Silver Lining:Real Estate
October 2, 2008, 2:09 pm
Wealthy Are Afraid They’ll Run Out of Money
It’s not just the middle class that has money worries. Even the affluent are worrying about running out of cash.
American Express Publishing and Harrison Group
According to a new survey from American Express Publishing and the Harrison Group, nearly half of respondents with incomes of $250,000 or more agreed with the statement that “I worry that at some point I could run out of money.” That’s up from about a third in April.
Fully 69% agreed with the statement that “The recent real estate and banking crisis has affected my sense of financial security.”
Of course, $250,000 is only “Obama wealthy.” And running out of money “at some point” is a long time horizon. Yet the survey suggests that even high-income earners are cutting back their spending for fear of what the financial future might bring. Fully two-thirds say that they are “looking closely at every spending category to see where I can save.”
The categories most likely to be hit hardest: SUVs, jewelry, handbags, leather goods, and private jet usage. Areas not as affected: hybrid cars (the new status symbol), children’s clothing and business travel.
Restaurant owners should take heart, however. The survey says that when it comes to splurging, more than half of the group cited restaurants It also shows that when it comes to splurging, eat-in restaurants and travel top the list. Home décor and fine liquor ranked near the bottom.
Another silver lining: real estate. The survey found that three quarters of the respondents cited real-estate as “an opportunity,” compared with about a quarter who cited it as a “risk.” Fully 30% are in the market to acquire real estate this year.
