The market has by no means rebounded from the pounding it took in late 2008, but the question on the minds of investors and advisors alike, is what will be the investments of the future?

Although HNW investor’s anger is equally spread between the federal government and Wall Street, the challenge for financial providers is that investors can’t easily demonstrate their anger toward the government, but they can and eventually will demonstrate that anger towards firms they believe are responsible. This will lead to investors changing advisors, arguing about fees, or becoming more Self-Directed. Many investors are waiting for the market to stabilize before making any significant investment changes but will make changes in the future...primarily into investments they deem as “safe”.

Approximately 42% of investors have already made changes to their investments and another 39% anticipate changing their investments in the next few months. About 30% are currently buying more equities because of the low price, but most investors are moving their assets into vehicles they feel are “safe”, primarily cash. This movement towards cash investments is particularly prevalent for Baby Boomers.

Note that 17% of investors still consider real estate to be a good investment, particularly younger investors. Younger investors are also looking to invest in Alternatives (probably with a hope of quickly regaining their losses). It should also be noted that those with over $5 million are also looking at alternatives. The challenge with the investment changes that investors plan on making is that these more conservative investment allocations are not likely to spur stock market growth. While investors wait for the market to rebound, overcoming their own fear will be one of the greatest obstacles to economic recovery

Get Rich, Stay Rich, Pass It On, published in January 2008, by Catherine McBreen and George Walper is based on groundbreaking generational research into America's richest families. Each year, McBreen and Walper's firm surveys more than five thousand millionaire and megamillionaire households, and conducts many in - person interviews, on-line research, and historical analysis. They know the ways that millionaires have made their money for generations, and have outlined it in their book. Perhaps the younger HNW investors will be able to take this information and use it for their own benefit, with the help of a savvy advisor.

An advisor can help a young investor dissect the patterns and habits that Walper and McBreen have laid out in their book, and use those to recoup some of their losses as well as make a solid plan for the future. 

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