Wednesday, May 6, 2009
CNNMoney comments on the results of a Fidelity study suggesting that "millionaires" are taking action to rebuild their wealth. From CNNMoney:
Who wants to be a millionaire when nearly half of them don't even feel rich, according to a survey released Wednesday.
Some 46% of the 1,012 participants in the annual Fidelity Investments study said they "do not feel wealthy and are taking action to reassess and rebuild their wealth."
That's a big change from last year, when only 19% said they didn't feel rich. Fidelity blamed the drop on the corresponding plunge in wealth, with an average 19% reduction in household income and investable assets, and a 28% plunge in real estate holdings.
Fidelity, a Boston-based financial services company, described the average respondent as having $3.5 million in assets and $306,000 in annual household income.
The millionaires reported various ways in which they're adjusting portfolios amid the recession. The bearish types are dumping more of their money into fixed-income securities, while the bulls are buying more stocks, according to Fidelity.
Millionaires feel less "rich" (a.k.a., wealth effect), and the personal saving rate surges. Ahem, they are consuming less, too.