Have you ever played golf behind a foursome of lawyers? Do you believe all corporate executives shop at the same automobile dealership and buy their cars at the same time?
Wealthy investors have money to spend and do so, some more than others. They spend their money in different ways on different items. But our research shows there are comparisons to be made between purchases made by affluent investors based on their occupation.
Our whitepaper Spending Choices Among Wealthy Investors analyzes the spending habits of affluent consumers over a period of 12 months and finds patterns in the purchases made by investors among their different occupations.
For purposes of the whitepaper, investors were segmented into Professionals (lawyers, doctors, dentists, etc.), Senior Corporate Executives, Business Owners and Corporate Managers.
“Our research related to occupation indicates that investors in different lines of work often think alike,’’ said Spectrem president George H. Walper Jr. “They probably don’t shop together, but they often share interests that would cause them to have similar purchasing habits.”
The investors were also segmented based on net worth, and Ultra High Net Worth investors with a net worth between $5 million and $25 million make definite purchasing decisions.
In terms of automobiles, a purchase that indicates wealth and stature in America, 25 percent of Managers spent $25,000 or more on vehicles in 2015. The low end was Business Owners, of which 17 percent spent that much. Almost 10 percent of all occupations spent at least $50,000 on cars last year.
Successful people enjoy their time away from work, and Professionals and Senior Corporate Executives lead the charge. Among UHNW investors, 23 percent of Senior Corporate Executives and 22 percent of Professionals spent at least $25,000 on vacations or leisure travel in 2015. Only 11 percent of Managers did so.
Interestingly, UHNW investors do not spend money on club memberships. Professionals lead the way with 11 percent spending at least $5,000 a year on club memberships (country club, health club, etc.) but only 6 percent of managers did so. More than 70 percent of Business Owners and Managers spent nothing on club memberships last year.
They also are not big in entertainment spending. Twenty percent of Senior Corporate Executives and 19 percent of Business Owners spent at least $5,000 on tickets to the symphony and ballet, but only 8 percent of Managers did so. Surprisingly, sports tickets did not take up much of their purchasing, as only 14 percent of Professionals spent at least $5,000 on game tickets and only 7 percent of Senior Corporate Executives did so.
Where spending does take place is at home. Sixty-three percent of Professionals spent at least $5,000 on home improvement and 23 percent spent at least $15,000. Fifty percent of Business Owners spent $5,000 and 27 percent spent at least $15,000 on home improvement.
Wealthy investors also invest in others with charitable contributions. Forty percent of Professionals gave at least $10,000 to charity.
Surprisingly, very little money was spent on collectibles. Professionals led the way as 11 percent spent at least $5.000 on those favored items, but only 6 percent of Managers spent $5,000 on collectibles.