7 defining differences between the ultra-wealthy and the 'millionaires next door'
- Not all high net worth individuals have the same approach to money.
- Ordinary millionaires tend to hold more of their wealth outside the stock market and within their home countries than the ultra-wealthy.
- Millionaires' fortunes are more stable than those of the ultra-wealthy, in part because of their investment choices.
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Not all high net worth individuals have the same approach to their money.
The "millionaires next door" - those with net worths between $1 million and $5 million - manage and spend their fortunes quite differently than the ultra-wealthy, whose net worths exceed $30 million.
Some of the differences are superficial, like a preference for subtle displays of wealth over flashy labels. Others, like their preferred investment vehicles, can have substantial impacts on their fortunes.
Read more: 5 things the ultra-wealthy are doing to prepare their portfolios for a possible recession, from ditching bonds to stockpiling cash
Keep reading to learn more about the differences between ultra-high net worth individuals and the millionaires next door. For the purposes of this article, Business Insider also examined the differences between millionaires' and billionaires' money habits. While the differences highlighted below speak to trends among the different levels of wealth, they are by no means exhaustive.
1. The ultra-wealthy work because they want to, not because they have to.
2. When the ultra-wealthy do display their wealth, they prefer to do it subtly.
3. If the ultra-wealthy retire at all, they do it later.
4. Millionaires next door are younger than the ultra-wealthy, on average.
5. The ultra-wealthy favor riskier investments than millionaires.
6. Millionaires' fortunes are more stable than those of the ultra-wealthy.
7. The ultra-wealthy are more likely to spread their portfolios across the globe.
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