Perhaps extremely wealthy individuals do not have to worry about money as much as the next guy, but they do share concerns with others about issues that affect all Americans.
Spectrem’s Wealth Segmentation Series study Financial Behaviors on the Investor’s Mindset asked Ultra High Net Worth investors with a net worth between $5 million and $25 million what their national concerns were. In the case of some issues, the concern is nearly universal.
By far, the most consistent national concern is with the political environment in the country, as the divide between Republican and Democrat grows to coincide with the divide between conservative and liberal Americans. Eighty-seven percent of UHNW investors said the political environment is a concern of theirs, only slightly down from last year’s 88 percent.
Interestingly, the concern over the government accomplishing anything has lessened. Only 77 percent of UHNW investors listed government gridlock as a concern, well below last year’s 84 percent.
There is an increase in the concern over increases: tax increases, that is. Seventy-seven percent of UHNW investors are concerned about tax increases, up from 72 percent one year ago.
Other concerns reported by at least 70 percent of UHNW investors includes the national debt (74 percent), terrorism (73 percent) and the federal deficit (70 percent). The concern over terrorism has grown by 7 percent while the concern over the federal deficit has dropped 5 percent.
Regarding financials, there has been a slight increase in concern over an increase in interest rates (51 percent from 49 percent) and low savings interest rates (55 percent from 51 percent) but there has been a steep decline in concern over inflation (53 percent from 65 percent).
Young UHNW investors (under the age of 49, are far more concerned with an increase in interest rates (69 percent to 51 percent overall). They are far less concerned than the average UHNW investor about the political environment in the country (65 percent to 87 percent).
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