Affluent Market Tracking Study #13, Spring 2008 Survey of the Wealthiest 10% of US Households

The 13th in a continuing series of research reports based on twice-yearly surveys of the most affluent 10% of U.S. households (a total of 11.2 million households with an average $3.1 million net worth) as determined by The Federal Reserve Board. These surveys regularly measure and track their current views as well as their 12-month outlook for the economy, the stock market and their personal earnings, savings, and investment objectives.

This survey contained special questions to help identify which segments of the affluent market are reducing or deferring expenditures (and which are not) due to current economic conditions, why they are reducing their expenditures, and for what types of products and services spending is being cut back. This report also explores what types of mortgages, if any, exist on the primary residence, how much equity exists in the home’s value and how these factors may influence future spending plans.

The surveys track plans for major purchases (vacation homes, primary residences, home remodeling, automobiles, boats, and cruises) during the next 12 months. The survey also tracks anticipated changes in spending during the next 12 months for 17 categories of products and services. These include fine jewelry and watches, domestic and international travel, dining in casual and upscale restaurants, furniture, major appliances, entertainment equipment, home computer equipment, entertainment, recreational activities, collectibles, designer and non-designer apparel, and charitable and political contributions.

For much of the preceding, the report shows historical trend data and data by demographic segment within the overall affluent population.

Research Methodology

This research is based on self-administered questionnaires mailed to a randomly selected, national sample of 5,000 men and women in households that, based on their income and ownership of certain assets, were expected to meet the minimum net worth requirement of $800,000.

The profile of the sample is as follows: $316,000 average household income, $3.1 million average household net worth, and $1.5 million average household investable assets. The average value of their primary home is $1.2 million. The average age is 54 while 88% are married and 57% are males. The sample represents 27 states plus the District of Columbia.

The overall survey response rate was 12.2 percent. These survey results are based upon the 467 men and women who promptly responded to the survey and met the minimum net worth requirement. The maximum margin of error of this survey, at 95% confidence, is five percentage points.

Additional Information
These surveys focus on the 11.2 million households that represent the wealthiest 10% of all U.S. households, based on net worth. The latest research available from The Federal Reserve Board indicates these households:

• Have a minimum net worth of $828,000.
• Have an average net worth of $3.1 million.
• Have an average income of $256,000.
• Earn 36% of the total income of all Americans.
• Own 63% of the personal assets of all U.S. households.
• Hold 89% of the total value of all publicly traded stock and stock mutual funds in the U.S.
• Own a primary residence valued at an average of $651,000.

Please Note: Data is delivered in a Word Zip File.