How tough! Most millionaire investors are just not feeling very wealthy any longer — only about 3 out of 10 experience that warm glow of good fortune.
A million just is not what it used to be.
And most in this elite group won’t consider themselves wealthy until they have a whopping $5 million in assets and no financial pain, according to a surprising new survey.
There might be a good reason: Four out of five with adult children are offering financial assistance to their adult children, grandchildren and older parents.
And about 1 in 5 is sharing a home with these adult kids.
In fact, the super-rich support their adult offspring and aging parents in other generous ways: financing education (42 percent); lending financial assistance (20 percent) and making large purchases (18 percent).
This latest UBS survey of high net-worth investors ($1 million or more in investable assets), investors with between $250,000 and $1 million, and clients of UBS Wealth Management Americas, confirms that financial freedom is elusive.
All told, 4,450 investors completed the survey.
“Investors are telling us that wealth isn’t just about money. It’s about being able to do what you want to do when you want to do it,” said Emily Pachuta, head of Investor Insights, UBS Wealth Management Americas. “If you ask, ‘What is wealthy?’ we observe that it’s about having no financial constraints — holding a lot of cash, taking care of family.”
Two other striking findings of the UBS survey:
* Investors are still holding a lot of cash (around 20 percent of their assets) to offset their overall financial risk.
* Investors’ confidence in their own investments improves dramatically, from 57 percent to 85 percent, when long-term health-care spending and financial support across multiple family generations are put into their financial plans.