Why You May Want to Bury Your Money in the Backyard
By Hal M. Bundrick
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.Sorry, Trump -- even real estate was down the list for most of the wealthy investors surveyed, with only 14% saying they would invest in real estate over the next 12 months. Drilling down to alternative investments, hedge funds and private equity firms were of interest to 21% of the affluent respondents.
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