Lifestyles of High Net Worth Individuals - US - August 2008

TABLE OF CONTENTS

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Snapshot of HNWIs
• Recessionary fears affect HNW households
• Males control investment decisions
• Females make purchasing decisions
• Green investing is in
• Green consumerism
• Mixed attitudes towards luxury goods
• Travel and food are popular
• Home improvements slow with the economy
• HNWIs still spend on home furnishing
• Demographics
• Key points
• More Americans become millionaires
  • Figure 3: Number of millionaire households, 2003-07
• Wealth increases dramatically
  • Figure 4: U.S. HNWI wealth, 2002-07
• Where they live
  • Figure 5: Ten counties with the highest number of millionaires, 2007
• HNWIs by education
  • Figure 6: HNWIs by education, by degree of wealth, 2008
• HNWI by occupation
  • Figure 7: Occupations of HNWIs, by degree of wealth, 2008
• HNWIs by age and work status
  • Figure 8: HNWIs by age and work status, by degree of wealth, 2008
• Affluent are not just one segment
  • Figure 9: Characteristics of the affluent, by affluent segments, 2002
• Who manages their investments
  • Figure 10: Primary financial advisors of mass affluents using a professional advisor, 2000
• Snapshot of investments held by HNWIs
  • Figure 11: Investment vehicles of HNW households, 2008
• Index of Expenditures
  • Figure 12: Index of average expenditures by income per consumer unit, 2008
• Passion Investments
  • Figure 13: Purchase of passion investments, 2008
• Attitudes towards Self
• Key points
• Sense of self informed by position in society
  • Figure 14: Attitudes towards self, June 2008
• Males more confident, happy with their careers, and willing to take risks
  • Figure 15: Attitudes and lifestyle, by gender, June 2008
• They have free time but dislike obligations of their position
  • Figure 16: Attitudes and lifestyle, by gender, June 2008
• Financial Planning and Real Estate
• Key points
• HNWIs call their own shots
  • Figure 17: Financial planning, June 2008
• Males manage the money
  • Figure 18: Financial planning, by gender, June 2008
• HNWIs trust financial advisors but are conservative
  • Figure 19: Attitudes towards financial advisors, risk, and entrpreneureal status, June 2008
• Real estate is an important investment vehicle
  • Figure 20: Share of household net worth invested in real estate, June 2008
• Economic Concerns
• Key points
• They spend less during recessions
  • Figure 21: Economic concerns, changes in spending and investment habits, June 2008
• Females are more frugal
  • Figure 22: Economic concerns, changes in spending and investment habits, by gender, June 2008
• Attitudes towards Work
• Key points
• Most don't work outside the home
  • Figure 23: Time spent working outside the home, June 2008
• HNWIs work at home
  • Figure 24: Time spent working at home, June 2008
• On permanent vacation
  • Figure 25: Total time spent working, June 2008
• Home Improvement
• Key points
• About $2K a year on home improvements
  • Figure 26: Home improvement expenditures by high-income households, July 2008
• HNWIs hire pros
  • Figure 27: Who performed home improvements for high-income households, Fall 2007
• HNWIs remodel frequently
  • Figure 28: Spending on home improvement items by high-income households, Fall 2007
• Kitchens and bathrooms remodeled often
  • Figure 29: Spending on home improvement items by high-income households, Fall 2007
• Homes are well maintained
  • Figure 30: Spending on home improvement items by high-income households, Fall 2007
• Structural elements replaced even more infrequently
  • Figure 31: Spending on home improvement items by high-income households, Fall 2007
• Home Furnishing
• Key points
• HNWIs likely to buy big-ticket household items
  • Figure 32: Household furnishings bought by high-income households in past 12 months, Fall 2007
• HNWIs frequently redecorate
  • Figure 33: Household furnishings bought by high-income households in past 12 months, Fall 2007
• General Spending
• Key points
• Travel and books are more popular than CDs
  • Figure 34: Frequency of buying music, books, and travel, June 2008
• $1K to $10K: the sweet spot for travel
  • Figure 35: Personal and employer spend on travel, June 2008
• Eating habits are similar and different to Americans
  • Figure 36: Frequency of buying gourmet foods and dining out, June 2008
• Furniture and dishes purchased frequently
  • Figure 37: Frequency of buying furniture, household appliances and dishes, June 2008
• Green products and technology are in (to varying degrees)
  • Figure 38: Frequency of buying green products and technology, June 2008
• Clothing and Footwear
• Key points
• Female HNWIs purchase clothing and footwear
  • Figure 39: Frequency of buying clothing and footwear, by gender, June 2008
• HNWIs purchase clothing and footwear frequently
  • Figure 40: Frequency of purchasing clothing/footwear, and sports/athletic products, June 2008
• Luxury Purchases
• Key points
• Perfumes, cosmetics, clothing, watches, and cars are popular items
  • Figure 41: Luxury product ownership, June 2008
• Stereotypes confirmed: females prefer perfumes; males prefer cars
  • Figure 42: Luxury product ownership, by gender, June 2008
• Luxury brands on the rocks?
  • Figure 43: Reasons for not owning/buying luxury products, June 2008
• Price is a stumbling block for men
  • Figure 44: Reasons for not owning/buying luxury products, by gender, June 2008
• Attitudes towards the Media
• Key points
• Time-delayed television not as popular as real time viewing
  • Figure 45: Time spent on traditional media, by type of media, June 2008
• Internet usage is low
  • Figure 46: Time spent on online media, by type of media, June 2008
• Video chatting is out; email is in
  • Figure 47: Time spent on social networking, by type of service, June 2008
• Cell phones and land lines are in; smart phones are out
  • Figure 48: Time spent on the phone, by type of phone, June 2008
• Advertising and Promotion
• Luxury brand spends
  • Figure 49: Top luxury advertisers, ad spend, 2006-07
• Advertising channels that reach HNWIs
• Celebrities and high-powered directors are in
• Fusion cultural events: a new trend to watch
• Analysis of commercial spots
• Freedom
  • Figure 50: Acura television ad, 2007
  • Figure 51: Lexus television ad, 2007
• Empowerment
  • Figure 52: Rolex television ad, 2007
  • Figure 53: Cadillac television ad, 2007
  • Figure 54: Elizabeth Arden television ad, 2007
• Vanity
• Figure 55: Mercedes-Benz television ad, 2007
  • Figure 56: Cadillac Escalade television ad, 2007
  • Figure 57: Dolce & Gabbana television ad, 2007
• Fantasy
  • Figure 58: Calvin Klein television ad, 2007
  • Figure 59: Channel television ad, 2007