The slow pace of the economic recovery continues to plague wealthy investors. According to a new report from the Spectrem Group, a strategic consulting firm specializing in the affluent and retirement markets, 80 percent of millionaires cite worries over the economy.
The research states that concerns over the sluggish economy are worsening, with only 70 percent of those surveyed stating economic concerns in last year’s report.
Other key findings from the report include:
- 81 percent of mass affluent investors, whose net worth is between $100,000 and $1 million, cited (the economy) as a concern in the first quarter versus 74% in 2011's first quarter.
- Only ultra high net worth investors, with at least $5 million in assets, didn't list the slow pace of the recovery as their chief concern.
- 82 percent of those wealthiest investors chose the national debt as their biggest worry. Other worries for the ultra wealthy: the contentious political environment (listed by 80 percent). And, finally, the economy, with 77 percent of ultra high net worth investors naming it as a concern, up from 69% a year ago.
"With the unemployment rate remaining high, the continuing volatility in the stock market and gasoline prices, and a high-stakes presidential election looming, wealthy investors are anxious about the country's outlook," says George H. Walper, Jr., president of Spectrem Group. "You can expect a strong turnout among these voters."
Finally, potential tax increases are another topic that caused concern with those surveyed.
- 70 percent of ultra high net worth investors worry over taxes.
- 65 percent of millionaire investors, with net worth of $1 million to $5 million.
- 64 percent of mass affluent investors.
However, not all the news is bad according to Walper: “Overall, wealthy investors are more confident about their own finances, with roughly half optimistic that their personal financial situation will improve in 2012.”
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