From Cash to Equities: A Breakdown of the Portfolios of Wealthy Households


What do the portfolios of wealthy households look like as we enter 2023? Investable assets make up the largest share of the portfolios, however, this varies based upon wealth and age. Not surprisingly, as wealth and age increase, the amount of assets that are investable tends to increase.

Not surprisingly, the principal residence, retirement savings and insurance and annuities represent a portion of total assets.

Reviewing the breakout of the investable assets provides some interesting insights. Fourteen percent of total assets are held in cash. This is consistent with the last 5 years, however, Spectrem’s historical research indicates that this percentage was lower in the century. Equities represent the largest percentage of investable assets. As wealth and age decrease, so does the percentage of equities owned by individuals.

Overall, total asset allocation and portfolios are similar to recent years and have not been impacted by the recessionary environment. In fact, when compared to a year ago, the overall mean value of most equity investments has increased.

Financial advisors need to continue to consult with their clients during the current market uncertainty to ensure they feel comfortable with their current asset allocation.