How Business Owners Make Financial Decisions; Specific Areas Where They Seek External Financial Advice. (Graphic: Business Wire)

Despite the slow economic recovery, many wealthy business owners are increasingly confident about their finances. According to the latest survey from Northern Trust, half of high-net-worth business owners are feeling better off in their personal financial situation than five years ago. In addition, 69 percent are confident they will achieve their personal financial goals.

At the same time, wealthy business owners are focusing both on the outlook for their businesses and their families’ financial security.

When looking for specialized services:
  • Seventy-two percent of wealthy business owners want tax planning advice and 60 percent seek estate planning counsel.
  • Nearly half (48 percent) are looking for financial and investment planning assistance.

The data comes from Northern Trust’s Wealth in America survey that provides insights into the financial attitudes of wealthy Americans.

“In the depths of the recession, business owners had a great deal of fear about the financial impact of the downturn on their families,” said Mary Ann Sisco, Senior Vice President for Wealth Management at Northern Trust. “As the economy improves, and merger-and-acquisition activity strengthens, we see growing confidence. Business owners are looking to the future and considering succession and retirement planning.”

Advisors aid in future planning

In managing their finances, wealthy business owners are hands on and knowledgeable but still rely on advice from a trusted advisor.
  • Only 15 percent of high-net-worth business owners make financial decisions on their own.
  • Fifty-five percent rely on an advisor for some or all financial decisions they make.
  • On average, they have four financial relationships, although nearly two in three (64 percent) say they prefer to work with one financial institution.

“Our clients are asking many more questions about how to plan for the future, and that’s a good sign,” said Sisco. “High-net-worth business owners want to be prepared. They’re looking for high quality advice to help them make the right decisions, especially when it comes to transitioning or selling their business.”

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