Retirement Blog

Finance Blogs » Retirement » Rich and feeling better

Rich and feeling better

By Jennie L. Phipps · Bankrate.com
Monday, March 14, 2011
Posted: 2 pm ET

Fidelity Investments announced this morning that its millionaire clients -- those with $1 million, excluding real estate and retirement accounts -- are feeling more optimistic about the economy. Does that mean the rest of us should be encouraged?

Sanjiv Mirchandani, president of National Financial, a division of Fidelity, says yes: "In many ways, the average investor can learn from what millionaires are thinking or doing. For instance, millionaires tend not to panic and become gripped by inertia, while they are careful about spending and have well-developed financial plans."

Here are some of the ways rich people think about money and retirement planning these days:

  • These investors took the 2008 meltdown in stride. Only 17 percent said the 2008-2009 downturn shook their investing confidence.
  • They learned from the meltdown. Forty-three percent of millionaires say they are more knowledgeable investors now than they were before the market downturn.
  • Rich people are cautious. Despite having a healthy bottom line, 25 percent of these investors are concerned that they won't have enough money to support their lifestyle in retirement.
  • They think taxes are a threat and they're doing something about it. Some 64 percent are either "extremely or very concerned" about the impact of potential tax changes on their investments and are seeking ways to protect their wealth from Uncle Sam's reach.
  • Frugality counts. More than 80 percent say they are "careful" about their spending.
  • Wealth is relative. About 42 percent of millionaires say they would have to have at least $7 million to feel wealthy.
  • Optimism rules. More than 68 percent don't expect market volatility to become the new norm.
«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
1 Comment
NH
March 27, 2011 at 8:59 am

Well, I feel so silly now. To think I flew off the handle afraid I wouldn't be able to keep a roof over my head! I'm so red-faced now! Thanks, wealthy. You always know best.