How do millionaires make their money? Where do they invest? The facts are interesting.
In the United States, 11.3 million people are worth $1 million – $5 million. Another 1.3 million are worth $5 million – $10 million.
The majority of these people invest their assets in ordinary places: 44% in equities, with another 15% in fixed income (bonds). Only 16% of their net worth is principal home equity. Might we conclude that these people are committed savers?
Their occupations run the gamut. While only 2% are business owners, three primary occupational categories include professional services, medical/health and education. It appears that a college degree does make a difference. Some 83% have an undergraduate degree or higher.
What’s the takeaway? Accumulating wealth requires more than just saving money within a bank account, the money market or treasuries. It requires investing, taking some risk and doing it early in life. The average age for those worth $1 – $5 million? Fifty-two years old.