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High Net Worth Investors Have Concerns, Too Author: Katherine Dordick

What are the top concerns of Ultra High Net Worth investors (with $5-$25 million in investable assets, not including primary residence)? They are both national and personal in scope. Ultra High Net Worth investors are more concerned with the political environment in 2012 than in 2011, according to a recent study by Millionaire Corner. Eighty percent of Ultra High Net Worth investors are concerned about the current political environment , compared to 73 percent in 2011. The national debt, a hot topic in politics, is another top concern for Ultra High Net Worth investors. This concern has remained the top national concern for Ultra High Net Worth investors in both 2011 and 2012 at 82 percent. Younger Ultra High Net Worth investors (under 45) are much less concerned with the national debt, with only 65 percent of younger Ultra High Net Worth investors listing that as a primary concern, compared to 82 percent of other Ultra High Net Worth investors. They are more concerned with a potential increase in interest rates, at 53 percent compared to 34 percent of the rest of the Ultra High Net Worth investors. Ultra High Net Worth are focused on family. The financial situation of children and grandchildren top the list at 66 percent, a 9 percent increase over 2011. Concerns over the health of a spouse have increased 6 percent from 2011 to 65 percent. Being able to maintain their current financial position has seen the greatest jump since 2011. Sixty-one percent of Ultra High Net Worth investors are concerned about this, which is a 17 percent increase over 2011. This may due to the feeling that the national concerns may have an impact over being able to maintain their wealth. Even Ultra High Net Worth investors are concerned about financing their children’s education. This concern is up to 25 percent from 11 percent in 2011. Another study conducted by Millionaire Corner in April 2012 shows that 37 percent of investors with over $1 million in net worth are currently contributing financially to the education of a child, and 19 percent are contributing to the education of a grandchild. Three-fourths of High Net Worth investors with over $1 million in net worth are contributing between 75 percent and 100 percent of the cost of their child’s education and 13 percent are taking care of 100 percent of their grandchildren’s education. Responsibility for aging parents and potential increases in interest rates are less of a concern for Ultra High Net Worth investors. for 2012. Just over one-third (36 percent) said they are concerned about caring for their aging parents. This is down 10 percent from last year. Potential interest rate increases are a concern for 34 percent of Ultra High Net Worth investors, down 11 percent from 2011.

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