Becoming a millionaire sounds like a great financial goal! However for wealthy investors, $1 million isn’t enough to be financially independent. According to a UBS survey investors consider $5 million to be the new benchmark for financial success. They believe once you’re past $5 million, you have reached true financial independence and don’t have to worry about how or where you spend it.
“It’s about being able to do what you want to do when you want to do it,” explains Emily Pachuta, Head of Investor Insights, UBS Wealth Management Americas. However getting there isn’t that easy, especially with the current demographics, economy and market volatility. Since 2010, cash holdings in portfolios have increased from 3% to 23% since 2010.
More findings from the study:
- Nearly 70% of investors with more than $1 million in investable assets do not consider themselves wealthy.
- They’re most concerned about saving for long-term health care, but providing for children and grandchildren comes a close second.
- Long-term care planning: only 33% are highly prepared and 36% are not prepared.
- 4,500 investors were surveyed, each with a minimum of $1 million in assets or available to be invested.