RSS Facebook Twitter LinkedIn

Featured Advisor

Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

Click to see the full profile

Share |

High Net Worth Wealth Management: What You Need to Know

More than one third of high net worth investors have no regrets about their financial decisions prior to the recession.

| BY Kent McDill

There are numerous factors which require consideration when determining the best high net worth wealth management strategies to employ. Advisors must know what their investors are thinking about their financial decisions in the past and their beliefs about their financial future.

When asked about their financial behavior prior to the economic collapse of 2008, high net worth investors responded differently than investors from wealth segments with lesser net worth. While 46 percent of Mass Affluent investors said they wished they had saved more, only 9 percent of high net worth investors felt that way. Instead, the high net worth investors wish they had taken more risk in their investments (27 percent) than the Mass Affluent (17 percent) or Millionaire investors (25 percent).

More high net worth investors said they wished they had invested more in real estate (18 percent) compared to Mass Affluent (11 percent) or Millionaire investors (15 percent).

Interestingly, 38 percent of high net worth investors said they had no regrets regarding their decisions prior to the economic downturn.

When asked the question “Are You Wealthy?’’ and asked to place themselves on a sliding scale from zero to 100, with “zero’’ indicating not wealthy and “100” indicating wealthy status, high net worth investors placed themselves at 72.14. When asked the same question about their parents, they placed them at 41.63.

Eighty percent of high net worth investors said their financial situation is better today than it was one year ago, while 66 percent said they expect their financial situation to improve over the next 12 months. Fifty-eight percent said they pay closer attention to global economic events than in the past due to its influence on their own financial status.

The highest percentage of high net worth investors, 25 percent, said the federal tax rate should be between 16 and 20 percent. While 17 percent suggested 5 percent lower, from 11 to 15 percent, 20 percent suggested 5 percent higher, from 20 to 25 percent. Eighty-seven percent placed their choice for recommended federal tax rate from between 8 percent and 30 percent.

The U.S. government’s bond buying program, designed to improve economic conditions in the wake of the recession, has had a huge impact on high net worth wealth management. Thirty-eight percent of high net worth investors think the government’s reduction of bond buying will cause a drop in the stock market, while 38 percent think it will increase inflation. Thirty-five percent expressed their belief that the bond-buying program was a good thing for the economy.


About the Author

Kent McDill

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.