NEW YORK (MainStreet) You're this close to being a millionaire. Just can't seem to get over the hump into seven-figure heaven? Here's how to fix that and get that first Big One out of the way.
First, "near millionaires" will be defined for our purposes of discussion as having about $800,000 in total assets, with an average annual household income of $150,000. Fidelity did a study on this pool of prosperous investors and found that nearly half are women (49%) and Gen X/Yers (49%). That's As compared to most of today's millionaires, who are predominantly rich old guys, according to Fidelity. So the near millionaire club is inclusive. And growing. These investors are expected to amass $22 trillion and $41 trillion in assets by 2023, respectively.
What's holding them back from reaching the million dollar mark? Well, according to the study, 70% say that they are not very knowledgeable about investing. Think how well they would have done if they had just picked up an investing book or two.
And they are playing it too safe. The research says that while these seven-figure wannabes are on top of their financial basics, such as debt and household expenses, they are "not comfortable taking on risk to maximize returns."
Financial advisors may be disappointed to learn of one overriding attitude these near millionaires share: 77% don't have a financial plan -- and 38% don't want one.