The biggest source of wealth and appreciation of assets of successful Slovaks in the last 12 months were investment gains, especially from investments in shares and real estate, J&T Banka's Wealth Report on dollar millionaires indicated. 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 terms of the development of their wealth, the year 2021 was more favourable for them than the year 2020. In total, 310 dollar millionaires joined the 10th edition of the regular survey; 107 were Slovaks and 203 were Czechs.
Anna Macaláková, the J&T Banka director in Slovakia, points out that it is also necessary to take into account the fact that after last year’s decline in stock prices, their prices subsequently rose sharply, which had a greater impact on wealth growth than in previous years.
“But this would not be possible if Slovak investors did not go a long way over the years,” said Macaláková, as cited by the TAS newswire. “It was during the pandemic crisis, which significantly affected the financial markets, that they confirmed their investment maturity: not only did they not sell assets, but many of them used the market decline to buy others and earned on the subsequent rise in their prices.”
Dollar millionaires in Slovakia and the Czech Republic are at their peak and fully active and compared to the previous year, their average age increased by one year. Only in half of the cases are entrepreneurs or business owners over 50 - in Slovakia, the average age of a dollar millionaire is 53 years, in the Czech Republic 55 years. One-sixth of millionaires are of pension age.
Two-thirds of Slovak millionaires say that their assets have grown in the last year, thanks especially to investments in stocks and real estate, but income from businesses and employment still plays an important role. Younger millionaires got richer faster than older ones. This phenomenon may be due to their higher exposure to riskier assets, including stocks or cryptocurrencies, which have risen sharply in recent months.
Most millionaires expect their assets 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,” said Macaláková.