Pinecrest, FL, May 2--They earn an average of $360,000 a year, their net worth averages nearly $3 million, and they control 70% of the private wealth in the country.
These are the people in the wealthiest 10% of all U.S. households. What gives them the most pleasure in their lives? Spending time with family and friends, according to the latest semi-annual Survey of Affluent Americans conducted by the American Affluence Research Center.
In many ways, the affluent are not so different from other Americans, says Howard Waddell, director of AARC. "How different are they when the stores where they shop most frequently are Home Depot, Target, and Costco?" he asks.
The national survey of 376 affluent men and women shows that, overall, America's wealthiest are feeling good right now. Six months ago, the number of affluent people who said they were financially better off than two years earlier was nearly equaled by the number who felt they were worse off.
Now, the number who says they are better off is more than 2.5 times the number who says they are worse off.
Today, the affluent are more positive about the current state of business conditions than they were six months ago. Although they are less optimistic about the 12-month outlook for the economy, the stock market, and their own incomes, the decline in their optimism may be because there is less near-term upside to the economy than there was last autumn, says Waddell.
Investment strategies of the affluent have also changed. One year ago, equal numbers invested primarily for growth and for capital preservation. Today, more than twice as many invest for growth.
The survey indicates that the affluent expect to increase spending for domestic vacation travel, charitable contributions, home furnishings, entertainment, and casual dining-out in the next 12 months. However, their spending for photographic equipment, collectibles, and personal luxury items is expected to drop.
The survey also found that:
*Of 25 non-news magazines listed on the survey questionnaire, the most likely to be read by affluent men are Travel & Leisure, Architectural Digest, Forbes, and Fortune. The magazines women are most likely to read are Bon Appetit, Travel & Leisure, House Beautiful, and InStyle.
*In addition to spending time with family and friends, participating in favorite leisure activities, discovering or learning new things, and having the respect of others give the affluent their greatest pleasure.
*The ways that the affluent learn about new products depend on what those products are. Conventional advertising has been significantly more effective for home products while word-of-mouth, print articles, and the internet have been more effective for resorts and travel destinations.
