Financial knowledge highest coveted by the highest net worth, according to a Spectrem Group study. More than half rate their financial knowledge as “extremely important” to them, while nearly 40 percent say it’s important. On the other hand, about a quarter of investors with less than $100,000 say their financial knowledge is “extremely important” while 47 percent say it is “important” and about 23 percent say it is “somewhat important.”
Along with using a financial advisor, the highest net worth are most likely to conduct their own research. More than seventy percent (73 percent) of Millionaires say they rely on company reports, fund prospectus and expert opinions when making investment decisions. In contrast, about 55 percent of investors with less than $100,000 conduct independent research.
Accordingly, the highest net worth investors are more likely than less wealthy investors to show a passion for investing as something they would not want to give up (67 percent vs. 58 percent of high net worth respondents overall). Also, 62 percent said they like to be actively involved in the day-to-day management of their investments, compared with 57 percent of respondents overall).
Where is this financial knowledge coming from? The largest percentage of the wealthiest high net worth investors checkup more frequently with a financial advisor. More than a third (35 percent) of the highest net worth identify themselves as advisor-assisted investors, 28 percent of high net worth investors identify themselves as such.
Twenty percent (vs. 14 percent of respondents overall) are advisor-dependent, meaning that an advisor makes all investment decisions.
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