Wealthy Americans Reset Values: Emphasize Living Within Their Means, Shift in Budgeting
11 Januar 2010 - 12:30PM
PR Newswire (US)
- Express Concerns About Spoiling Their Kids and Spending On
Non-Essentials, PNC Survey Finds - PHILADELPHIA, Jan. 11
/PRNewswire-FirstCall/ -- The recession has caused a significant
number of America's wealthy to re-evaluate their lifestyles,
according to a survey by PNC Wealth Management, a member of The PNC
Financial Services Group, Inc. (NYSE:PNC). Four out of 10 (42
percent) say they have felt a negative impact on their family
budget, with one-third (34 percent) experiencing a negative effect
on their lifestyle, according to the sixth annual Wealth and Values
Survey. In addition, wealthy Americans have changed their views of
what is important as a result of the recession, emphasizing living
within their means, developing an appreciation for non-material
aspects of their lives and re-evaluating priorities. Nearly nine
out of 10 (88 percent) believe it is "more important than ever to
live within my means" and two-thirds (66 percent) believe they have
"developed a greater appreciation for the non-material wealth in my
life." Half (50 percent) say they "feel more centered because the
recession has given me an opportunity to re-evaluate my
priorities." Also, concern over children becoming more spoiled has
risen dramatically in the last two years. This year's survey
revealed that 35 percent "believe that my children may be too
spoiled by money and have too many material possessions," up from
22 percent in 2007. Just over half (51 percent) believe the
recession has changed the way their children will manage their
finances and has prompted nearly half (47 percent) to discuss money
management with their children. "For wealthy individuals, the
recession has presented an ideal opportunity for a strategic
analysis of their current lifestyle," said Steve Pappaterra, senior
vice president and managing director of wealth planning for PNC
Wealth Management. "It is time to strip away the clutter, discern
what is most important, and develop tangible action steps to ensure
that key goals and dreams are accomplished and important values are
passed on." Pappaterra said those steps should include personal
reflection and conversations with family to determine the redefined
values and consulting with an advisor to facilitate a financial
plan. Spending Down, Too The survey of 1,046 wealthy Americans, all
of whom have at least $500,000 in investable assets, also revealed
that they have been impacted in other ways by the recession. Four
in 10 (42 percent) have cut their spending on non-essential goods,
while three in 10 (29 percent) have provided financial assistance
for friends or family who need it. Among the ultra-wealthy (those
with $5 million or more in assets), 39 percent are more likely to
have provided financial assistance to friends or family, compared
to 26 percent of those with assets of $500,000 to $1 million. The
PNC Financial Services Group, Inc. (http://www.pnc.com/) is one of
the nation's largest diversified financial services organizations
providing retail and business banking; residential mortgage
banking; specialized services for corporations and government
entities, including corporate banking, real estate finance and
asset-based lending; wealth management; asset management and global
fund services. Survey Methodology The Wealth and Values Survey was
commissioned by PNC to identify attitudes about wealth among
high-net-worth individuals, how it affects their lives and their
needs in managing wealth. The survey was conducted online within
the United States by Harris Interactive® in September and October
2009 among a nationwide cross section of 1,046 adults (age 18 or
over) with annual incomes of $150,000 or above (if employed), at
least $500,000 of investable assets (unless retired) or at least $1
million of investable assets (if retired). Findings are significant
at the 95 percent confidence level with a margin of error of +/-
3.0 percent. The survey was designed and managed by HNW, Inc.
(http://www.hnw.com/), a leading provider of wealth marketing
software and solutions to financial services companies and
intermediaries seeking to capture and serve the high net worth
market. The survey was supported by Artemis Strategy Group
(http://www.artemissg.com/), a communications strategy research
firm specializing in brand positioning and policy issues. This
report has been prepared for general informational purposes only
and is not intended as specific advice or recommendations.
Information has been gathered from third party sources and has not
been independently verified or accepted by The PNC Financial
Services Group, Inc. PNC makes no representations or warranties as
to the accuracy or completeness of the information, assumptions,
analyses or conclusions presented in the report. PNC cannot be held
responsible for any errors or misrepresentations contained in the
report or in the information gathered from third party sources. Any
reliance upon the information provided in the report is solely and
exclusively at your own risk. CONTACT: Alan Aldinger (412) 768-3711
DATASOURCE: PNC Wealth Management CONTACT: Alan Aldinger of PNC,
+1-412-768-3711, Web Site: http://www.pnc.com/
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