Most millionaires aren't born rich. During his three decades researching the wealthy,
Indeed, a study by
Understanding where the rich like to put the 55% that makes up their investable assets can be enlightening to investors of lesser means. And while there's no guarantee that adopting some of the investing habits of millionaires will turn you into one, it certainly can't hurt. Check out three of the ways to invest like a millionaire to see if any or all might be right for you.
Favor stocks over bonds
Millionaires invest 44% of their investable assets in stocks, according to Spectrem, with a strong preference for
Buy tech and health-care stocks
When private investing club Tiger 21 surveyed its members in 2016, it found that millionaires think technology and health care are the two most promising sectors for investors over the next three years. (At least $10 million in investable assets are required to gain admission to Tiger 21.) So far, so good. Both sectors are outperforming the S&P 500 in 2017. Looking ahead, health-care and pharmaceutical stocks do have powerful demographic tailwinds thanks to aging baby boomers. As for technology stocks, big names including Amazon.com (symbol AMZN),
Be selective about investing advice
Spectrem found that just 24% of millionaires consider themselves "very knowledgeable" about investment, while 59% admit they "still have a great deal to learn." That might explain why two-thirds of millionaires consult with advisors, at least to some degree, about investments. Tiger 21 found that when it comes to doing their own research, its members favor newspapers, magazines and websites over television and radio. The top four sources of financial news and information for Tiger 21's millionaires (in order of preference):
Dan Burrows is a Contributing Writer for Kiplinger.