Wealthiest feeling the pinch, survey says
Nearly three-quarters of millionaires surveyed by the Phoenix Cos. said they feel less wealthy than last year, and their pessimism about the economy is at levels not seen since 2001.
High-net-worth clients have entered an era of “negative wealth,” according to the annual Phoenix Wealth Survey, released today.
The survey respondents had a net worth of $1 million or more, not including their primary residence.
Nearly three-quarters of them said they felt less wealthy than last year.
One-third of those surveyed said they expect the country to remain in a prolonged economic downturn for the next two years.
In addition, half of the respondents said they have become more risk averse in the last 12 months.
Advisers are likely to offer more “product solutions that merge investment and insurance features,” said Walter Zultowski, senior vice president of research for the Hartford, Conn.-based Phoenix Cos. Inc.
“One of the lessons that I believe is being learned today is that in a severe financial downturn, asset allocation is not enough to protect one’s assets,” he said.
The Phoenix Wealth Survey included online interviews conducted in late January and February by Harris Interactive Inc. of Rochester, N.Y., with more than 1,700 randomly selected high-net-worth individuals around the country.
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