How Do You Define Wealthy?

Respondents to the UBS Wealth Management Americas Investor Watch survey defined what it is to be “wealthy” not as having a particular amount of money, but as having a “lack of financial constraints.” The findings were based on a survey of 4,500 people, half of whom had more than $1 million in investable assets and half with between $250,000 and $1 million.

While 50% chose “having no financial constraints” as the true definition of wealth, when pressed for a number, 70% settled on at least $5 million. Ten percent said wealth meant “never having to work again” and 9% defined wealth as “being able to afford a luxurious lifestyle.”

Among the financial concerns of the polled investors:

  • Health care and long term care (27%)
  • Children’s and grandchildren’s financial situations (20%)
  • Being able to afford retirement (14%)
  • Potential to outlive one’s assets (14%)

Notably, of respondents who had a financial plan that addressed health care and financial support for children/grandchildren, 85% said they had confidence in their planning. Only 57% of those with a plan that managed only their investments had confidence in their plan.

The report also found 67% of respondents believe the economy is improving. In fact, most viewed the Federal Reserve Bank’s suggestion that it’s time to end the stimulus program as a positive change. However, 51% expect the end of the Fed’s bond-buying to have a negative short-term impact on the economy. And 60% think their long-term financial future is bright.

How do you define wealth? We would love to get your thoughts on your definition of “wealthy” and your top concerns.

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