A Problem: Financial Advice by Birthday

With a variety of interests, behaviors, experiences, personalities, and attitudes about money, we manage finances, invest, and save. Even if we are not directly responsible for financial management, we are involved via spending or generating income. How do financial institutions and advisors provide guidance? They divide us up into groups by our age, gender, net worth, income, and maybe some less-than-ideal measure of risk tolerance. The focus on Millennials is a great example of this: making[…]

Let Research Guide Spending Advice

Why do we spend money? Why do we buy things we don’t need or items that are outside of what we can afford? What advice should we heed if we’re trying to improve our ability to walk out of a store with only what we intended to buy? Some argue that gender, ethnic group membership or socio-economic status alone can explain differences in shopping and spending. Like with other areas of research (including affluent market research),[…]

Skeptics and Wealth

Distrust and caution are the parents of security. – Benjamin Franklin Data Points measures skepticism in relationship to one’s overall Wealth Potential™: it is positively related to net worth regardless of age, income and percentage of wealth inherited. So, those who have the greatest potential for accumulating wealth are also those who will most likely question everything with respect to how they (or you) manage and invest money. In one of our latest studies, within a sample of high[…]

Segmenting Affluent Groups: Differences Matter

What’s inside matters How does your organization segment its clients? Most often they are segmented by amount of investable assets, net worth levels, and perhaps age, income, and/or risk tolerance levels. What’s missing? A guide to their competencies for building wealth. As long as I can remember, my father has given big, gold-wrapped boxes of chocolates for thank you/end of year presents to his business associates. When I was growing up, as a treat, he would[…]