These days, many people aspire to become millionaires, but few roll up their sleeves to make this dream come true. In a world where more and more millionaires join the billionaire's club, the one-million-dollar milestone is a real possibility for many ordinary people. Achieving this goal requires good management, a judicious way of thinking, the ability to take occasional and calculated risks, and learning from the best -- in this case, millionaires.
Plenty of research has been conducted to analyze the spending and investing patterns of the rich, so it's now easier than ever to emulate their strategies for your own benefit. Here are some takeaways from Capgemini's 2016 World Wealth Report and Legg Mason Global Asset Management's 2016 Global Investment Survey that offer us a glimpse into the investing habits of the world's rich:
- 78% of millennial investors under 40 were more conservative/risk averse than the previous year, with cash and alternative assets making up a larger portion of their portfolios. Young investors prefer fixed income investments, real estate and non-traditional asset classes.
- 68% of investors aged 40+ were more conservative than a year earlier. Older investors favor equities and cash.
- 81% of older investors have a positive outlook of the financial markets. Women are most optimistic.
- Investors young and old alike expect their portfolios to grow.
- Investors increasingly embrace tech in money management: 67% of millionaires surveyed are open to using automated advisory services, up from 49% a year earlier, and 48% of millionaires take advice from peer-to-peer platforms at least once a month.
The bottom line is that investing like a millionaire is not that much about the asset classes but the tools and services available now that allow even people that dispose of few investable assets to enter the game and give them access to investing advice and market insights.