Millionaires Have Their Worries Too
And on a slightly longer time horizon, their optimism increases for 2010, bringing it to the highest level since Fidelity's "Millionaire Outlook" study began in 2006. In addition to anticipating a stock market rebound, there was increased optimism that business spending and consumer spending would rebound.
The survey revealed one huge cloud on the horizon for millionaires: the likelihood of higher taxes. Those expecting higher capital gains taxes was at 72%, while 67% anticipate a higher dividend tax rate, and 62% predict higher federal income tax rates.
They indicate they are taking action now, including accelerating plans to harvest remaining capital gains at the current low rates.
If you ever wondered why retailer Neiman Marcus is suffering, while Wal-Mart (WMT) sales keep rising, it is explained in this survey. Although most Americans would feel wealthy beyond worry at the multi-millionaire level, those in the survey revealed they are cutting back their spending and planning to save more.That could be because those surveyed revealed an average 19% drop in household income, and a similar drop in the value of their investments, along with a 28% decline in their real estate holdings. Even so, nearly two-thirds in the survey picked the United States as the region with the highest potential for investment returns in the next year and five years, while China came in second. Remember when you dreamed of making a million? (This presumes you are at least 50 years old, and were astounded at the young tech billionaires that emerged around the millennium.) Well, clearly a million dollars isn't what it was in the old days. It's not even enough to buy you weekly visits to a shrink who could help advise you on your anxiety over your shrinking assets.
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