SOURCE: Spectrem Group

Spectrem Group

April 06, 2017 08:00 ET

New Spectrem Study of Affluent Investors Reveals Broad Array of Attitudes on Important Financial Issues including Social Security, Taxes, Student Loan Forgiveness and More

CHICAGO, IL--(Marketwired - April 06, 2017) - In Spectrem's new research study, Financial Behaviors and the Investor's Mindset, affluent investors share unique perspectives about the factors that contributed most to their financial success. It also reveals attitudes about a broad array of financial issues that may affect their future retirement and current lifestyle decisions.

The report is based on surveys with investors whose household net worth ranges from $100,000 (not including primary residence) all the way up to those with a net worth up to $25 million. The study asks investors about their core values, financial plans for their children and grandchildren, and the factors that allowed them to become wealthy in the first place.

For the first time, the study also analyzes investor attitudes toward Social Security, student loan forgiveness proposals and tax policies, all of which are evolving under the new Trump administration.

Among the report's highlights include:

  • The wealthiest investors are more likely to credit factors outside of their control for their wealth creation. Among Ultra High Net Worth investors (with a net worth between $5 million and $25 million), 58 percent cite being in the right place at the right time as the primary reason for their wealth.
  • Unsurprisingly, the wealthiest investors are also the most optimistic. Among Mass Affluent investors -- households with a net worth up to $1 million -- slightly more than half (53 percent) say they are better off than they were a year ago. This, compared with 61 percent of Millionaire households and fully two-thirds (67 percent) of UHNW investors who believe the same.
  • Most UHNW investors believe the age for receiving full Social Security benefits should be raised, and a significant percentage would not mind seeing the age raised by several years. Additionally, more than half of all Mass Affluent investors (56 percent) believe that retirees with $300,000 or more of annual income should not receive Social Security benefits at all.
  • Even the wealthiest UHNW investors report being concerned about having enough money to last them through the rest of their lives. Twenty percent of UHNW Professionals and Senior Corporate Executives report that concern. UHNW Professionals also worry about being able to retire when they want to.
  • A majority of investors across all wealth segments do not believe the federal government should forgive student loan debt. The wealthier the investor, the more they believe student loans should be repaid.

"This new study reveals ways in which affluent investors have quite distinct perspectives and concerns about key financial issues, depending upon their age and level of wealth. The best advisors can use this information to customize investment recommendations to fit the unique financial concerns and personal situations of their clients," said Spectrem President George H. Walper Jr. "Our study helps provide important context about the underlying motivations and distinguishing factors that influence the financial decisions of these affluent investors."

Additional information on the three wealth segment reports, as well as information about other Spectrem studies, can be found at Spectrem.com.

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.

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