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Featured Advisor



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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Rx for Wealth: High Net Worth Doctors Favor Tech Stocks

High net worth doctors, lawyers, dentists and accountants favor high tech stocks as a strategy for building wealth. What else do they prescribe?

| BY Adriana Reyneri

High net worth doctors, lawyers, dentists and accountants favor high tech stocks as a strategy for building wealth, according to a new Millionaire Corner study on professionals and their investment preferences.

Nearly two-thirds (64 percent) of high net worth professionals are likely to invest in stocks in the next 12 months, and see the most potential in the high tech sector, according to our Effectively Servicing Professionals study, which defines high net worth investors as having investable assets of $5 million to $25 million.

Sixty percent plans to invest in technology companies in the next year, while 45 percent of professionals are leaning toward investing in health care companies and 32 percent see opportunities in the pharmaceutical sector.  In contrast, high net worth investors from all occupations, including managers, business owners and senior corporate executives, are more bullish on health care (57 percent) and pharmaceuticals (44 percent), and less interested in technology stocks (58 percent) than are professionals.

High net worth professionals also see more opportunity in real estate and international investments compared to high net worth investors from all occupations. More than 40 percent of high net worth professionals say they are likely to invest internationally, compared to 35 percent of total high net worth investors. And, 20 percent of professionals are interested in real estate investments, compared to 18 percent to all high net worth investors.  

Gold and other precious metals have less appeal for high net worth professionals than for total high net worth investors, 15 percent vs. 21percent, respectively, but high net worth professionals are more likely to invest in other types of alternative investments, such as hedge funds and private equity, than total high net worth investors, 25 percent vs. 18 percent, respectively.

High net worth doctors, lawyers, dentists and accounts also show a stronger preference for individual corporate and municipal bonds than do high net worth investors as a whole. They are also more likely to invest in managed accounts and those professionals who chose to invest in mutual funds maintain a higher average balance compared to total high net worth investors.

More than 70 percent of high net worth professionals own U.S. stock mutual funds for an average balance of more than $1 million, compared to $768,000 for high net worth investors as a whole. The average balance for the 35 percent of high net worth professional who invest in municipal bond mutual funds is $643,000, compared to $427,000 for total high net worth investors.  More than one-third (34 percent) of high net worth professionals invest in U.S. bond mutual funds and their average balance is $623,000, compared to $298,000 for the total. The average international mutual fund balances is $287,000 for the 47 percent of high net worth professionals who have selected this investment, compared to $216,000 for total high net worth investors. More than one-fourth (26 percent) of high net worth professionals invest in exchange-traded funds and their average balance is $469,000, compared to $324,000 for total high net worth investors.