Personal concerns have started to outweigh financial concerns among the wealthiest U.S. investors, with $5 million or more in net worth not including their primary residence, according to Spectrem Group’s 2013 UHNW Investor: Changing Investor Attitudes and Behaviors report . Buoyed by the rising stock market, more than two-thirds, or 64%, of Ultra High Net Worth (UHNW) Investors say their financial situation today is better than a year ago, and nearly as many, 58%, expect their financial position to be stronger a year from now.
As a result, personal issues have moved to the fore for many UHNW Investors. Their chief worries are:
- Spouse’s health—63%
- Children and grandchildren’s financial future—57%
- Own health—56%
In fourth place, maintaining their current financial position is an issue for 55% of these investors. With three out of four UHNW Investors retired, 46% also worry about spending their final years in a care facility.
“Personal concerns, including health and aging, are driving investment decisions for Ultra High Net Worth Investors more than in the past,” saysGeorge H. Walper Jr., President of Spectrem Group. “With the pressure to save for retirement behind most of them, the Ultra High Net Worth are focusing on integrating lifestyle and personal concerns into their financial and estate planning.”
Other key points from the research:
- While their risk tolerance is rising, UHNW Investors are not convinced the recovery is real. Fewer than half, or 45%, are willing to take significant investment risk on a portion of their investments in order earn a higher return while 35% would prefer a guaranteed rate of return.
- More than four out of five cite worries about government gridlock and the federal deficit.
- Only 11% support the 39% tax rate recently imposed on the highest earners.
- Just 19% cite social responsibility as important in making an investment decision.
