Magazine article American Banker

Cash-Equivalent Investments Found to Be Mainstay of Rich

Magazine article American Banker

Cash-Equivalent Investments Found to Be Mainstay of Rich

Article excerpt

Cash-equivalents are the most commonly held investments of affluent Americans, according to a U.S. Trust Co. study.

About 86% of the people surveyed for the study hold certificates of deposits and money market funds and accounts.

As for noncash investments, 70% said that they held growth stocks, 61% held blue chip stocks, and 56% held municipal bonds.

The least favored investment was gold, held by 19% of the surveyed households.

Second in a Series

The survey of 151 people was conducted by New York-based Financial Market Research inc. The firm interviewed members of households with adjusted gross incomes of at least $200,000, or net worths of at least $3 million.

It is the second U.S. Trust study in a series looking at affluent Americans.

An average portfolio, according to the survey, would have 29% in equities, 21% in bonds, 18% in cash, and 32% in real estate, futures, options, and other investments.

In terms of safety, U.S. securities were rated the safest investment, while international stocks and bonds were viewed as the riskiest.

Affluent investors see themselves as risk averse compared with "other people." Within the group, 43% considered themselves less willing to take risks, 27% described themselves as average risk takers, and 30% described themselves as more willing to take risk than the average investor.

"The real surprise was that these people describe themselves as risk averse but made their money through a private business or real estate," said Frederick B. …

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