family connections played a significant role in acquiring their wealth, according to a Spectrem study.
The report – 2013 Millionaire Investor: Changing Investor Attitudes and Behaviors, studied investors with a net worth between US$1 million and US$5 million not including primary residence.
It showed that more so than older Millionaires, young Millionaires credited inheritance and family connections as major factors in their wealth position.
44% of Millionaires under the age of 45 said ‘inheritance’ was a major wealth creation factor in their lives, a much higher ratio than the 31% of all Millionaires. 35% said ‘family connections’ was a factor, and the average was only 8%.
The young Millionaires also reported the highest percentage crediting ‘luck’, at 41%. 41% of Millionaires aged 55 to 64 also said ‘luck’ was a factor.
Young Millionaires were significantly less likely than older Millionaires to choose other wealth factors, including ‘hard work’ (85% to 94% overall) and ‘frugality’ (67% to 80% overall).
Young Millionaires were more pleased with the events of the last year in regards to personal finances. 72% of Millionaires under the age of 45 said ‘my financial situation is better today than it was one year ago. Only 60% of all Americans reported an improved financial outlook over the last year.
The optimism of youth was indicated in the report when Millionaires were asked about their national concerns. In every category, the young Millionaires expressed the least amount of concern: prolonged economic downturn (69% to 83% of all Millionaires), political environment (57% to 85%), national debt (58% to 80%) and terrorism (39% to 59%).
Asked to select their No. 1 national concern, 22% of young Millionaires chose an increase in interest rates as their biggest concern, far more than the average of 6% among all Millionaires.