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Ways of the Wealthy

What do wealthy people do with their money? What do they value? What do they want? What do they think about? Researchers constantly probe the well-heeled to find out. Here are a few tidbits.

What do wealthy people do with their money? What do they value? What do they want? What do they think about? Researchers constantly probe the well-heeled to find out. Here are a few tidbits.

  • Freedom: Fifty percent of those with $250,000 or more in investable assets (and half with at least $1 million) define wealth as having “no financial constraints,” whereas only 16 percent say it means “surpassing a certain asset threshold” and only 10 percent define it as “never having to work again.” Source: UBS Wealth Management Americas
  • Wealth transfer: Among individuals in families with an average net worth of $20 million or more, 80 percent expect to pass on their wealth to direct family members, yet only 46 percent have a wealth transfer strategy or plan in place and only 38 percent have prepared a will but nothing else. Source: SEI
  • Where they live: The states of Maryland, New Jersey, Massachusetts and Connecticut have the greatest density of millionaire households. Source: Phoenix Marketing International
  • Inheritance: Less than half of investors with a net worth of $3.5 million or more say that leaving a financial inheritance is important. Source: U.S. Trust
  • Advisor consultations: Among members of Generation X and Generation Y who have $1 million or more in investable assets, 61 percent make their own investment decisions but work with at least one advisor. Source: Fidelity Millionaire Outlook
  • Multiple services: Wealthy clients are now seeking a mix of services and the ability to access and interact with their portfolios and financials online, on their own and in collaboration with advisors. Source: Aite Group
  • Risk worries: While millionaires of tomorrow have a grip on financial basics, they are not comfortable taking on risk to maximize returns. Source: Fidelity Insights on Advice
  • Investments: Those having  $1 million or more investable assets plan to commit 50 percent of their asset allocation to equities in 2014, and they feel  bullish on financial services, health care, industrial and the consumer discretionary sectors.
  • Real estate: Around 3 percent of the world’s total real estate value, or $5.3 trillion, is owned by the world’s 200,000 ultra-high-net-worth individuals with net assets of $30 million and above. Source: Savills, with Wealth-X

Linda Koco, MBA, is a contributing editor to InsuranceNewsNet, specializing in life insurance, annuities and income planning. Linda can be reached at [email protected] [email protected].


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