CHICAGO, April 28, 2021– Billions of dollars in anticipated tax hikes on personal income and estates proposed by the Biden Administration, along with rising income and property taxes in some states, are causing consternation among some of America’s wealthiest investors, according to Spectrem’s $25 Million Plus Investor Report. More than half of those surveyed indicate they are considering moving their residence to states with low-or-no income taxes.
The report, which is the only continual survey that has tracked the $25MM+ investment sector since 2007, fielded data from those with over $25 million in Net Worth, not including the value of their primary residence (NIPR).
“In the current environment with public sentiment in favor of massive tax increases to finance a progressive agenda, wealthy households will be relying more than ever on their advisors to help them maintain their financial position,” said George Walper, CEO of Spectrem Group. “As growing number of wealthy Baby Boomers are beginning to retire, advisors will need to ensure they are playing a critical role in creating a pathway for smooth wealth transfer to younger generations.”
Other insights include:
· Wealthy investors use multiple advisors and expect those advisors to work together to successfully serve their needs. Advisors should expect expectations for service levels among the wealthiest of their clients to continue to rise.
· Inheritance is becoming a growing factor in obtaining wealth in America; In 2020, nearly two-thirds (66 percent) indicate inheritance was a factor in obtaining their wealth compared with less than a third in 2012
· 59% of investors believe their children and grandchildren should meet their financial advisor by the age of 25.
Additional details from the report can be found here: https://spectrem.com/Content_Product/25-million-plus-investors-2020.aspx
About Spectrem Group: Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.