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.

Latest News

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

Raymond James hauls Ameriprise advisors managing $1.1B in New York
Raymond James hauls Ameriprise advisors managing $1.1B in New York

Elsewhere, Sanctuary Wealth recently attracted a $225 million team from Edward Jones in Colorado.

Cetera debuts new alts allocation portfolios for accredited investors
Cetera debuts new alts allocation portfolios for accredited investors

The giant hybrid RIA is elevating its appeal to advisors with a curated suite of alternative investment models, offering exposure to private equity, private credit, and real estate.

Steward Partners expands in California with $1.1 billion RIA acquisition
Steward Partners expands in California with $1.1 billion RIA acquisition

The $40 billion RIA firm's latest West Coast deal brings a veteran with over 25 years of experience to its legacy division for succession-focused advisors.

Invictus managers withhold $10M, trigger ERISA asset showdown
Invictus managers withhold $10M, trigger ERISA asset showdown

Invictus fund managers allegedly kept $10 million in plan assets after removal, setting off a legal fight that raises red flags for wealth firms.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.