The Millionaire’s Mindset: How They Invest Their Gold Cash
According to studies, millionaires concentrate more on growing their assets than protecting them, and this is the primary reason why they are investing. Unlike what most financial advisors think, 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. In summary millionaires invest their money on portfolio investments, equities, bonds, real estate and non-traditional investments.
Millenial millionaires or young millionaires have a common trend in their investing behavior 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”. Today, modern millennial investors believe that social impact is their top determining factor in their major investment decisions. It is true that impact investing is incredibly hitting the mainstream, hitting the 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 truth is modern investors are not just concerned about making and growing their money because they are now more 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 reality is presumably the result of long years when the ordinary people presented protests and campaigns about 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 more in life.
It is observable that aside from bonds, equities, real estate and other forms of non-traditional investments, millennial millionaires 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.