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City:Atlanta

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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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Are You Wealthy?

Investors see themselves as wealthy, their parents not so much. 

| BY Kent McDill

Are you wealthy?

That simple three-word question can produce a variety of responses, and it can include a variety of responses from people who are at the same wealth level.

It’s a question Spectrem asked affluent investors in its quarterly wealth segmentation series study Financial Behaviors and the Investor’s Mindset. In some ways, the responses were sensible, but in some ways they were surprising.

Let’s start with the people who clearly are wealthy, the Ultra High Net Worth investors with a net worth between $5 million and $25 million. While it would seem to be a question with an obvious answer, it is not as clear-cut as it might seem.

Asked to place their wealth status on a scale from 0-to-100, the UHNW investors placed themselves on average at 74.00. That segment was segmented further, and the investors with a net worth between $15 million and $25 million rated themselves at 81.65.

Investors were also asked to rate their parents’ wealth status and the wealth status of their spouse’s parents. Those numbers came in at 44.41 and 42.93, well below the wealth status of the investor, suggesting they all came from humble beginnings.

What’s even more interesting about the report on the wealth status of parents is that the younger UHNW investors have a higher opinion of their parents’ financial situation than older investors. While the Millennial and Gen X investors under the age of 52 placed themselves at 72.86 on the 0-to-100 scale, they placed their parents at 54.61 and their spouse’s parents at 53.11, both well above the average.

As expected, Millionaire investors with a net worth between $1 million and $5 million saw themselves well below the UHNW investors on the wealth scale, averaging out at 64.43, still well above an average score of 50. Again, those investors saw their parents and spouse’s parents as well below them on the wealth status scale, 44.13 and 40.58. (Investors almost always rate their spouse’s parents as less well-off than their own.)

There was very little range of answers among Millionaires based on age, although again the younger Millionaires rated their parents and spouse’s parents much higher than the older investors.

Among Mass Affluent investors with a net worth between $100,000 and $1 million, the rating of wealth was at 54.68, with their own parents at 47.69 and their spouse’s parents at 41.05. In this segment, the older investors, those from the World War II generation, rated themselves the highest at 59.65 and also had their parents’ ratings at the lowest, at 40.76 for their own parents and 38.40 for their spouse’s parents.

 



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.

 


 

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