High-net-worth and affluent investors define wealth as being able to live life with no financial constraints, and feel $5 million is the minimum needed to be considered wealthy, according to the recent UBS Investor Watch, a quarterly survey.
The survey of 4,450 investors found that 69% of those with more than $1 million in investable assets did not consider themselves wealthy.
Half of respondents defined wealth as having no financial constraints, while only 10% said it meant never having to work again and 9% said it was being able to afford a luxurious lifestyle.
While the ability to afford healthcare and long-term care was the top personal concern for 27% of investors, 20% said their children’s and grandchildren’s financial situations were most important, 14% listed the ability to afford retirement and 14% the potential to outlive their assets.
The survey found that 82% of respondents most enjoyed financially helping their grandchildren, 76% their adult children and 59% their parents. Two-thirds of those with adult children ages 18 to 39 currently supported them financially.
Twenty-three percent of investors continued to hold high levels of cash, and used these holdings as a way to reduce their risk level.