Lack Of Understanding Holds Back Investors

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    Most of the wealthy, and particularly younger high net worth (HNW) investors, either currently use or are interested in adding non-traditional assets to their investment portfolios, including private equity and venture funds (48 per cent). Seven in 10 own or are interested in owning tangible investments such as land, real estate, oil and gas properties, and timber, primarily to diversify the portfolios and source of risk and income. Yet, lack of understanding and perceived risk is holding back one in three HNW investors from these types of investments, says the ‘2015 U.S. Trust Insights on Wealth and Worth.’ The report found that a majority of the wealthy seek advice on one technical aspect of planning, such as portfolio performance, tax planning, and estate planning. However, only about one-third of the wealthy are talking with an advisor about strategies around the goals they consider to be fundamentally more important, including identifying family needs and goals (36 per cent) and planning for increased longevity (34 per cent). Even fewer are having discussions about the strategic use of credit (21 per cent), strategic philanthropy (18 per cent), and investing for social impact (11 per cent). The report found that those people who are getting professional advice are farther along on measures they describe as essential to a fulfilling, meaningful life. Not only do they feel more financially security and are less conflicted by competing priorities, they are more likely to say their family has a healthy relationship with money and their actions are in greater alignment with their intentions when it comes to growing, preserving, and passing on wealth and making a difference in the world.