Will Millionaires spend more this holiday season? What are they likely to buy? Who’s on their list? Find out.
The 2012 The Fantasy Gift catalog from Nieman Marcus features, among other luxury gifts, a $354,000 McLaren spider. Other suggestions include a walk-on role in Annie: The Musical for $30,000 or a private dinner for 10 for a sweet quarter mill.
Sounds like a hard sell for Millionaire investors participating in the Millionaire Corner monthly survey for September. Few Millionaires – individuals with investable assets of $1 million or more - indicate they are planning a “major holiday purchase” this year. Only 6 percent of Millionaires say they’re likely to buy a car, jewelry or other large-ticket item. Even fewer, 4 percent, say they are willing to take on debt to finance their holiday purchases.
The sentiment is consistent with earlier Millionaire Corner research, which finds that Millionaires are a largely moderate group of investors who pride themselves on their hard-working, penny pinching ways. Most Millionaires (76 percent) plan to spend the same amount on holiday gifts this year compared to last. About 10 percent plan to spend less, while 14 percent plan to spend more.
Those who plan to spend less most commonly cite a decline in disposable income (38 percent), though 29 percent say they think “the holidays are too commercialized and should not be about gifts” and 27 percent believe the economy is getting worse.
The primary factor cited for spending more is “I have saved property to spend more this year” (44 percent). About one-third of Millionaires say its import to celebrate the holidays and roughly one-fourth say they have more disposable income.
Just how much are Millionaires planning to spend? Twenty percent plan to spend $2,000 or more on gifts this year, while more than half (57 percent) plan to spend $500 up to $2,000. (More than half (55 percent) also plan on giving $500 or more to charity, 47 percent plan to travel during the holidays.)
Who’s on the shopping list? Nearly three-fourths (74 percent) give to their children, and 72 percent give to their spouse. Less than half of Millionaires give holiday gifts to grandchildren (45 percent), friends (36 percent), extended family (30 percent), service providers (29 percent) or siblings (26 percent).