Chicago, September 17, 2014 — The number of wealthy American households with a net worth greater than $25 million has reached a new record, according to a recent study by Spectrem. Additionally, the wealthiest of these “one percenters” now consist of working households with two income wage earners under age 55, nearly three-quarters of whom work more than 40 hours per week.
And, while ninety percent of older wealthy households surveyed reported they are satisfied with the responsiveness and performance of their financial advisors, just 69 percent of these younger wealthy households are satisfied with their financial advisor, and even fewer feel their advisor has the required knowledge and expertise.
The study reveals that younger wealthy investors are changing the way they interact with financial providers and advisors as well as their expectations regarding the services and investment offerings provided by these companies. While face-to-face meetings are still preferred by most individuals regardless of age, younger investors are embracing technology such as Skype and Facetime for informal meetings. They believe this online meeting technology will become increasingly important as advisors seek to communicate with their children and grandchildren.
“Every $25 Million Plus investor has financial concerns and attitudes that are unique and multi-layered,’’ says George H. Walper Jr., President of Spectrem Group. “These investors consider themselves knowledgeable about investments and look to financial advisors for state-of-the-art investment opportunities and financial technologies. For the most part, they are not done extending their portfolios or wealth levels.”
Additionally, these younger investors want to educate their children regarding financial issues, expressing greater interest in having their children meet with their advisor, as well as exposing their children to educational programs regarding wealth.
Other key findings in the report include:
· The wealthiest investors have a sizable portion of their portfolios invested in alternatives.
· The $25 Million Plus investor is likely to continue to work as long as they possibly can, with no plans to retire. Almost three-quarters of the “one percent” still work more than 40 hours a week.
· The younger wealthy investors place a greater emphasis on using their wealth to help others.
· They are also more concerned about the financial health of the next generation.
· Wealthy business owners have greater risk tolerance than other investing groups, and show the greatest concern over the legacy they are leaving for their children/grandchildren
Additional insights about wealthy investors from the $25 Million Plus Investor are available at Spectrem.com and Spectrem’s Millionaire Corner, including:
Millionaire Corner story
About Spectrem Group
Spectrem Group (www.spectrem.com) is the leading research provider in the wealth management marketplace. Each month, Spectrem Group surveys more than 1500 investors with $100,000 to $25 million of net worth regarding their investment attitudes and behaviors.
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