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October 06, 2004 at 08:00 PM
Reports Of The High-Net-Worth Market Being Saturated Are Highly Exaggerated
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One of the persistent myths regarding the high-net-worth market is that it is a mature or saturated market as it relates to the opportunities available to sell and advise on financial products and services.
This myth typically is embodied in comments such as “everybodys chasing the high end of the market” or “the affluent market is crowded.” Such observations often emanate from industry pundits who, for whatever reason, are intent on directing more marketing efforts toward the middle market. And while there is no question the middle market in this country is woefully underserved when it comes to financial products and services, research also shows that opportunities continue to abound for sales in the upper end of the market.
While many surveys ask consumers about their financial goals, we believe a more meaningful measure of market opportunity is obtained by asking consumers where they currently stand in relation to the achievement of their financial goals. The results from the 2004 Phoenix Wealth Survey show the percentages of high-net-worth consumers (defined as households with net worth in excess of $1 million, excluding their primary residence) who are still working to accomplish their financial goals.
With the exception of “financing childrens college expenses,” which is not surprising given the age demographics of this market, half or more of the households in this market are still “in progress” when it comes to achieving financial goals. Conservatively stated, at least one out of every two high-net-worth households is still working toward one or more financial goals!
