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

Published by: American Affluence Research Center

Published: Apr. 16, 2008 - 31 Pages

Table of Contents

Survey Highlights

Introduction and Discussion

Respondent Profile

Geography, Age, Gender, Net Worth, Income, Investable Assets

Outlook for the Economy, Stock Market, Personal Household Income, and Savings

Current and Future Business Conditions

Expectations for the Stock Market, Personal Income, and Savings

Economic Outlook by Selected Demographics

Historical Affluent Consumer Expectations (ACE) Indexes

Investment Objectives

Historical Tracking Data

Investment Objectives by Selected Demographics

Major Purchases (8 Items) in the Next 12 Months

Historical Tracking Data

Planned Purchases by Selected Demographics

Expected Changes in Spending for 17 Products and Services

Historical Tracking Data

Impact of Current Economic Conditions on Spending by the Affluent

Actions Taken (or Not) to Reduce or Defer Recent and Future Expenditures

Plans for Purchase of 8 Major Items Among Those Reducing or Deferring Expenditures

Expected Changes in Spending for 17 Products /Services Among Those Reducing Expenditures

Reasons for Reducing or Deferring Expenditures

Reasons for Reducing or Deferring Expenditures - Frequency Distribution by Number of Responses

Current Type of Mortgage on Primary Residence

Plans for Purchase of 8 Major Items Reflecting Existence and Type of Home Mortgage

Expected Change in Spending on 17 Products /Services Reflecting Existence /Type of Home Mortgage Current Mortgage Balance on Primary Residence

Plans for Purchase of 8 Major Items Reflecting Mortgage Balance as % of Home Value

Expected Change in Spending on 17 Products /Services Reflecting Mortgage Balance vs. Home Value

Relationship between Mortgage Type and Mortgage Balance

The American Affluence Research Center

Mailing Lists of the Affluent

Abstract

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.

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.