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Featured Advisor

Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management


State: IL

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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The Millionaire Mindset in 2011

How their attitudes have changed since Recession

While Millionaires are not ready to acknowledge that the Recession is over, many of their actions and opinions are clearly indicating a more optimistic attitude than in the past. Keep in mind, however, that they can quickly re-trench and return to their thrifty conservative ways.

Both quantitative and qualitative research with investors conducted by Spectrem Group in the last four months reveals the following:

- Eighty one percent of investors do not believe the Recession is over.
- Twenty eight percent plan on reducing debt in 2011, a similar number to 2010. Only 10%, however, plan to reduce debt at the expense of saving.
- The average Millionaire household saved over $39,000 in 2010 and plans to save as much or more in 2011. (This includes contributions to 401(k) and similar savings plans).
- Forty five percent plan on increasing the amount they have invested in the stock market.
o The technology sector is where most Millionaires plan to invest (58%) followed by the Pharmaceutical industry (48%) and Healthcare (47%).
- Twelve percent describe themselves as Conservative investors compared to 28% at year end 2009.
o Only 2%, however, are Aggressive-the same as at the end of 2009.
- Forty one percent are interested in investing in Gold and 24% are looking at other precious metals.
o But 22% plan to remain in Cash.

Millionaires desire to return to their previous lifestyles, but their attitudes have changed somewhat dramatically:

“I need to pay attention more because no one else will take care of it for me.”

“I can’t put all of my assets with one provider because who knows? Can you believe what happened? And we all just sat around and watched….?”

“The only one I can trust is myself. My broker…you know, he is better than most. But he doesn’t have a crystal ball.”

In addition to concerns about trust and whether it could happen again, Millionaires have the same concerns as any other family. Maintaining their standard of living (73%), the financial situation of their children/grandchildren (69%), and health issues (64%) top the list of personal concerns. More than half (55%) of younger Millionaires (those under age 55) are worried about financing the education of their children.

“Tuition prices are over $50,000 a year and without any financial aid it really bites into our annual salaries. What with a mortgage and trying to save for retirement and the regular monthly expenses, it’s not as easy as everyone thinks. We run a small business and we are not liquid. I’m not sure how to come up with the cash we need.”

As far as spending opportunities? Nineteen percent plan on purchasing an automobile in the next 12 months and 28% will buy an Ipad (or similar technology). Instead of buying a vacation home (only 5%), 36% are planning a major home improvement.

Thinks are looking up…..but caution still abounds.