Issue 27: 2014

Insights

2014 U.S. Trust
Insights on Wealth and Worth®

The profile of the modern American family is evolving, and it’s changing how wealth affects familial relationships, attitudes and behavior.

» Click here to access your account and more insights.

» Not a client yet? Click here to find an office or have us contact you.

What constitutes a family continues to evolve in the United States. The traditional family — husband, wife and biological children — still predominates, but there are now many variations. Half-siblings, adopted children or stepchildren; divorced, never married or remarried couples; same-sex partners — these are all growing in numbers. A significant result for high-net-worth families, according to the 2014 U.S. Trust Insights on Wealth and Worth® survey, one of the most in-depth studies of its kind, is that wealth planning needs are also growing in complexity.

As Keith Banks, president of U.S. Trust, Bank of America Private Wealth Management, has noted: “Family, whatever it may look like or how it was formed, is a relationship like no other that can be life’s greatest blessing or challenge, depending on the quality of relationships and shared values. Each family member and each generation has distinct needs and perspectives that are commingled and must be considered as part of the wealth planning process.”

The results of the 2014 U.S. Trust Insights on Wealth and Worth® survey also showed that while many families feel generally more financially secure and optimistic about the markets post–Great Recession, they remain wary about the risk of financial losses. Many still have large holdings in the relative safety of cash; and to the extent they are not content with large cash positions, they feel they are missing out on opportunities.

Here are selected insights about the modern family and its wealth planning needs. For more, read the full report at ustrust.com/survey.

For more, read the full report at ustrust.com/survey.

IMPORTANT INFORMATION

Investing involves risk. There is always the potential of losing money when you invest in securities.

Neither U.S. Trust nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Always consult with your independent attorney, tax advisor, investment manager and insurance agent for final recommendations and before changing or implementing any financial, tax or estate planning strategy.

Commodities
Trading in commodities, such as gold, is speculative and can be extremely volatile. There are special risks associated with an investment in commodities, including market price fluctuations, regulatory changes, interest-rate changes, credit risk, economic changes and the impact of adverse political or financial factors. Tangible assets can fluctuate with supply and demand, such as commodities, which are liquid investments, unlike most other tangible investments.

Alternative Investments
Alternative investments are intended for qualified and suitable investors only. Alternative investments are speculative and involve a high degree of risk. Alternative investments such as derivatives, hedge funds, private equity funds and funds of funds can result in higher return potential but also higher loss potential. Changes in economic conditions or other circumstances may adversely affect your investments. Before you invest in alternative investments, you should consider your overall financial situation, how much money you have to invest, your need for liquidity and your tolerance for risk.

Other
Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender. All loans and collateral are subject to credit approval and may require the filing of financing statements or other lien notices in public records. Asset-based and securities-based financing involves special risks and is not for everyone. When considering an asset-based and/or securities-based loan, consideration should be given to individual requirements, asset portfolio composition, and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. For any loan with securities collateral, the securities or other assets in any collateral account may be sold to meet a collateral call as provided in the definitive loan documents and the client is not entitled to choose which securities or other assets will be sold. A complete description of the loan terms will be found in the individual credit facility documentation and agreements. Clients should consult with their own independent tax and legal advisors. Credit and collateral subject to approval. Terms and conditions apply. Programs, rates, terms and conditions subject to change without notice.

The 2014 U.S. Trust Insights on Wealth and Worth® survey is based on a nationwide survey of 680 high-net-worth and ultra-high-net-worth adults with at least $3 million in investable assets, not including the value of their primary residence. Respondents were equally divided among those who have between $3 million and $5 million, $5 million and $10 million, and $10 million or more in investable assets. The survey was conducted online by the independent research firm Phoenix Marketing International in February and March of 2014. Asset information was self-reported by the respondent. Verification for respondent qualification occurred at the panel company, using algorithms in place to ensure consistency of information provided, and was confirmed with questions from the survey itself. All data have been tested for statistical significance at the 95% confidence level.

{% brightcove 3627749355001 %}

What constitutes a family continues to evolve in the United States. The traditional family — husband, wife and biological children — still predominates, but there are now many variations. Half-siblings, adopted children or stepchildren; divorced, never married or remarried couples; same-sex partners — these are all growing in numbers. A significant result for high-net-worth families, according to the 2014 U.S. Trust Insights on Wealth and Worth® survey, one of the most in-depth studies of its kind, is that wealth planning needs are also growing in complexity.

As Keith Banks, president of U.S. Trust, Bank of America Private Wealth Management, has noted: “Family, whatever it may look like or how it was formed, is a relationship like no other that can be life’s greatest blessing or challenge, depending on the quality of relationships and shared values. Each family member and each generation has distinct needs and perspectives that are commingled and must be considered as part of the wealth planning process.”

The results of the 2014 U.S. Trust Insights on Wealth and Worth® survey also showed that while many families feel generally more financially secure and optimistic about the markets post–Great Recession, they remain wary about the risk of financial losses. Many still have large holdings in the relative safety of cash; and to the extent they are not content with large cash positions, they feel they are missing out on opportunities.

Here are selected insights about the modern family and its wealth planning needs. For more, read the full report at ustrust.com/survey.

For more, read the full report at ustrust.com/survey.

IMPORTANT INFORMATION

Investing involves risk. There is always the potential of losing money when you invest in securities.

Neither U.S. Trust nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Always consult with your independent attorney, tax advisor, investment manager and insurance agent for final recommendations and before changing or implementing any financial, tax or estate planning strategy.

Commodities
Trading in commodities, such as gold, is speculative and can be extremely volatile. There are special risks associated with an investment in commodities, including market price fluctuations, regulatory changes, interest-rate changes, credit risk, economic changes and the impact of adverse political or financial factors. Tangible assets can fluctuate with supply and demand, such as commodities, which are liquid investments, unlike most other tangible investments.

Alternative Investments
Alternative investments are intended for qualified and suitable investors only. Alternative investments are speculative and involve a high degree of risk. Alternative investments such as derivatives, hedge funds, private equity funds and funds of funds can result in higher return potential but also higher loss potential. Changes in economic conditions or other circumstances may adversely affect your investments. Before you invest in alternative investments, you should consider your overall financial situation, how much money you have to invest, your need for liquidity and your tolerance for risk.

Other
Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender. All loans and collateral are subject to credit approval and may require the filing of financing statements or other lien notices in public records. Asset-based and securities-based financing involves special risks and is not for everyone. When considering an asset-based and/or securities-based loan, consideration should be given to individual requirements, asset portfolio composition, and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. For any loan with securities collateral, the securities or other assets in any collateral account may be sold to meet a collateral call as provided in the definitive loan documents and the client is not entitled to choose which securities or other assets will be sold. A complete description of the loan terms will be found in the individual credit facility documentation and agreements. Clients should consult with their own independent tax and legal advisors. Credit and collateral subject to approval. Terms and conditions apply. Programs, rates, terms and conditions subject to change without notice.

The 2014 U.S. Trust Insights on Wealth and Worth® survey is based on a nationwide survey of 680 high-net-worth and ultra-high-net-worth adults with at least $3 million in investable assets, not including the value of their primary residence. Respondents were equally divided among those who have between $3 million and $5 million, $5 million and $10 million, and $10 million or more in investable assets. The survey was conducted online by the independent research firm Phoenix Marketing International in February and March of 2014. Asset information was self-reported by the respondent. Verification for respondent qualification occurred at the panel company, using algorithms in place to ensure consistency of information provided, and was confirmed with questions from the survey itself. All data have been tested for statistical significance at the 95% confidence level.