The affluent more upbeat about their finances – but their heirs may not be

Only about a quarter of respondents said they “strongly agree” or “agree” that the recession is over, and another quarter said the U.S. will remain in a prolonged economic downturn for the next two years
APR 18, 2010
High-net-worth individuals are feeling somewhat better about their finances — but they still aren’t as confident as they were before the financial crisis, according to an online survey conducted in the first quarter. When asked about their perception of their current financial situation, just over half of wealthy individuals surveyed by Harris Interactive Inc. said they feel less wealthy now than they did a year ago. That’s an improvement, though, from a year earlier, when about three-quarters of survey respondents said they felt less wealthy. “This year’s survey found that concerns have moderated and optimism has increased regarding the nation’s economy over the next one to two years,” said Walter H. Zultowski, senior adviser for The Phoenix Cos. Inc., which sponsored the survey. Still, some new questions added to the survey this year found that investors are still leery about the pace of economic recovery. Only about a quarter of respondents said they “strongly agree” or “agree” that the recession is over, and another quarter said the U.S. will remain in a prolonged economic downturn for the next two years. Another 13% said they feel that “the worst is still yet to come.” Indeed, the financial crisis has left some permanent marks on wealthy people’s estate plans. Almost half, 46% of respondents, said that as a result of the financial crisis, they will not be able to leave their heirs as much money as they had originally planned. One plus for financial advisers is that more respondents are seeking advice. Seventy-nine percent of respondents said they receive professional financial advice on a regular basis, up from 73% last year. The all-time high for this question was 82%, reached in 2003. The Phoenix survey captured responses from 1,835 U.S. residents, all of whom were 18 or older, with a net worth of $1 million or more, not including any debt and the value of their primary home. The survey was conducted online between Feb. 1 and March 1.

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