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Asset Preservation Advisors




City:Atlanta

State: GA



BIOGRAPHY:
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.

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Investor Trends Between 2005 and 2013

Ultra High Net Worth investors stayed active in the stock market through the recession.

| BY Kent McDill

A segment of the affluent investors in America have missed the financial bump from the resurgent stock market, a Spectrem report shows.

Spectrem’s Affluent Market Insights report indicates that the Mass Affluent investor, with a net worth between $100,000 and $1 million, significantly reduced its stock market investment after the recession of 2008 and has not returned despite the strong showing on Wall Street.

In 2005, 20 percent of Mass Affluent assets were in the stock market, while 15 percent were in mutual funds and 13 percent were in deposit products such as checking accounts and money market funds. By 2013, the Mass Affluent had reduced its asset total in stocks and bonds to just 11 percent, with 20 percent in the safer deposit products and 10 percent in mutual funds.

Ultra High Net Worth investors, with a net worth between $5 million and $25 million, either did not leave the stock market or made a quick return. The UHNW investors had 21 percent of assets in the stock market in 2005 and dropped slightly to 19 percent by 2013. They maintained their level of investment in mutual funds to 12 percent and dropped slightly in deposit products to 11 percent.

There has been significant change in the investment risk of investors from 2005 to 2013. Among Mass Affluent investors, there has been a jump in aggressiveness, from 14 percent who were either “most aggressive’’ or “aggressive’ in 2005 to 20 percent in those two categories in 2013.

The change has been even greater among UHNW investors. In 2005, there were just 16 percent of investors who considered themselves in the two aggressive categories and in 2013 the number jumped to 32 percent.

There were similar changes among Millionaire investors with a net worth between $1 million and $5 million. In 205, only 14 percent considered themselves any level of aggressive, and in 2013 29 percent said they were either “most aggressive’ or “aggressive’’.

 



About the Author


Kent McDill

kmcdill@spectrem.com

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 www.nba.com. 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.