Welcome to the second installment of this two-part blog post on the retirement fears faced by the majority of America’s high income earners. In Part 1, San Diego financial advisor for JKL Wealth Management, John Lohrenz, explained the results yielded by 2013 Insights on Wealth and Worth: a survey done of 711 affluent Americans by the U.S. Trust Bank of America Private Wealth Management.
This survey revealed that many of our country’s “ultra wealthy” – those with $10 million and more in investable assets – do experience financial insecurities when considering the future. The survey also indicated that the majority of these individuals do not feel well informed about tax issues, how changes in taxes might affect their income and how they can minimize the impact of tax on this income.
With the help of San Diego financial advisor, John Lohrenz, we now examine the results yielded for the affluent individuals who possess $3+ million in investible assets.
The Results of U.S. Trust Bank’s Survey for America’s High Income Earners
Many of the concerns and insecurities expressed by the “ultra-wealthy” were reflected by the responses provided by those with $3+ million. They too were not certain about their future and were concerned that they may not have sufficient income for retirement, even though they may feel secure at the present.
But the survey also yielded some other interesting bits of information about the financial behaviors of America’s affluent, this time with regards to family. According to the survey, only 40% of the respondents with children over the age of 25 had actually told their kids about their wealth. The majority had either said little or nothing at all to their children.
What Could This Mean?
“The main reason affluent families and high income earners do not discuss their wealth with their children is because they are scared it’s going to take the wind out of their children’s sails with regards to work ethic,” explains San Diego financial advisor for JKL Wealth Management, John Lohrenz. “They are worried that if their children knew they stood to inherit a few million dollars in 10 or 20 years time, it might affect their life decisions and cause them to live a little less smart and a little less financially savvy.”
The survey also revealed that:
- Almost 90% of parents think that their kids could benefit from a consultation with a financial advisor or similar wealth management professional, but only 16% actually provide their kids with a financial education.
“This again, is the failing of these individual’s wealth managers,” explains San Diego financial advisor John Lohrenz. “As a financial advisor, I’m not only concerned about my client’s wealth; I’m also keenly interested in meeting with their next generation and in maximizing the impact of this transition of wealth upon their lives. This begins with the right education and at least some financial literacy. Helping both generations achieve greater financial security and their ultimate wishes with regards to wealth management benefits everyone as it sees a continuation of your own business, too. It’s win-win.”.
Most affluent Americans and even those who are considered to be ultra-wealthy face their fair share of financial insecurities and uncertainties. If you’ve worked hard your whole life to achieve a standard of living, the last thing you want is to lose it all as you enter your retirement, simply because your investments are not managed in a way that ensures you the greatest income, the lowest tax and the greatest security. If you are looking for the kind of sound advice and investment expertise that can come only with advanced experience, contact San Diego financial advisor for JKL Wealth Management, John Lohrenz.
If you have any questions at all or would like individualized investment advice from our San Diego financial advisor, please contact JKL Wealth Management at:
Phone: (858) 535-1705
Fax: (858) 535-1701
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