A recent survey conducted by Ameriprise Financial has shed light on American millionaires’ financial priorities and mindset. Despite popular belief, most millionaires do not consider themselves wealthy, according to the survey. In fact, 60% of the respondents identified as upper middle class, while 31% considered themselves part of the middle class. The survey included 580 Americans between the ages of 27 and 77 with investable assets of $1 million or more.
The survey revealed that millionaires have different financial priorities compared to less affluent investors. Protecting accumulated wealth, saving for retirement, and managing market volatility were the top priorities for millionaires. On the other hand, individuals with less than $1 million in assets prioritized saving for retirement, managing day-to-day living expenses, increasing income, and paying down debt.
Kimberly Maez, a private wealth advisor at Ameriprise, explained that affluent investors tend to be more risk-averse, focusing on protecting their wealth rather than taking high risks. Furthermore, passing on money values to their families is an important concern for them, as they believe a healthy relationship with money can significantly improve their quality of life.
The survey also reflected the characteristic patience of millionaires. Millionaires take a long-term approach and understand that success in various aspects of life, including finances, does not follow a linear path. They focus on what they can control while also preparing for unforeseen circumstances.
The definition of wealth has evolved in recent years, with the perception of being wealthy influenced by factors such as lifestyle, inflation, and regional cost disparities. Today, wealth is not solely measured by net worth but also encompasses financial literacy, multiple income streams, and a comfortable, sustainable lifestyle.
Millionaires diversify their investment portfolios across asset classes to preserve and grow their wealth. While stocks, bonds, and alternative investments are commonly held, many also choose to invest in business ventures and physical real estate.
Developing a millionaire mindset requires a longer-term approach that considers unforeseen expenses and sets financial goals. Experts recommend developing a habit of regular saving and investing, budgeting for large expenses, and having written goals.
The survey provides valuable insights into American millionaires’ financial priorities and mindsets. Despite their substantial wealth, most millionaires do not consider themselves wealthy but instead focus on protecting their assets, saving for retirement, and managing market volatility. Their patient and long-term approach to finances and focus on what they can control are key factors in their financial success.