Financial News

Just The Job For Becoming A Millionaire

Fancy becoming a millionaire but not sure about which professions will help you succeed the most?

Then new research from the USA may well help, as the profession which generates most high net worth individuals is revealed as entrepreneurs and business owners.

That’s the finding for the annual Millionaire Corner study which polled investors with between £3 million and £15.6 million in disposable cash, and found that just five occupations provide 60% of America’s wealthiest investors.

Perhaps finding entrepreneurs and business owners in the top spot, taking 27% of the vote is not so much of a surprise, but in second place with 15% are senior corporate executives.

Third, with 7%, are managers and then professional investors with 6% and the lastly, doctors and dentists, who also account for 6% of the wealthiest investment group.

Taking risks

However, each group puts their wealth-building success down to different strategies.

The survey found that three-quarters of entrepreneurs and business owners said that ‘taking risk’ is the main reason for their success.

In comparison, just 58% of professionals, such as lawyers, doctors and accountants, said their investment strategy to grow their wealth included risk. Most of them – around 96% – pointed to their education as a key factor in their success.

Nearly all corporate senior executives (99%) credited their success to hard work rather than education.

However, each of the groups also admitted that  living  a ‘frugal’ lifestyle was another reason why they accumulated wealth.

The survey found that the members of the millionaire’s investing club are a diverse set of people.

Paying less tax

More than 80% in each of the groups cited ‘smart investing’ as a vital tool to building wealth and the key to the door of the millionaires club.

With the average portfolio of those surveyed amounting to £15 million, their money is invested in a broad range of assets.

Most wealthy investors also work hard to safeguard their money from the taxman by capitalising on tax-free bonds, charity donations and life insurance policies with beneficial tax relief.

Many also admitted that they work closely with tax and financial planners to limit the tax they pay.

Essentially, the survey found there was no mystique about how the wealthy create their money. Many are surprisingly down to earth and hard-working, which highlights how they managed to get rich in the first place.

For most, they earned it.

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