Featured Advisor
I began my career as a financial advisor with the AYCO Corporation. I then served eleven years with a Big four public accounting firm where I provided counseling services to corporate executives and other high net worth individuals. I founded Trinity Financial Advisors, LLC in late 1999. I am a registered CERTIFIED FINANCIAL PLANNER™ PROFESSIONAL and a NAPFA® Registered Financial Advisor. I am also a member of the AICPA, FPA and IMCA.
MY PRACTICE...
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The Ultra High Net Worth plan to be more active investors in 2012, according to a recent wealth level study conducted by Millionaire Corner.
Six-in-10 of these investors with a net worth between $5 million and $24.9 million (not including primary residence) said they will be investing in equities, up from 52 percent in 2010. Equities, including stocks or stock mutual funds, are especially attractive to the UHNW’s wealthier segments. Nearly three-quarters (74 percent) of those with between $10 million and $14.9 million said they would be investing or increasing their investments in equities, while 69 percent of those with between $15 million and $25 million said the same.
The UHNW also expect to increase their investment in other investment instruments such as hedge funds and REITs (18 percent, up from 7 percent), international investments (35 percent, an increase of two percentage points) and real estate (18 percent from 9 percent).
UHNW investors, though are also playing it safer, with 51 percent planning to invest or increase their investments in cash (up from 35 percent in 2010) and 47 percent (up from 31 percent) opting for fixed income instruments such as bonds or bond mutual funds.
“Investors are expressing more willingness to get back into the market, with some investors dipping their toe in the water by investing more in cash and fixed income,” observed Kathy Dordick, business strategy and development for Millionaire Corner.
Over the course of the prolonged economic downturn, Ultra High Net Worth investors have become more self-directed, making their own investment decisions without the assistance of an advisor. Twenty-seven percent of those we surveyed identify themselves as self-directed, up from 21 percent in 2010.
In what is perhaps an indication of how much stock they put in the ratings agency, a majority (65 percent) said that the unprecedented drop in the United States credit rating last August would not impact the way they invest. The exception was investors under the age of 55, more than half (52 percent) of which said that it would.
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.
