CHICAGO, January 6, 2009 – America’s millionaires are feeling significant pain.
U.S. households worth $1 million or more have seen their assets decline 30% during the current financial crisis, according to a new report released today by Spectrem Group (www.spectrem.com). Nearly one-fifth (17%) of millionaires have absorbed declines greater than 40%, according to the report, titled “Attitudes of Affluent Investors on Surviving the Economic Crisis.”
Nearly all the millionaires surveyed (90%) fear a prolonged economic downturn. Altogether, they believe it will last for another 22 months, and more than half (55%) are concerned they will not have sufficient assets to maintain their present lifestyles.
“The current financial crisis has had a dramatic impact on America’s millionaires, reducing their net worth substantially and threatening their ability to maintain both lifestyles and retirement plans. While they blame the government and Wall Street directly for the situation, many millionaires are not happy with their advisors’ performance and few say they will increase the work they give to advisors,” said Catherine S. McBreen, Managing Director of Spectrem Group.
Indeed, just 36% of millionaires feel their advisor performed well during the crisis and only 14% say they will increase their use of financial advisors in the future.
The Spectrem Group report, “Attitudes of Affluent Investors on Surviving the Economic Crisis,” is based on the online polling of 750 households with over $1 million of net worth. Polling was conducted in November 2008. The data have a margin of error of plus or minus 3.5 percentage points. Information was also gathered during focus groups conducted in New York, Palm Beach, Seattle, Los Angeles and Chicago.