Wealth In America 2007

Credit Geoff Considine at Seeking Alpha for calling attention to Northern Trust's second survey of relatively wealthy Americans. Would-be wealth managers couldn't ask for a better introduction to the high-net worth market.

They'll learn, for instance, that folks with $10 million or more don't invest like folks with only $2 or $3 million. It's the wealthier group that's into private equity, hedge funds and other alternatives to blue-chip stocks.

Does this suggest that the SEC's proposal to bar investors with less than $2.5 million from access to hedge funds is unnecessary?

Northern's survey also reveals how investments (and attitudes) vary according to a high-net-worth individual's age.

No surprisingly, the survey indicates full-service brokers are far and away the investment adviser of choice for those (about 60%) who seek advice.

Inheritance

Recent prevailing wisdom suggests that inheritance is no longer a significant source of wealth in most cases. But those surveyed for Northern seem to be doing pretty well as heirs:

Slightly over one-third of millionaire households (35%) have received a sizeable inheritance. Their inheritances average in excess of $200,000, with nearly 25% valued at $1 million or more.

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Expectations for future inheritances are relatively strong among millionaire households. About one-quarter expect to receive a sizeable inheritance, averaging close to $850,000.