Archive for February, 2013

Multimillionaires Have “Financial Personas” Too

Thursday, February 14th, 2013

I’ve always assumed that in general multimillionaires have a pretty good handle on their financial plans. They know what financial vehicles they need, when to buy, when to sell and how to shelter income from tax exposure. They have their insurance needs and estate plans covered. They’re rich and they know what they’re doing, right?

Wrong. A recent survey among individuals with at least $3 million in investable assets, found quite the opposite. Trusts among the wealthy are underused. Less than half of all young millionaires have comprehensive estate plans. Many of the wealthy are not adjusting their taxable estates in accordance with changes in tax laws. Nearly all express doubts about their understanding of — or ability to manage — risk tolerance.

When making investments, emotions among multimillionaires are not unlike anyone else with some money to invest. They range from feeling independent and smart to nervous and overwhelmed. Some take comfort in conservative wealth preservation strategies while others take on the risk of growth strategies.

While preserving the continuity of family wealth remains important across all generations, the survey reveals that no generation of wealthy Americans is planning as well as it could be. The good news for financial services marketers is that today’s younger generation of millionaires believes in the value of financial advice and planning. Many are establishing financial plans to cover long-term care for their parents as well as themselves. They also believes it is more important to leave a financial inheritance to their children than do their boomer parents.

Financial Service Providers — banks, investment advisors, attorneys, tax planners, online investment websites — will be glad to hear that this new generation believes that both they and their children will benefit from discussions with a financial professional.

Financial planners can target wealthy prospects by income and net worth data, but for better results, it’s helpful to align the types of products and services offered with the type of financial persona your prospects exude. First Manhattan Consulting Group (FMCG) has consulted for leading private equity firms, insurance carriers, regional and national brokerages and the largest banks. The firm has conducted extensive research into the many personas of the wealthy and has developed code to apply these personas to outside files.

Our match of Wealth Window with FMCG data resulted in some very illuminating results. First off, according to FMCG, individuals on the Wealth Window database index among the highest in the nation for investable assets, bank deposits, and credit scores. That tells us our philosophy in using the multiple sources of data we incorporate into the database is working.

The match then sorted each Wealth Window investor into various targetable FMCG personas such as


This is the type of information that is critical in making that first impression, whether by mail, email, telephone, or in person. We call this data Predictive Insights: Financial Market Personas. It is available for use in financial direct marketing campaigns and it has the power to make the difference in a campaign’s positive or negative ROI.



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