Wealthy investors are often asked to identify their overall strategy for their assets based on the concepts of liquidity, longevity or legacy.  Liquidity is generally focused on the family’s spending needs for the next three years.  Longevity is the allocation of one’s assets to meet their needs throughout their lifetime, and Legacy is the desire to leave assets for one’s heirs and/or causes that they might care about.

Spectrem Group recently surveyed investors with more than $25 million of net worth and asked about their personal allocation of assets in relationship to the above-stated goals.  Overall investors split their assets fairly evenly between these categories with 36% focused on Liquidity, 33% on Longevity and 31% was meant for a Legacy.  There were differences, however, based on age and wealth.

 

As you can see above, not surprisingly, older investors allocate more of their wealth towards Legacy while younger investors are more focused on Liquidity.  It’s interesting to note that the wealthiest investors are more focused on Liquidity than those with less wealth.

These goals continue to provide an important path for wealthy investors to consider as they contemplate their overall goals and asset allocation.