Wealth is defined as having enough money to live one's life with no financial constraints, rather than reaching a specific asset level, according to the UBS Wealth Management Americas Investor Watch report released Monday.
However, survey respondents also said it would take at least $5 million to be considered wealthy.
The survey of high-net-worth and affluent investors found that nearly 70 percent of investors with more than $1 million in investable assets do not consider themselves wealthy. Investors define wealth as having no financial constraints (50 percent), as opposed to never having to work again (10 percent) or being able to afford a luxurious lifestyle (9 percent), according to the survey.
The survey of 4,450 people included 2,144 individuals with $1 million or more in investable assets and 2,306 with $250,000 to $1 million. All work with a financial advisor.
"Investors are telling us that mindset matters even more than money," says Emily Pachuta, head of investor insights at UBS Wealth Management Americas.
While the ability to afford healthcare and long-term care remains the top personal concern (27 percent) for investors, their children’s and grandchildren’s financial situations rank second (20 percent), beating out the ability to afford retirement (14 percent) and the potential to outlive one’s assets (14 percent).
Among investors with adult children ages 18 to 39, 18 percent have multiple adult generations living in their home and 75 percent of investors with grandchildren currently help financially support their children or grandchildren.
When it comes to their investments, the respondents have 23 percent of their assets in cash. Having high levels of cash enables investors to feel comfortable investing large portions of their remaining assets in equities, UBS says.
“Investors are using significant cash holdings as a type of security blanket to give themselves peace of mind, but also to allow them to feel comfortable getting out there and participating in the market again,” says Pachuta.
Survey respondents who have a comprehensive financial plan that includes money for long-term healthcare expenses and financial support for children and grandchildren said they have a high level of confidence (85 percent) in their planning. For those with a more traditional plan, 57 percent have a high level of confidence in their plan.
Investors see the Federal Reserve Bank ending stimulus as a positive move for the long term. However, 51 percent expect this change to have a negative short-term impact on the economy. The majority of investors (59 percent) are not changing their investment strategy as a result of the Fed announcement, the survey shows.
Sixty-seven percent of investors believe the economy is strengthening and 60 percent say their long-term economic outlook is bright.