The study is the latest in a series detailing the financial profile of affluent Americans, who are defined as having investable assets of $100,000 or more, excluding their primary residence.
Results also show that the investment vehicles most widely held by affluent Americans are:
- mutual funds, held in 63% of portfolios
- individual stocks, held in 61%.
According to the findings, the average affluent American has a portfolio of investable assets totaling $738,000.
Asset allocation by the affluent has remained fairly constant over the past two years, although the latest study reveals a movement towards equities at the expense of cash.
Equities command the lion’s share, at 37%, up from 34.5% immediately following the terrorist attacks. That was followed by:
- cash or cash equivalents at 20%, down from 22%
- fixed income securities at 13%, down from 15%
- “other” assets making up the remainder, up from 28%.
Affluent Americans have reduced their expectations on annual financial returns over the next 10 years to 9.5% annually, significantly lower than the 13.5% reported just after September 11, and the 12.9% rate reported the month before.
The responses of 390 affluent Americans were included in the survey. The interviewing was conducted from March 15 to 24, 2002