All articles tagged with #high net worth individuals
Mega-rich Americans are shifting their wealth away from stocks and bonds towards cash and alternative investments, driven by market volatility and inflation fears, with notable figures like Warren Buffett and Peter Thiel increasing cash reserves and diversifying their portfolios.
J.P. Morgan Private Bank has released its 25th annual Summer Reading List, featuring 10 books curated to match the interests of its wealthy clients. The list includes titles on effective communication, artificial intelligence, Formula One, whiskey, and the art collection of Alicia Keys and Swizz Beatz. The list is created by surveying over 35,000 client advisors and employees globally, and it helps advisors connect with clients during the summer. This year's edition also highlights the charity Water.org and its book "The Worth of Water" by Gary White and Matt Damon.
High-net-worth individuals (HNWI) are changing their investing habits amid falling stock prices, rising interest rates, and an uncertain economic outlook. According to a report by the Capgemini Research Institute, HNWI individuals have increased their allocation to cash and cash equivalents to 34% of their wealth in 2022, up from 24% the previous year. This is the highest rate in over a decade. The report also found that only 23% of HNWI wealth was held in equities, down from 29% in 2021. HNWI individuals are opting for short-term cash allocation, checking accounts, savings accounts, and CDs. The focus on wealth preservation has become a priority for HNWI, with nearly 70% citing it as their main focus.
While the average American believes they will need $1.27 million to retire, high-net-worth individuals estimate they will need more than double that amount, with the average person in this pool estimating they will need $3 million. The disparity is due to differences in lifestyle expectations and legacy planning. However, the specific retirement savings goal varies for each person based on risks, lifestyle, and personal circumstances. Meeting with a financial professional is recommended to determine an individual's specific number. Achieving a $3 million nest egg is achievable with careful budgeting, intentional investing, debt elimination, and risk accommodation.
The tokenization of real estate assets has increased liquidity and access to investments that were previously only available to high-net-worth individuals. This has been made possible through the use of cryptocurrency and blockchain technology. The ability to create permissionless subnets with native tokens supporting consensus, safe communication and transfer between subnets, and more easily customized VMs means the Avalanche tech stack now represents a significant competitor to the Cosmos SDK and other app-chain ecosystems.