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February 20, 2014updated 04 Apr 2017 2:29pm

Vacations and home improvement top ultra-high-net-worth expenditures: Spectrem

Vacation, home improvements and automobiles are where ultra-high-net-worth investors spent the most money in terms of discretionary spending over the past 12 months, according to a Spectrem study of wealthy investors - Asset Allocation, Product Ownership and Perception of Providers.

By Verdict Staff

Vacation, home improvements and automobiles are where ultra-high-net-worth investors spent the most money in terms of discretionary spending over the past 12 months, according to a Spectrem study of wealthy investors – Asset Allocation, Product Ownership and Perception of Providers.

The study indicated that 48% of ultra-high-net-worth investors spent at least $10,000 on vacation or leisure travel. Eleven percent spent at least US$25,000 on getting away from it all.

Thirty-nine percent of ultra-high-net-worth investors spent at least US$10,000 on home improvements in the past 12 months, and 12% spent at least US$25,000 on their abode. Thirty-two percent spent at least $10,000 on automobiles.

Twenty-seven percent of ultra-high-net-worth investors spent at least US$10,000 on charitable contributions. Twelve percent admit to spending at least US$10,000 on clothing.

In contrast, 90% of ultra-high-net-worth investors spent less than US$10,000 annually on household staff. And despite the perceptions of the "1%", 30% of the ultra-high-net-worth do not have any household staff.

Seventy-three percent of the wealthiest investors do not gamble. Something the less wealthy should keep in mind?

When it comes to contributing, ultra-high-net-worth investors show more interest in charitable contributions than political ones. While 27% spent at least US$10,000 on charitable contributions, only 3% spent that much on political contributions.

Younger investors are more interested in jewelry purchases than older investors. Thirty-six percent of investors under the age of 45 spent at least US$10,000 on jewelry, and only 16% of investors between the ages of 45 and 54 did so. The percentage dropped to 12% among investors 55 to 64 and 4% among investors 65 and older.

Approximately half of all ultra-high-net-worth investors spend money on collectibles, but the age range is wide. Only 9% of investors 65 and older spent US$10,000 or more on collectibles, while one-quarter of investors aged under 45 spent at least US$10,000 and 9% spent at least US$25,000.

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