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Death knell for 9-to-5 among ‘emerging wealthy’

  • People starting to amass wealth are less likely to work a full-time salaried job.
  • This category is significantly more confident than those with greater wealth.
  • Emerging wealthy people are more likely to consider trading of FX and cryptocurrency.

Working nine-to-five, what a way to make a living!

While Dolly Parton first sang those lyrics more than 40 years ago it seems more people beginning to amass more wealth are starting to sing a different tune.

A new report released today (December 6) has sounded the death knell for traditional nine-to-five jobs among a rising category of ‘emerging wealth’ investors.

The IC Markets-commissioned report of 500 Australian investors, showed that A$250,000 in investable assets is the tipping point where investors become less likely to depend on a traditional full-time salaried job.

It is at that point they are more likely to consider investment, self-employment and active trading as their main source of wealth generation in the future rather than working nine-to-five.

The IC Markets Wealth Generation Report identified three investor types – early-stage investors with assets up to A$250,000, the emerging wealthy with investments valued between A$250,000 and A$1 million and established investors with more than A$1 million in investable assets.

IC Markets Head of Investment Insights Matt von Abo said the research revealed an interesting trichotomy and marked difference in the way that the emerging wealthy behave when compared to their less and more wealthy counterparts.

“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,” he said.

Among early-stage investors with assets of up to A$250,000, some 72% said they would rely on a traditional full-time job to be their main source of wealth in the future.

That figure falls to just 41% among the emerging wealthy, and falls further to only 13% of those with more than A$1m in investments.

According to the data, the emerging wealthy are also more likely than the other investors to consider active trading of FX, shares and cryptocurrency as their main source of wealth in the future (10%), compared to 5% of early-stage investors and 7% of established investors.

The emerging wealthy group are also more likely (16%) than those with more (10%) and less accumulated wealth (13%) to view self-employment as their main source of wealth in the future.

This group are also most likely to invest in technology stocks and communication shares such as Facebook and Netflix.

Established investors typically show more interest in the financial services, resource, and industrial sectors.

The emerging wealthy are significantly more confident than those with greater wealth about external threats to their wealth such as tensions with China, Australia’s COVID-19 recovery, low interest rates and inflation.

“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 Matt 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.”

“This is consistent with our own experience of working with and supporting traders who primarily fall into this category of emerging wealthy,” Mr Matt von Abo said.

Many are on their way out of the nine-to-five world and seeking to be their own boss to amass greater wealth in a shorter timeframe.

They also have a higher risk appetite and use CFDs to gain more exposure to FX, shares and cryptocurrencies, Mr Matt von Abo said.

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