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Data & Research May 7, 2008
High-Net-Worth Rely on Do-it-Yourself Advising
Forty percent of high-net-worth individuals are concerned with the risk of not being able to live comfortably on their available level of income in retirement, said a survey from Phoenix.
Reported by Ellie Behling
Half of those surveyed said they worried about inflation eroding the value of their income (up from 42% last year), according to the survey from The Phoenix Companies, Inc., monitoring the attitudes and financial behavior of high-net-worth individuals in the U.S.
The mortgage crisis might not have had as much of an effect on high-net-worth individuals, as the majority (60%) surveyed said they do not consider home equity as part of their retirement savings, said the report of the results. Nearly half (49%) of high-net-worth individuals see real estate as a safer investment than the stock market.
DIY Advising
The survey indicates a trend toward do-it-yourself advising, as 50% of high-net-worth respondents said they rarely seek professional advice when making a major financial decision (up from 45% last year), and 41% do not have a primary financial adviser.
When asked about their financial decisionmaking, 29% said they “make all their financial decisions completely on their own with little help from anyone,’ the survey said.
Growing Pessimism
Half of those surveyed expressed pessimism in regards to the economy for the next one to two years—a 20% increase from last year, the results show. Thirty-six percent expressed optimism and 14% were neutral about the economy.
The report pointed out that the survey—collected in February and March—was conducted before the Bear Stearns meltdown.
Harris Interactive collected responses from 1,900 randomly selected individuals with net worth of $1 million or more.