8 Issues Weighing On Affluent Investors' Minds Right Now<br><br>
The more advisors know about these current and potential clients, the better they can serve them and bolster their assets under management.
These highly coveted clients, defined as adults aged 18 years of age or older living in households with at least $100,000 in annual household income, account for 25% (roughly 59 million) of the U.S. population.
Here's a closer look at what wealth managers need to know about this key demographic and what issues and concerns they?re grappling with today.
Sources: Stephen Kraus, chief insights officer of the Audience Measurement Group of Ipsos MediaCT, who also helps lead the Mendelsohn Affluent Survey. Spectrem Group?s June Affluent Investor Confidence Index.
1. Who Are These "Affluents" And Why Do They Matter?<br><br>
They're young, old and every age in between. Some are working parents with kids. Some are single without kids. Some are single parents. Some are closing in on retirement. Some are working at their first job out of college. In other words, they span the whole spectrum but, individually, have very disparate needs and investment concerns and goals.
2. Many Affluent Investors Are a Little Nervous Right Now<br><br>
That's down 8% from the same survey in May and represents the lowest level of affluent investor confidence so far in 2012.
3. And Some Are Absolutely Spooked<br><br>
In a similar survey conducted last month by Chicago-based Spectrem Group, wealth investors collectively said they are less confident about their day-to-day financial situation (income, assets and the overall economic picture) today than they were in December.
4. So What's Freaking Them Out?<br><br>
One respondent to the Mendelsohn survey said "[high] jobless numbers may be permanent" things seem stagnant and kind of a low new normal.
Then there?s the European debt crisis. Twenty-eight percent of ?ultra affluents? said they?ve even gone so far as to change some investment decisions and allocations as a result of what?s going on overseas.
Not surprisingly, the November election is also weighing on these affluent investors? minds. Spectrem Group reports that the number of investors who reported being most concerned about the political climate more than doubled from April, rising 7 percentage points to 12% in June.
5. What About Gold: Isn't It Everyone's Favorite Safe Haven?<br><br>
6. What Are Affluent Investors Excited About?<br><br>
Among "ultra affluents," 57% said they were enthusiastic about real estate, outpacing their optimism for both gold and equities.
7. Cash Is King Again<br><br>
Bond mutual funds fell by 1.3 points to 7.3 points, the lowest reading in more than year while stock mutual funds pulled back 0.6 points to 31 points.