Hard knocks for the high-net-worth
Most affluent investors feel that they are in worse financial shape now than they were one year ago, according to a new survey from Phoenix Marketing International.
Most affluent investors feel that they are in worse financial shape now than they were one year ago, according to a new survey from Phoenix Marketing International.
“We knew the [economic] downturn would have an impact, but I didn’t think it would be more than half who said their financial condition was worse,” said Kristina Terzieva, product manager at Phoenix of Rhinebeck, N.Y. “I was surprised by the current sentiment.”
Fully 54% of affluent investors said that they were worse off than they were one year earlier. In addition, 30% said their financial condition was about the same, while 16% said it was better.
Only 32% said they thought their financial condition would improve in a year. Fully 42% said they expected their financial state to remain the same, and 26% said they expected it to be worse.
As a result, 36% of respondents reported that they had met with a financial adviser, and 21% said they expected to meet with an adviser within the next 30 days.
When asked about changes to their investments, 34% of respondents said they had already chosen mutual funds as opposed to individual securities, and 12% said they planned to follow suit in the next 30 days.
A full 25% of respondents had already increased their allocation to certificates of deposit, and 13% said they planned to do so.
In addition, 18% of respondents said they had already dispersed their accounts among several brokerage firms to maximize the Federal Deposit Insurance Corp. insurance coverage, and 7% planned to do so.
The firm conducted the national online survey in May and June of 757 affluent investors, who ranged from 35 to 64, with at least $100,000 in household income and investible assets.
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