We are all (99% of us) struggling right now. That’s a fact. No matter where your income falls, whether you have more than the average family or individual (and others definitely have less), not having as much as you are accustomed to managing on a weekly or monthly basis calls for changes to be made.
Millionaires are no different. In fact, despite having an average of $3.5 million in investable assets and $306,000 in annual household income, almost half (46%) of U.S. millionaires do not feel wealthy and are taking action to reassess and rebuild their wealth, according to Fidelity Investments 3rd Annual Millionaire Outlook. Remember, it’s not necessarily about how much you have but dealing with the pain of not having what you used to because of the economic malaise of the last 18-24 months.
Back to the Fidelity study. The study looks annually at the investing attitudes and behaviors of more than 1,000 millionaire households, and this year it reveals that these investors are using the market downturn as an opportunity to reconfigure their portfolios.
“Although most investors hesitate to take action and become gripped by inertia during a market downturn, our research shows that millionaires tend to use this time as an opportunity to reassess and make those tough decisions about their portfolios that can help get their finances back on track,” said Michael Durbin, president of Fidelity Institutional Wealth Services.
Most millionaires surveyed (77%) say that the current economic environment is the worst they have experienced, many are drawing on lessons learned from past financial crises. At an average age of 59, most millionaires (78%) have personal experience during the last four U.S. recessions, from the early 1970s oil crisis to the early 1980s, 1990s and 2000s downturns.
“Despite a generally negative view of the current economy, many millionaires are drawing on their past experiences in market downturns and are using that knowledge to better position themselves for what they see as an eventual market rebound that can deliver solid investment gains.”
Ah yes, using history and past experiences to gain in life. Isn’t that what life is really about, both professionally and personally. And, if you look at the past and similar economies to this current one – the 1980’s Resolution Trust Corporation mess, and the 1990’s Savings and Loans fiasco, where insiders made millions on distressed assets and loan pools – today’s investors need no longer to be on the inside to take advantage of these once in a lifetime opportunities.
That’s right. FDIC loan pools and distressed assets are THE investment opportunity right now and offer tremendous investment opportunities for the beginner, intermediate and advanced investor with cash, equity or even IRA funds. The time is now. Get on this gravy train before it becomes historical discourse.
One last word from the millionaires… Looking at the regions representing the best potential investment opportunities, millionaires surveyed chose the U.S. over any other country or region, in both the short- and long-term. Almost two-thirds (62%) chose the U.S. as the single region with the potential for the highest returns in the next year and 60 percent chose it for the next five years. Not surprisingly, 80 percent of millionaires surveyed plan to invest in the U.S. in the next year.
Remember, FDIC loan pools and distressed assets are THE investment opportunity right now and offer tremendous investment opportunities.