Fidelity® Millionaire Outlook Study Finds Next Generation Millionaires are Optimistic and Actively Engaged in Growing Their Wealth

Averaging 30 Trades per Month, Gen X/Y Millionaires are Hands-on Investors
Gen X/Y Millionaires Living and Giving Large, Averaging $54,000 in Donations to Charity Each Year
92 Percent of Gen X/Y Millionaires Use Financial Advisors; Rely on Them for Long-Term Planning

BOSTON – Fidelity Investments® today released results of its 6th Fidelity® Millionaire Outlook, an in-depth survey analyzing the investing attitudes and behaviors of millionaire householdsi. This year’s study found that – despite being three times as likely to acknowledge that inheritance helped build their fortune – the next generation of millionaires is working hard to grow their money. Gen X/Yii millionaires have the most positive financial outlook in the history of the study and are far from sitting idle with their investments, averaging 30 trades per month.

Using a scale where +100 represents the most favorable outlook, zero is neutral and -100 is the most negative outlookiii, this year’s study found that the current financial outlook of today’s Gen X/Y millionaire is +51iv, which is 58 points above his/her older counterpart (“Boomers+v”) and the highest level since the survey’s inception in 2006. This positive sentiment is reflected in this new generation’s lifestyle and their overall eagerness to leverage advice and do more with their money. The study found Gen X/Y millionaires are:

Actively investing and leveraging a wide range of asset classes – Personal involvement in investing is high, and they are more likely to make changes to their investment strategy

Living and giving large – Gen X/Y are more likely to enjoy their wealth, but also more likely to be generous with their time and money

Turning to financial advisors for investing ideas above all other sources – 92 percent of Gen X/Y millionaires work with an advisor, but they use advice differently than Boomers+

“Gen X/Y millionaires are taking a dramatically different approach to their wealth than the older generations, signaling a new era of wealthy investors,” said Bob Oros, executive vice president, Fidelity Institutional Wealth Services. “These next generation millionaires, who have already surpassed their older counterparts in total assetsvi, are likely to drive significant change among the investors who want to emulate them, the advisors who serve them and the financial services industry that supports them.”

Gen X/Y average 30 trades per month; three times more likely to see money as an “opportunity”
The study found that 71 percent of Gen X/Y millionaires said they feel knowledgeable about investing, and nearly twice as many Gen X/Y millionaires than older millionaires find investing enjoyable (72 percent). The majority of this new generation of millionaires is also actively involved in their investments, with nearly three-fourths (73 percent) saying they have increased their involvement in investments in the last five years, since the financial crisis.

In addition, Gen X/Y millionaires are more than three times as likely to see money as a source of opportunity than older millionairesvii, underscored by their aggressive investment strategies (73 percent of Gen X/Y millionaires are willing to put money into an aggressive strategy) and high trading volume, averaging 30 trades per month. Further, while older millionaires are keeping with consistent investing strategies (43 percent didn’t add any asset classes in the last year), Gen X/Y millionaires are more likely to make changes to their portfolios and to add complex investments like foreign currency, international individual securities, venture capital and derivatives (for tips on leveraging complex asset classes in your investment strategy, visit the Fidelity Viewpoints Active Trader page here).

“Gen X/Y millionaires are hands-on, sophisticated investors who are constantly researching new ways to grow their wealth,” said John Sweeney, executive vice president of Retirement and Investment Strategies at Fidelity Investments. “They have taken personal accountability for their financial futures: they’re getting educated, staying involved and seeking guidance from financial professionals and other trusted sources – a good roadmap for all investors.”



Gen X/Y millionaires generous with time and money; average $54,000 in donations to charity each year
According to the study, Gen X/Y millionaires were more likely to feel wealthy than Boomers+, with 91 percent of the new crop of millionaires feeling wealthy compared to 74 percent of Boomers+. Their sense of wealth is underscored by the fact that Gen X/Y millionaires are more likely to enjoy their wealth, but they are also more likely to be generous with their time and money. Gen X/Y millionaires own more vacation homes, boats and country club memberships and are more likely to take foreign vacations and fly first class. However, they are also more likely to volunteer or serve on the board of a charity (82 percent vs. 49 percent for Boomers+), and they average $54,000 in donations to charity each year. In addition, Gen X/Y millionaires are more generous with their plans to pass along as much of their wealth as possible to heirs (68 percent) (for more information on how to decide on the right charitable approach for you, click here).


Looking for validation, not delegation – 92 percent of Gen X/Y millionaires use financial advisors
According to the study, Gen X/Y millionaires are significantly more likely to work with financial advisors compared to their older counterparts (92 percent vs. 68 percent), and they are turning to advisors for investing ideas above all other sources. In addition, Gen X/Y millionaires are looking for validation from their advisors – 61 percent make their own investment decisions, but work with at least one advisor for a second opinion, while only 6 percent delegate their decisions entirely.
“Financial advisors should be prepared to deal with Gen X/Y clients who are knowledgeable and who like to be involved in their investments,” continued Oros. “These new millionaires are collaborators, looking for a validator to partner with on their investments.”

In addition to validation, the study found that Gen X/Y millionaires were relying on financial advisors for longer-term planning and were not as reliant as their older counterparts for investment strategies. While 73 percent of the Boomers+ group currently receives general investment/portfolio management from their advisors, only 48 percent of Gen X/Y millionaires do. The Gen X/Y group was more likely to be interested in longer-term services, such as estate planning/gifting, charitable giving and planning and retirement planning.

Learning from the new generation of millionaires
Millionaire Outlook is the first installment in Fidelity’s 2013 “Insights on Advice” series, which is designed to help financial advisors better attract and retain key client and advisor segments. To help financial advisors dive more deeply into additional client segments, such as female investors and first-time advice users, the second installment of the Insights on Advice series will be released this fall.

For more information on the study and how the everyday investor and financial advisors can apply the findings in their own lives, visit go.fidelity.com/insightsonadvice or view a Fidelity Viewpoints article here.

About the Fidelity Millionaire Outlook Study
The Fidelity Millionaire Outlook is a primary research study among 542 U.S. millionaire investors conducted via online survey during the period of May 15-23, 2013. Qualified respondents had investable assets of at least $1 million; excluding workplace retirement accounts and any real estate holdings. The data reflect a margin of error of +/-4.2 percent. Using a scale where +100 represents the most favorable outlook, zero is neutral and -100 is the most negative outlook, the survey measures millionaires’ confidence levels across five key areas -- the stock market, consumer spending, the economy, business spending and the value of real estate. Combined, the five variables make up a cumulative current and future confidence level, or “outlook.” The experience of the millionaire investors who responded to the survey may not be representative of the experiences of all investors and is not indicative of future success. Fidelity partnered with Bellomy Research, an independent third-party research firm, to conduct the study.

About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $4.3 trillion, including managed assets of $1.8 trillion, as of July 31, 2013. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

i Investable assets of $1 million, excluding workplace retirement accounts and any real estate holdings.
ii Millionaires 48 and younger; average age of 37
iii The survey measures millionaires’ confidence levels across five key areas -- the stock market, consumer spending, the economy, business spending and the value of real estate.
iv The Boomers+ group’s average current financial outlook was -7
v Millionaires 49 years old and older; average age of 65
vi Gen X/Y millionaires average $5.7 million in total assets compared to $5.2 million for older millionaires; includes total investable assets and employee-sponsored retirement assets; excludes real estate.
vii The Boomers+ group was more likely to see money as a source of security (54 percent)

The content provided herein is general in nature and is for informational purposes only. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider. Fidelity Investments does not provide advice of any kind. You should conduct your own due diligence and analysis based on your specific needs.

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