Young Millionaires are more diversified in their approach to investing than their older Millionaire counterparts, according tom a research by Spectrem.
In the study Asset Allocation, Product Ownership and Perception of Providers, young Millionaires indicate far more interest in almost all forms of investments.
For instance, while only 4% of Millionaires are invested in hedge funds, 15% of Millionaires under the age of 45 have hedge fund accounts. The numbers are identical for venture capital (4% total to 15% for those under 45) and similar for private equity (5% total to 18% among young Millionaires.
There is more overall interest in real estate investment trusts, with 24% of all Millionaires invested in REITs, but that includes 29% of young Millionaires. The contrasts in futures is the starkest, with only 3% of Millionaires involved by 17% of young Millionaires invested.
The greater interest in investing among young Millionaires extends to other products as well. Among all Millionaires, only 6% were invested in commodities, but among the young Millionaires, 21% had funds in commodities trading. Again, similar numbers were reported about options, with 6% of all Millionaires involved and 23% of young Millionaires invested.
Eighteen percent of all Millionaires had money in precious metals, but 29% of young Millionaires were invested in the gold and silver markets.
Young millionaires also enjoy the investing game more than their older counterparts. Fifty-nine percent of Millennial millionaires say they enjoy investing and want to continue to do it, while only 49% of Baby Boomers feel the same way. Also, 58% of young millionaires enjoy being actively involved in the day-to-day machinations that come along with investing, while only 51% of Baby Boomers enjoy daily investing.