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The Perception:Affluent investors are in the wealth preserving mode, rather than the wealth building mode.
The Reality:
The myth is that Affluent households are satisfied with their level of assets and are trying to preserve their wealth. In reality 65% of the Affluent indicate their primary investment strategy is to build wealth rather than preserve wealth. As wealth increases this percentage does go down. Seventy percent of those with $500,000 to $1MM in investable assets indicate they are in the wealth building mode, while the number drops to 65% of those in the $1-3MM and down to 56% of those in the $3MM plus range. Age is a huge driver of the build versus preserve camps. Of those less than age 50, 91% indicate they are in the wealth building mode while the percentage drops to 59% for those in the 50-64 range and to 44% in the 65-74 range. The percentage of those over age 75 who are still in the wealth building mode is 42%, a relatively high percentage for those who it would appear would be more interested in preserving their wealth.Occupation has little to do with the "builders" versus the "preservers". Sixty-nine percent of Business Owners say they are building wealth compared to 74 percent of Senior Corporate Executives who say they are building wealth. 
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High Net Worth Advisor Insights Newsletter April 2008
