Wealthy Americans are serious about minding their money, according to a new survey.
This demographic with more than $1 million in investable assets are active, disciplined long-term planners who take very little for granted, according to research by Northwestern Mutual.
More than eight in 10 (84%) of wealthy people indicated that they have a long-term financial plan that factors for up and down economic cycles, compared to 52% of the general population who said the same, according to the company's 2023 Planning & Progress Study.
The wealthy also trust and work with financial advisors at a far greater rate. The study found that 70% of millionaires versus 37% of the general population work with a financial advisor. Moreover, 53% of wealthy people consider advisors to be their most trusted source of financial advice. Spouses/partners ranked a distant second at 11%, followed by business news at 10%.
The study also found that even with safeguards such as having an advisor, 47% of millionaires said their financial planning still needs improvement, and a third believe it is possible they could outlive their savings.
“Wealthy people hold themselves to an exceptionally high standard when it comes to managing their finances,” Aditi Javeri Gokhale, chief strategy officer at Northwestern Mutual, said in a statement. “They don't go on autopilot. Instead, they aim to see well beyond today. That includes the possibility of twists and turns in their financial lives."
The 2023 Planning & Progress Study, conducted in February and March by the Harris Poll, included 2,740 U.S. adults with oversamples of Gen Z and high-net-worth with greater than $1 million in assets.