Modern Investment: How Millionaires Invest Their Money
According to studies, millionaires concentrate more on growing their assets than protecting them, and this is the primary reason why they are investing. Most people, especially financial advisors think that millionaires less worry about things, but actually millionaires are relatively more like non-millionaires. When millionaires were asked about their level of confidence about retirement at any age they want, surveys show a significant percentage that millionaires around the world are not confident to do it just yet. The major decisions millionaires invest their money include development of a financial plan, investing in products apart from bonds and stocks, taking cash off the sidelines and make an investment, and taking a more international approach to investing. When it comes to investment, millionaires put the majority of their money in portfolio investments, equities, bonds, and real estate, and a small percentage of non-traditional investments.
There is a trend among young millionaires or millennial millionaires today. Millennials do not want just want to grow their money, they also want to achieve environmental and social goals through their investments, which is referred to as “impact investing”. Majority of millennial investors think that social impact is the greatest factor in their investing decisions. Impact investing is really hitting the mainstream, and it is hitting a tipping point. New investors choose companies that make an impact in the society in a more positive way. Today’s investing process is now completely integrated with sustainability values. Unlike in the past, non-financial factors now play a crucial role in the financial performance of a company, because as the behavior trend show, a large number of investors and consumers support businesses that prioritize and consider the social impact of what they do as well as the profitability.
The the truth of the matter is more and more investors are becoming open, flexible, smarter and sensitive to their society and their environment. Millionaires put their money in domestic or foreign investments considering social impacts and environmental outcomes. This is probably the result of ordinary people’s campaigns protecting the environment, the less fortunate, women and their children, fight against unjust labor, poverty and other relevant social, environmental as well as economic factors, with the influence of social media and other digital technologies providing enlightenment to those who have much.
Apart from real estate, bond, equities and non-traditional investments, millionaires of today are actively participating hand-in-hand with charitable institutions and businesses engaged in social cause. Whether you are a millionaire, an average earner or a starting entrepreneur, it is always good to consider social impacts as well as environmental impacts of our investments.