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Featured Advisor



Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management

City:Northbrook

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

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It's Tougher at the Top for America's Wealthy

Even as the number of US millionaire households climbed to 8.6 million in 2011, 83 per cent of wealthy US investors say achieving the ‘American dream’ is getting harder.

The number of US households with a net worth of $1 million or more, not including primary residence (NIPR), continues to rebound along with the stock markets, rising by 200,000 to 8.6 million in 2011, according to the Affluent Market Insights 2012 report by Spectrem Group. It marks the third consecutive year of growth following the 27 per cent decline in millionaire households to 6.7 million in 2008, but the total millionaire population remains below the pre-recession high in 2007 of 9.2 million.

The ranks of all affluent investors increased in 2011:

  • Those with $100,000 or more in net worth NIPR reached 36.7 million from 36.2 million in 2010
  • Those with $500,000 or more in net worth NIPR climbed to 13.8 million from 13.5 million in 2010
  • Those with $5 million or more in net worth NIPR rose to 1.078 million from 1.061 million in 2010
  • Those with $25 million or more in net worth NIPR grew to 107,000 from 105,000 in 2010

Despite their increasing portfolios, America’s wealthy investors remain worried about the future. More than four out of five, or 83 per cent of 1,252 affluent investors with net worth of $100,000 or more NIPR indicate attaining the American dream will be harder for future generations. While wealthy investors under 40 identify owning a home as achieving the American Dream, older investors say it means having sufficient retirement assets. All investors, however, agree the American Dream can be defined as 'an equal opportunity for all people'.

"Even if they are not directly impacted, continuing high unemployment and the depressed housing market are bedeviling wealthy investors," says George H. Walper, Jr., president of Spectrem Group. "Investor optimism has climbed from negative in April 2011 to neutral in February 2012, according to our monthly Spectrem Affluent Investor Confidence Index, but investor outlook won't significantly improve until unemployment falls significantly lower."

Like unemployment, housing is a bellwether for investor optimism. "Even though the wealthy have substantial assets in addition to their primary residence, their homes remain an important investment and a touchstone of achieving the American Dream," Walper says.

Spectrem research shows that primary residence makes up:

  • 29 per cent of total assets for Mass Affluent ($100,000-$999,999 Net Worth NIPR)
  • 16 per cent of total assets for Millionaire ($1m-$5m Net Worth NIPR)
  • nine per cent of total assets for Ultra High Net Worth: ($5m+ Net Worth NIPR)

 

To read the original article, follow link to CPI Financial.