Modern Investment: How Millionaires Invest Their Money

According to surveys, millionaires focus and invest primarily in growing their assets than to protect their assets. Unlike what most financial advisors think, millionaires are relatively more like non-millionaires. When it comes to the level of confidence for retirement, a significant percentage shows that millionaires around the world are not confident to retire at any age they want. Today, millionaires put their money in a more dynamic and flexible investment options, and their major decisions when it comes to investment may include developing a solid financial plan, taking cash off the sidelines then making an investment, and taking a more international approach to investing. Millionaires invest largely in portfolio investments, equities, bonds, and real estate, and a small percentage of non-traditional investments.

Millenial millionaires or young millionaires have a common trend in their investing behavior today. Young millionaires or millennials are not just satisfied growing their money, they want “impact investing” or making investments in order to achieve environmental and social goals. Majority of millennial investors think that social impact is the greatest factor in their investing decisions. It is true that impact investing is incredibly hitting the mainstream, hitting the tipping point. New investors believe that choosing the right companies they will lay their money on making an impact in the society in a more positive way, thus earning a greater return on investments. Today’s investing process is now completely integrated with sustainability values. Non-financial factors are greatly considered unlike in the past, playing a significant role in the financial performance of a company, as 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. Many investors believe in the return of their domestic and foreign investments if they consider the social impact 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. It is just so nice to know that even an average earner or a starting entrepreneur can follow the footsteps of greatest investors who consider their society and their environment.

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