When wealthy individuals lost money on investments during the global economic crisis, their wealth managers were the first to get the sack. Having lost confidence in the ability of wealth managers to steer their fortunes, the wealthy classes themselves plunged into the investment market. However, now that the economy is in recovery mode, a millionaires’ survey shows that fewer millionaires plan to take care of their own investments.
A survey of millionaires by Spectrem Group reveals that only 47 percent still want to be actively associated with their investments. This is a decrease from 2009, when 69 percent went the DIY route. Back in 2008, a survey had shown 81 percent of millionaires sufficiently disgruntled with their financial advisors to pull their money away. The trend holds for the $5 million to $25 million category. 50 percent of those polled continue to be actively involved. Back in 2009, this was 67 percent.
An odd finding is that the surveyed millionaires have admitted to not enjoying investing as much as they did in 2009. 64 percent enjoyed making investments back in 2009. Fast forward to 2011, where only 45 percent enjoy it.
George H. Walper Jr., president of the Spectrum Group said that millionaires’ desire to be actively involved with their investments has seen a substantial decline since 2009. He attributes this decline to “investor fatigue”, which is spurring wealthy investors to bring professional advisors back on board.
The question worth asking is whether wealthy investors have forgotten the trials of the crisis or are simply not equipped to invest their own vast wealth.