The IC Markets Wealth Generation Report discovered that more than half of local investors who boast more than $250,000 in investable assets feel they would need to rely on a standard 9 to 5 job as their main source of wealth.
By definition, investable assets are anything that can be cashed out quickly – such as cash, stocks, bonds, funds and trusts – and does not include big-ticket items such as property, vehicles or jewellery.
After polling 500 local investors, the report sorted the financially savvy into three categories: those with investable assets up to $250,000, those with assets between $250,000 and $1 million, and those who boast more than $1 million in investable assets.
Unsurprisingly, just 13 per cent of investors who had more than $1 million in investable assets said they would rely on a traditional job to be their main source of wealth.
Somewhat surprisingly, among early-stage investors with assets between $1 and $250,000, 28 per cent said they don’t anticipate a full-time job to be their main source of wealth going forward.
IC Market’s head of marketing Matt von Abo said the research showed up-and-coming investors prioritised using their investments to escape from the daily grind.
“In this research we saw an interesting trichotomy and marked difference in the way that the emerging wealthy behave when compared to their less and more wealthy counterparts,” Mr von Abo said.
“They are gaining confidence in their ability as an investor, have amassed a significant amount of wealth, and can see that investing and trading is able to accelerate their wealth creation to fast track their retirement.”
The $250,000 to $1 million cohort was the most likely to rely on active trading of Forex, shares and cryptocurrency as their main source of wealth in the future, and also the most confident that their wealth is protected from external threats such as COVID-19.
“With the benefit of more years to weather threats to their wealth, the emerging wealthy are less concerned than those closer to retirement about factors such as Australia’s response to COVID and tensions with China,” Mr von Abo said.
“They are also keen to ride the highs and lows of more volatile investments such as cryptocurrency and when they do invest in stocks, it’s more likely to be technology rather than the traditional safe havens of financial services and resources.”
A study by securities exchange operator ASX found that in 2020, close to nine million Australians held investments outside their superannuation and primary property.
More than half of those have investments in shares and close to a quarter of all investors only started diversifying their wealth in the past two years.
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