6 Traits of an Emerging Millionaire: Are You One?
It’s not just Wall Street bankers, hedge fund traders and corporate raiders who will join the one percent. Nope. By now you may have heard that the new look of affluence in America is kind of… girly. The 7th Fidelity Millionaire Outlook found that today’s emerging high rollers are 66 percent female and 25 percent non-white.
The Fidelity Outlook identified 6 wealth-building traits that multi-millionaires have in common: Their starting point—a mere $250,000 in assets.
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1 Time Horizon: On average, emerging affluent investors are just 40 years of age with 27 years left before they reach the normal retirement age of 67. Only one percent of the emerging affluent is retired.
2. Career: Many of the emerging affluent have pursued similar professions to today’s millionaires, including information technology, finance and accounting. While they might be at lower-level positions than millionaires, they have a number of years in front of them to move up the ladder.
3. Income: At $125,000, the median annual household income for the emerging affluent is 2.5X the median U.S. household income8 and is nearing the income of today’s millionaires ($200,000 for those still employed).
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4. Self-Made Status: Approximately eight in 10 emerging affluent investors have earned or increased their assets on their own, a trait they share with millionaires and deca-millionaires.
5. Long-Term Focus: The emerging affluent share millionaires’ long-term focus, with three in four of both groups focused on the long-term growth of their assets, and three in 10 focused on supporting the lifestyle they want in retirement.
6. Investing Style: Similar to deca-millionaires, the emerging affluent display a willingness to invest aggressively to help maximize returns, as well as a willingness to set aside a significant portion of their portfolio for riskier investments that promise a bigger payoff. The emerging affluent and deca-millionaires were also most likely to describe themselves as “self-directed” investors, seeking hands-on involvement with their investments.
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