Taxes are on the Minds of Wealthy Investors


In Spectrem’s study of the wealthiest investors – 2014 $25 Million Plus investor – 45 percent of investors are investing in tax-free bonds in order to decrease their tax burden. Similarly, 45 percent are meeting, or have meetings scheduled, with tax attorneys or financial advisors to determine how best to attack and decrease their tax bill.

Older wealthy investors are most active when it comes to dealing with their tax bite. Fifty-seven percent of $25 Million Plus investors over the age of 65 are buying tax-free bonds, and 64 percent are revising their estate plans to consider tax implications. Fifty-nine percent have met with their tax advisors or have a meeting scheduled.

Investors under the age of 56 are less likely to be investing in tax-free bonds (only 40 percent) and only 37 percent have met with their tax advisor, or have plans to do so.

More than one-third (34 percent) of all $25 Million Plus investors are increasing their charitable contributions in order to reduce their tax burden. That maneuver is more popular among the older investors (41 percent) than the younger ones (34 percent). Also, 53 percent of corporate executives are increasing their charitable contributions for tax purposes.

Almost one-quarter of all investors are considering the drastic move of moving to another state, where the tax burden is not as high as their current home state. That includes almost one-third (32 percent) all investors under the age of 56, and 30 percent of all investors with a net worth of at least $125 million.

Eighteen percent of all investors have purchased tax-advantaged life insurance.

Among national financial concerns, 65 percent of all $25 million Plus investors consider taxes to be a concern.



For more information on the Wealthiest Investors, click here