by John Darer CLU ChFC CSSC RSP
A Spectrem Group poll in July 2009 revealed the top five concerns for mass affluent households in 2009:
- A prolonged economic downturn (82%);
- Maintaining their current financial position (74%);
- Having enough money set aside for retirement (71%);
- Inflation (68%) ;
- The financial situation of children or grandchildren (68%).
The study commissioned by the financial consulting firm revealed that 50% are still concerned about their own jobs or their spouse’s job. Most respondents experienced a 30% to 40% drop in their net worth, with a concomitant reduction in risk tolerance. The focus is now on protecting principal and saving.
Cited in Money Management Executive, Spectrem President George Walper, Jr said:
"The shift to a more conservative investing approach could be in place for another five to 10 years,
He also was cited as saying the study revealed “even the younger investors, those between 35 and 50-years-old are more conservative than ever before"
The Spectrem report is based on the online polling of 1,498 households. Mass affluent is defined as those with $100,000 to $1 million in net worth, not including primary residence. This sector accounts for approximately 30 million households in America. The data have a margin of error of plus or minus 2.5%.
Settlement consultants must incorporate an additional psychological or emotional dimension into their clients' profiles to gain a deeper understanding of their clients, who are in a life transition and where they are and their expectations.
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