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Asset Preservation Advisors


State: GA

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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What Factors are Influencing Affluent Households' Investment Plans?

New Millionaire Corner survey finds the election year political climate having more of an impact

| BY Donald Liebenson

While Affluent investors keep cognizant of stock market conditions and the economic environment, they are increasingly focused on how the political climate will affect their investment plans, according to a new survey conducted by Millionaire Corner.

Only 12 percent of Affluent households said that the political climate—the perception of whether our elected officials will or will not work together to fix the country’s economy—is the one factor that most affects their investment plans today. But this is a seven percentage point increase over April, when we last asked this question.

This is not surprising in an election year. The recent Supreme Court decision not to repeal President Obama’s healthcare legislation ratcheted up rhetoric between Democratic and Republican lawmakers.  In addition, the “fiscal cliff” debate also escalated this month, as Federal Reserve Chairman Ben Bernanke urged lawmakers to resolve this issue “sooner rather than later,” while Democratic Sen. Patty Murray, threw down a gauntlet. “If Republicans won’t work with us on a balanced approach, we are not going to get a deal,” she stated.  Republican Senate leader Mitch McConnell countered on the Senate floor, “What the Democrats are proposing today is an entirely avoidable, high-stakes game of chicken.”

Should lawmakers not be able to reach an agreement before the end of the year deadline, the Bush-era tax cuts will expire for all wealth levels and $1.2 trillion of defense and domestic spending cuts will take effect. Some analysts caution that the county could dip back into a recession.

But more Affluent investors said that stock market conditions was the primary factor influencing their investment plans.  Eighty percent of investment strategists and money managers surveyed recently by CNNMoney said that the next several months could be just as volatile for the stock market if there is a repeat of last summer’s bruising debt ceiling debate.

The inextricably linked economic environment was the key investment factor for 20 percent of Affluent respondents.

Retirement, an increasing concern in a prolonged economic downturn, was the one factor most affecting investment plans for 12 percent, virtually unchanged since last April. Just 5 percent said that household income most impacted their investment plans.


About the Author

Donald Liebenson


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.