What do Affluent investors consider to be the most serious threats to achieving their financial goals at this time?
From the perspective of the Affluent investor, the most serious threat to achieving their household goals at the present time is not so much the direction of the economy, or stock market conditions, or even the budget deficit debate. It is the political climate, the perceived lack of willingness of lawmakers and the president to work together to encourage the recovery.
This was demonstrated anew when the White House and lawmakers failed to avert sequestration, the mandatory, across the board spending cuts that took effect March 1. President Obama met with House Republicans earlier this month, but both sides remain at loggerheads over competing budget plans. "Ultimately, it may be that the differences are just too wide," he said in an interview broadcast on ABC's "Good Morning America."
Seventeen percent of Affluent investors surveyed by Millionaire Corner said that the political climate is the most serious threat to achieving their household’s financial goals at this time. This puts concerns about D.C, dysfunction and gridlock on par with those regarding the economy, which was cited by 16 percent of respondents as the biggest obstacle to achieving their household goals. Eleven percent said market conditions, while 7 percent mentioned the continuing European Zone debt crisis.
Between Affluent households overall and Millionaire households in particular, Millionaire concern over the stormy political climate is especially acute. More than one-fourth (26 percent) cited this as the issue they consider to be the most serious threat to achieving their household’s goals. This is not surprising as at the heart of the ongoing budget debate is whether taxes should be raised on Millionaires and by how much.
On a positive note, despite the failure to avert sequestration, concern over the political climate has lessened in the three months since this question was last asked (17 percent vs. 26 percent). Likewise, Affluent investors consider market conditions to be less of a serious threat to achieving their household goals at this time than they did in December. But there is more concern among these investors over inflation (10 percent vs. 1 percent responding in December), the crisis in the euro zone (7 percent vs. 4 percent) as well as the economy in general (16 percent vs. 14 percent)
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.