High-Net-Worth Individuals Are Hands-On in Money Management

More than two-thirds of the very rich, with a net worth of at least $25 million, are actively involved in the day-to-day management of their investments.
Reported by Jill Cornfield

According to research from Spectrem Group, 71%, enjoy doing at least some of their own investing and do not want to give it up.

While all these wealthy investors use financial advisers, nearly six out of 10, or 59%, also spend at least six hours a week working on investments themselves. Other amounts of time spent working on investments are:

  • Less than one hour: 10%
  • 1 to 5 hours: 31%
  • 6 to 10 hours: 23%
  • 11 to 20 hours: 16%
  • 20 to 25 hours: 6%
  • 26 to 30 hours: 5%
  • 31 to 35 hours: 4%
  • More than 35 hours: 6%

Most of these investors, 73%, cite their advisers as a primary source of financial information—more than any other source. But 59% of the very rich also gather financial information from daily financial press, 38% from websites other than those of their advisers or providers, 38% from cable news and 34% from weekly financial press.

Just 107,000 U.S. households had at least $25 million in net worth at the end of 2011. Fewer than one-third inherited their wealth, Spectrem Group found, while the largest group, 27%, are business owners. More than half are still working and another 21% are semi-retired. With a mean age of 60 and 38% younger than 55, these wealthiest investors are also younger on average than ultra-high-net-worth investors, with net worth between $5 million and $25 million, and a mean age of 67, and millionaire investors, with net worth of $1 million to $5 million and a mean age of 63.

 

Tags
Investing, Practice Mgmt, Wealth Management,
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