The three top priorities wealthy investors have for the new year are actually in contradiction to one another, but one concern weighs more heavily than the others.
Wealthy investors aren’t concerned about diversifying their portfolios or another down market — even they are most worried about building their retirement funds, according to a recent survey.
The deVere Group’s survey found that 38% of respondents named building their retirement investments as their top financial resolution, making it their top priority for 2014. This concern for their retirement funds is fueled by increasing living costs, the current low interest rate environment and worries about medical bills during their Golden Years, according to Nigel Green, chief executive officer of global investment advisor deVere Group.
"The poll highlights that even society’s wealthier people are concerned about being able to fund the lifestyle they desire throughout their retirement," Green said in a statement.
The survey included deVere clients around the world between the ages of 25 and 75 who have an investment portfolio of at least $1.65 million.
"The money we accumulate will have to last longer than ever before, it is prudent that putting more aside to fund retirement is the number one resolution in 2014," Green said.
However, deVere’s client base, possibly due to its wide age range, is at odds. The answers rounding out the top three seem to contradict the top concern. In second place, 22% of respondents said their top concern for 2014 was providing more financial support for families, while 20% actually want to include riskier assets to diversify their portfolio.
A Merrill Lynch study from a month ago revealed the dangers in providing too much assistance to family members, though. The survey results found that people age 50 and older with less than $5 million in investable assets are providing an average of $14,900 to family in the last five years. However, those with investable assets between $500,000 and $5 million provided financial support to family members to the tune of $34,100 in the last five years.
As a result of providing this support, or committing to providing the support in the future, half said they would make major sacrifices that could impact their retirement — 60% would retire later; 40% would return to work after retirement; and one-third would accept a less comfortable retirement lifestyle.