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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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Ultra-Wealthy Risk Tolerance

Perhaps in a bid to regain what they lost in the recession, ultra-wealthy Baby Boomers and seniors are more likely to identify their risk tolerance as aggressive

| BY Donald Liebenson


A generation that came of age during the economic collapse and subsequent recession has emerged with a more conservative risk tolerance. This investment mindset extends even to America’s wealthiest households, according to a new wealth level study conducted by Spectrem’s Millionaire Corner of investors with a net worth of at least $25 million.

Overall, a majority (53 percent) of the ultra-wealthy identify their risk tolerance as moderate, meaning they are willing to place a limited portion of their investment at risk in seeking moderate returns. Eleven percent is not willing to place any portion of their investments at risk.

Twenty-two percent aggressively seek high returns and is willing to place a significant portion of their investments at risk, while 14 percent identify their risk tolerance as “most aggressive” and willing to place all of their investments at risk.

Younger investors, with age on their side and more of a working life ahead of them, generally tend to be more aggressive in their risk tolerance, but even ultra-wealthy Millennials and Gen Xers were more likely than their older counterparts to identify their risk tolerance as either conservative (13 percent, compared with 4 percent of Baby Boomers ages 56-65 and 5 percent of seniors 66 and up) or moderate (40 percent vs. 31 percent and 34 percent, respectively).

Older investors either retired or near-retirement tend to be more conservative or moderate in their investments. A majority (53 percent of Baby Boomers and 55 percent of seniors) report that it is more important to protect their principal than grow their investments, compared with 43 percent of their younger counterparts.

But perhaps in a bid to regain what they lost in the recession, ultra-wealthy Baby Boomers and seniors surveyed by Spectrem’s Millionaire Corner were more likely to identify their risk tolerance as aggressive (53 percent and 59 percent, respectively, vs, 44 percent of the youngest households). Baby Boomers were significantly more likely to brand their risk tolerance as most aggressive (13 percent vs. 3 percent of the youngest respondents and 2 percent of seniors).



About the Author


Donald Liebenson

dliebenson@millionairecorner.com

Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.  

A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.