Slovak millionaires have revealed, thanks to which they are constantly rich even during the pandemic. The key is to change their tactics – Startitup

The unique survey of dollar millionaires J&T BANKA Wealth Report shows that the biggest source of wealth and appreciation of the assets of successful Slovaks in the last 12 months were profits from investing – especially in stocks and real estate.

From entrepreneurs to investors

Right at the beginning of the report, it is stated that dollar millionaires in Slovakia and the Czech Republic are at their peak. Compared to last year, their average age has shifted by one year. Only in half of the cases are entrepreneurs or business owners in their fifties. The average age of the dollar millionaire in Slovakia is 53 years, in the case of the Czech Republic it is 55 years.

Compared to previous years, this has changed. In previous surveys, millionaires have identified business or employment income as a decisive factor in increasing their wealth. The focus of valuing their assets thus shifts from business to investment. In the press release, they state that it is possible to say that they are being transformed from entrepreneurs to investors.

“Of course, it is also necessary to take into account the fact that after last year’s sharp fall in asset prices in March, their prices subsequently rose sharply, which had an impact on wealth growth more than in previous years. Well, that wouldn’t be possible if Slovak investors hadn’t come a long way in years, ” explains Anna Macaláková, Director of J&T BANKA in Slovakia.

“It was during the pandemic crisis, which significantly affected the financial markets, that they confirmed their investment maturity, when not only did they not sell their assets, but many of them used the market decline to buy more and thus earn the subsequent rise in their prices., “He adds.

A new hobby

The survey looked at this phenomenon closely, and the report shows that the financial outlook, economic recovery expectations and the desire to invest among Slovak millionaires are also confirmed by the fact that they expect the most interesting appreciation from foreign companies (46%). The survey also showed another interesting phenomenon.

For many, especially younger millionaires, investing in stocks has become a hobby and specific titles are trying to buy in smaller volumes. They want to see if they can read and understand the market.

“However, if they decide to invest more funds, they still remain loyal to mutual fund investments and the consultation of financial decisions with a private banker plays an important role.” says Anna Macaláková.

The report also shows that high expectations of appreciation among millionaires were maintained this year by investments in building land and residential real estate, which are experiencing a continuous rise in prices.

“Millionaires believe in their potential due to long-term low interest rates in the market, they also perceive them as protection against inflation and see a structural excess of demand over supply, especially due to the complexity (time and administrative) of construction legislation,“It says in a report.

In addition, millionaires also believe in investing in startups, and confidence has risen in the case of cryptocurrency. The survey showed that younger investors tend to believe in cryptocurrencies.

source: J&T BANKA WEALTH REPORT

They are secured by real estate investments

As mentioned above, millionaires have also succeeded in investing. As many as two thirds of Slovak millionaires stated that their assets had grown in the last year. This is mainly due to the above-mentioned investments in shares and real estate, but income from business or employment still plays an important role. It is also interesting that the younger millionaires did better in getting richer than the older ones.

The press release also states that many millionaires expect their wealth and wealth to continue to grow. They point to high inflation as a factor that could threaten them in the future.

“Therefore, they are hedged against it, especially by investing in real estate, corporate shares or other riskier investments with the potential for higher returns, which would not only protect their assets from the effects of inflation, but also enhance it,“Says Anna Macaláková.

At a time when we are facing a climate crisis, it is also necessary to take the environment into account. Nine out of ten Slovak dollar millionaires are of the opinion that a successful business can be achieved without harming the environment

Source: TS / J & T BANK