The country's rising debt and family issues top the national and personal concerns of Ultra High Net Worth investors (with $5-$25 million in investable assets, not including primary residence), according to a first quarter wealth level study conducted by Millionaire Corner.
The national debt, one of the most divisive issues in the upcoming presidential race, is, for the second consecutive year, the primary concern for 82 percent of Ultra High Net Worth investors.
In this election year, with increasingly partisan debates over issues such as the debt (a repeat of last summer’s bruising battle over increasing the debt ceiling is expected later this year) and, most recently, health care, more Ultra High Net Worth investors are concerned about the stormy political environment, and the inability of lawmakers to work together. Eighty percent of respondents said they are concerned about the current political environment , up from 73 percent last year.
Closer to home, Ultra High Net Worth investors are most focused on family. Two-thirds are concerned about the financial situation of their children and grandchildren, a 9 percent increase over 2011. Sixty-five percent are concerned about the health of a spouse, up from 59 percent last year.
College costs, which have risen 15 percent in the last two years, according to the Department of Education, are a concern even in Ultra High Net Worth households, where one-quarter of respondents ranked this as a primary personal concern, up from 11 percent last year. A separate study conducted in April by Millionaire Corner found that 37 percent of investors with over $1 million in net worth are currently contributing financially to the education of a child, while 19 percent are contributing to the education of a grandchild. Three-fourths of High Net Worth investors with over $1 million in net worth are contributing between 75 percent and 100 percent of the cost of their child’s education and 13 percent are taking care of 100 percent of their grandchildren’s education.
Responsibility for aging parents and potential increases in interest rates are less of a concern for Ultra High Net Worth investors. Thirty-six percent, down from 46 percent last year, listed this as a personal concern.
But there is a dramatic increase in the percentage of Ultra High Net Worth investors who say they are most concerned about maintaining their current financial position. Sixty-one percent, up from 44 percent in 2011, said this was their biggest concern. This may be an extension of their concerns over national issues which will impact their financial situation and goals.