Bel Air Investment Advisors Releases Survey of Next Generation Wealth

"Bel Air Investment Advisors Releases Survey of Next Generation Wealth," by Stefan Pollack and Monica Ballin, The Pollack PR Marketing Group.

Nearly Two Out of Three High Net Worth Inheritors Are “Very
Concerned” About Growing Wealth, According to Survey Conducted at Bel Air’s Next Generation Conference

LOS ANGELES – May 5, 2010 – Bel Air Investment Advisors LLC, a leading independent wealth management advisory firm to high net-worth individuals, families, trusts and foundations, released today key findings from a survey conducted at a Next Generation wealth conference.

The survey, which polled nearly eighty attendees made up of the next generation of Bel Air’s high net worth clientele at the firm’s Next Generation Conference, held recently in Indian Wells, Calif., found that nearly all respondents (92 percent) show some or significant concern for growing wealth (64 percent “very,” 28 percent “somewhat”). Over half of respondents (52 percent) were “very concerned” about maintaining their wealth.

Additional findings included the following:

Wealth transfer issues:

On the issue of wealth transfer, a third (33 percent) of respondents were “very concerned,” and over half (58 percent) were “somewhat concerned.”

Family legacy issues:

When asked about family legacy issues, over 80 percent showed some level of concern (39 percent “very,” 44 percent “somewhat”).

Impact of wealth on children:

On the impact of wealth on children, over half (54 percent) said they were “very concerned,” 29 percent said they were “somewhat concerned,” with less than 20 percent indicating neutrality on the subject or no concern.

Philanthropy:

Over half of respondents’ families were “significantly” involved in philanthropy (54 percent), while 37 percent were “moderately” involved in philanthropic causes. Almost all respondents (96 percent) planned to be “moderately” to “significantly” involved in philanthropy in the future.

Impact of wealth on family:

When asked to identify with the statement, “Wealth has had little or no impact,” 58 percent found the statement to be “very untrue,” 29 percent felt it was “somewhat untrue,” 8 percent was neutral and 4 percent felt it was “somewhat true.”

Wealth as financial resources for personal and professional interests:

When asked to identify with the statement, “Wealth provides financial resources to pursue personal and professional interests,” 84 percent found the statement to be “very true,” while the remaining 16 percent said it was “somewhat true.”

Wealth as source of discomfort in high-net-worth families:

When asked to identify with the statement, “Wealth has created discomfort in the family,” 60 percent found the statement to be “somewhat true,” 16 percent were neutral on the topic, 8 percent felt it was “somewhat untrue” and 16 percent said it was “very untrue true.”

Inheritors living up to the success of parents or previous generation:

When asked to identify with the statement, “Wealth has made it hard to live up to the success of parents or previous generations,” the majority (54 percent) found this statement to be “somewhat true,” 4 percent found it to be “very true,” 17 percent were neutral, 17 percent found it to be “somewhat untrue” and 8 percent found it to be “very untrue.”

Investment interest:

When asked to rank a list of investment topics most interested in, the majority of participants chose as their chief interest alternative investments (green, private equity, hedge funds, etc.), followed by emerging markets, U.S. equities, fixed income and international equities.

Market predictions:

In a quick poll of the NextGen attendees at the opening of the conference, when asked, “In next twelve months, what will be higher or lower?” 96 percent of the attendees indicated that stocks will be higher, nearly all NextGen attendees said there would be higher interest rates resulting in lower bond prices, 75 percent indicated that oil prices will be higher and that gold prices will be lower, 87 percent said that residential real estate prices will be higher and 93 percent said that commercial real estate prices are heading lower. When asked about other assets such as contemporary art, 88 percent of the attendees said prices will be higher.

Thoughts on energy sector:

When examining the future of energy investing and the role of renewables, when asked, “If they had to pick one future energy goal, what would it be?” 30 percent of the attendees indicated that the goal was either lower prices and lower greenhouse gas emissions or to maintain system reliability. 70 percent of attendees indicated that the main goal for energy investing was energy independence.  According to NextGen conference presenter, Doug Kimmelman, senior partner at Energy Capital Partners, “One take away that could be extrapolated is that the next generation of wealth are big proponents of electric vehicles, which would also call for greater need for greater investment in battery technology.”

“Our Next Generation Conference provided a rare opportunity to explore the daily issues and concerns of the next generation of wealthy families,” said Todd Morgan, senior managing director. “Wealth transfership concerns, family legacy anxieties, generation wealth transfer impact on children, plans for charitable giving and philanthropy are all issues that we were able to shed light on and bring into the discussion.”

The purpose of the conference was to educate and to help prepare Bel Air Investment Advisors families to preserve, build and transition wealth from one generation to the next.

Included in the conference were sessions that focused on investing fundamentals, fixed income investing, wealth and estate planning and philanthropy.

Among the key speakers at the conference were Charles Pohl, chief investment officer at Dodge & Cox; Judy Belk, senior vice president at Rockefeller Philanthropy Advisors; Doug Kimmelman, senior partner at Energy Capital Partners; and Penny Foley, portfolio manager and group managing director at Trust Company of the West. The keynote address was delivered by NBA hall of famer Jerry West.

About Bel Air Investment Advisors

Established in 1997, Bel Air Investment Advisors LLC is a leading independent wealth management advisory firm, providing financial advisory, and asset and investment management services to exclusively high net worth individuals, families, trusts and foundations with $20 million or more in investable assets.  Headquartered in Los Angeles, Calif., Bel Air services over 250 families across the United States and manages and oversees more than $4 billion in assets, including private foundation relationships.  Known for its philanthropic leadership in the community, Bel Air’s professionals serve on a variety of charitable boards.  For more information, visit www.belair-llc.com.

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 Bel Air Investment Advisors Releases Survey of Next Generation Wealth