The next generation of millionaires are working hard for their fortunes and are generally optimistic, Fidelity found in its sixth Millionaire Outlook, released Monday.
What's more, 92% of them work with a financial advisor, even if it's just for validation of their investment choices.
Young millionaires are aware that much of their wealth is the result of an inheritance, but the survey found Gen X and Y millionaires are actively participating in growing it even more. Young investors averaged 30 trades per month, the survey found, and 73% said they've become more involved in the last five years.
"Gen X/Y millionaires are taking a dramatically different approach to their wealth than the older generations, signaling a new era of wealthy investors," Bob Oros, executive vice president of Fidelity Institutional Wealth Services, said in a statement. "These next-generation millionaires, who have already surpassed their older counterparts in total assets, 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."
Fidelity asked respondents to rate their financial outlook on a scale where 100 is the most favorable and -100 is the least favorable. Gen X and Y respondents put their outlook at 51, 58 points above boomers. Fidelity noted this was the highest level since it began conducting the survey in 2006.
In addition to having a more positive outlook than boomers, the survey found 92% of younger millionaires work with a financial advisor, compared with 68% of boomers. Even among respondents who said they make their own investment decisions, 61% work with at least one advisor for validation.
Among the services that younger millionaires are looking for from their advisors are estate planning, charitable giving and retirement planning. Boomers and older millionaires tend to look to advisors for help with investment and portfolio management.
"Financial advisors should be prepared to deal with Gen X/Y clients who are knowledgeable and who like to be involved in their investments," Oros said. "These new millionaires are collaborators, looking for a validator to partner with on their investments."