In April of 2007, the U.S. Trust Survey of Affluent Americans was prepared for the United States Trust Company which is a wholly owned subsidiary of the Charles Schwab Corporation. Gregg and Lisa Whitney think it is important for their clients to follow the attitudes and trends of wealthy Americans on a wide variety of topics as most of their clients hold real estate as a part of their investment portfolio.

This article is Part 9 of an interesting nine part series on the super high net worth American. Gregg and Lisa Whitney are pleased to provide this information for you

Their partnership, also known as Whitney and Associates, has a proven, long-term track record of successful real estate sales in the La Jolla, California Real Estate Market. Gregg and Lisa Whitney believe Clients should be key finding from this survey as part of the exceptional service they provide to their clients.

Those surveyed in this study released recently constitute Americans with an investable net work greater than $5 million, not including primary residence. Included in this study is a special sub-sample of ultra high net worth Americans with total assets of $25 million or more. Gregg and Lisa Whitney want you to know that an income qualification was not used in the current version of the study and the overall qualification was based solely on investable assets leading to an overall wealthier sample. An independent marketing research firm was retained to conduct this survey and focuses itself on the top wealthiest Americans and their beliefs, concerns and attitudes.

In the final part of this series, Gregg and Lisa would like to give you a findings review of the information contained in depth in the 9-part series.

Polling of high net worth Americans revealed:

• 84% when asked about their personal wealth said they had to start from scratch/became wealthy later in life;
• 87% agree about the importance of encouraging entrepreneurial values in children;
• 85% report their portfolios met (45%) or exceeded (40%) their expectations during the past fiscal year;
  • 8.85% is the expected annual average rate of return for the U.S. market vs. 9.66% for international stock markets;
• 55% agree that hedge funds enable very good ROI and 51% say they reduce portfolio risk.

Respondents are concerned with the effects of wealth on their children and that their children are properly educated in the best ways to handle wealth:

• Nearly nine in ten (87%) agree with the importance of encouraging entrepreneurial values in children;
• Eight in ten (80%) agree with teaching children that wealth is a social responsibility;
• Over half (53%) are concerned about the negative impact of wealth on children;
• 43% feel they owe it to their children to leave a sizeable trust;
• High net worth parents (96%) feel it is important to teach children to manage wealth;
• The majority of parents surveyed (61%) report their children are actively involved in managing their wealth;
• Respondents report 27.4 years old as the average age when their children assume responsibility for managing their own money.

This year’s survey demonstrated that high and ultra high net worth investors have increased interest in hedge funds, but may have a lack of information with regard to hedge funds:

• The majority of respondents view hedge funds as delivering a very good ROI (55%) and reducing portfolio risk (51%);
• Three out of four respondents agree that hedge funds are difficult to investigate (77%);
• Three out of four respondents agree that a good fund is difficult to identify (76%);
• Ultra high net worth respondents appear more likely to invest in hedge funds, with portfolios consisting of 6% of these funds (vs. 2% of high net worth portfolios.)

Philanthropy remains a high priority for wealthy individuals. The survey revealed that many respondents are actively involved in their decision regarding charitable giving:

• 88% say they give because of a desire to return something back to society;
• Nearly three in four (72%) make charitable donations because they want to make a difference in the world;
• Academic institutions (68%) and health-related organizations (66%) are most likely to be the beneficiaries of the charitable bequests of wealth respondents;
• Religious institutions are cited by 43% as a type of charity to which they would consider leaving money;
• Tax considerations are among the least cited reasons when making charitable donations, - only 33% of respondents cite this as a reason for donating;
• Less than one in four (24%) are making donations just to uphold their family tradition.

Respondents are pleased with their portfolios, but view the U.S. stock market as increasingly riskier:

• •85% report their portfolios met (45%) or exceeded (40%) their expectations during the past fiscal year;
• •A vast majority say domestic stocks (81%) and real estate (80%) provided the greatest returns on their investments;
• Although overall economic outlook amongst respondents is generally optimistic, a perception of increasing risk in U.S. stock markets is reflected in an anticipated shift in the distribution of U.S. and international equities in some portfolios;
  • Over half (51%) feel the U.S. stock market is becoming riskier
  • A significant proportion (18%) of respondents who were asked to evaluate the U.S. stock market believe they will be moving out of U.S. stocks – versus only 8% moving out of international stocks.

The top financial worries of respondents are that the U.S. is losing its competitive edge in the world economy (74%) and that the budget deficit will affect the economy over the long-term (74%):

• Following were concerns that the next generation will have a more difficult time financially (73%);
• 72% worry that environmental issues will require more government spending and that taxes will rise significantly over the next few years;
• Another prominent concern is that high taxes will reduce the value of their estate (71 %.)
  

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At Whitney and Associates, we understand the specialized needs of the wealthiest Buyers and are the right choice for the buying or selling of a home in La, Jolla, California.
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Gregg and Lisa Whitney realize that you are probably in the information gathering stage of your process, and we want to provide assistance to you in any of your La Jolla, California Real Estate needs. If you would like to talk to Gregg or Lisa Whitney in person, feel free to call Whitney and Associates at our main line at 858-456-3282.
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