NEW YORK (MainStreet)It's getting to the point where wealthy investors might just start burying their money in the backyard. A Spectrem study of households with annual incomes of $750,000 or more says the richest segment of investors is getting very cautious.
A vast majority of the affluent money makers (70%) say they plan to put money into savings accounts over the next year. That's right, savings accounts. Nearly half (48%) report they will be investing in money market funds. Give them a towel and a cup of Gatorade; they're out of the game and on the sidelines.
And forget fixed income. Only one-quarter of these well-heeled households are planning on buying individual bonds or bond mutual funds. And the only international exposure they're looking to get will be from a tan on the beach in Sanya. Just 26% say they will consider overseas investments of any type, including stocks and mutual funds.
If you're loaded, what would be your biggest concern when it comes to investing? When the survey asked these top-tier money makers to list the factors that most influence their investment strategies, most agreed that all aspects of investments have to be considered but 88% said the level of risk was the biggest factor. Other considerations were diversifying a portfolio (82%), the reputation of the companies where investments are made (78%), and 72% said the tax implications of investments were factors in determining where their money was invested.