Every 18 months, Spectrem takes the pulse of the most affluent American investors in its study The $25 Million Plus Investor. The financial and personal attitudes and concerns of those investors are studied, along with demographic information about who they are and how they got to their current wealth level.
There are 132,000 Americans in the $25 Million Plus category based on net worth and Not Including Primary Residence. That is the highest total of people in that segment in the country‘s history.
The $25 Million Plus households are mostly working households, and many of the investors in the group have no plans to retire. Almost 75 percent work more than 40 hours per week, and only 22 percent are retired.
The wealthiest investors have a significant and complicated attitude toward the next generation in their family. They want to ensure that their children and grandchildren are taken care of financially, but they do not want to stunt their work ethic in the process.
In many cases, they want the financial advisors they work with to work with their children and grandchildren, but there is a mixed response as to what age is best to introduce them to each other, and there is concern that financial advisors of today will not be able to relate to investors of the next generation.
In terms of their own money, most of the wealthiest investors feel they can handle the basic investment functions by themselves and use financial advisors only when a unique or particularly complicated investment opportunity arises. A significant percentage of the $25 Million Plus crowd has a large amount of money invested in alternative funds like hedge funds, but they also have strong cash positions.
While the wealthiest investors tend to stay in the middle in regards to risk, balancing between moderate to slightly aggressive, they do expect a higher rate of return on investment than investors with lower net worth. They are also more interested in growing their wealth than just protecting it.
Most wealthy households do make charitable donations, and many of those donations are to educational or religious organizations. Charitable donations and vacations are among the largest expenditures for the $25 Million Plus investor.
The $25 Million Plus Investor include details on how they are using social media and how social media use impacts their relationship with advisors. It also details the way age affects an investor’s plans for investing.
For more information on the $25 Million Plus Investor, click here