HNW Clients’ 2023 Financial Goals

Clarfeld/Citizens Private Wealth recently polled 200 high-net-worth investors (defined as with $2 million or more of investable assets), asking about their spending and investing plans in the year ahead as well as their top financial goals. 

Key Findings

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According to a press release about the survey, included among the key findings was that a majority (80%) of those surveyed plan to spend the same amount (51%) or more (29%). The respondents indicated they are most likely to allocate additional resources to travel (51%), their businesses and/or franchises (13%) and real estate (10%) in the new year. Additionally, 87% believe the United States is currently in, or will soon enter, a recession. The respondents cited inflation (31%), market volatility (27%) and rising interest rates (11%) as factors that will have the greatest negative impact on their financial portfolios.

Charitable Gifts

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Nearly three quarters of those surveyed (72%) plan to make a charitable donation at the end of the year. The primary reason for donating is altruistic, as 78% are giving as part of their regular charitable giving. The tax benefits of giving also motivate 41% of respondents to donate this year. 

Based on the survey results, younger generations may not get the big financial gifts they expected over the holidays. Only 48% of the respondents said they plan to give a financial gift to the next generation this holiday season. Of those who do plan to give, 62% plan to gift a trust or contribution to a trust, 45% plan to make a charitable donation in their name, 35% plan to gift shares of stock and 25% plan to gift non-fungible tokens/digital assets. 

Planning Strategies

In 2023, the respondents plan to use these strategies: real estate investment trusts (20%); revocable trusts (17%), non-revocable trusts (11%); and spousal lifetime access trusts (10%). Additionally, 40% of respondents want to invest in alternatives next year. This interest was highest among millennials (63%) compared to their Gen X and baby boomer counterparts, at 52% and 29%, respectively.  

More Thoughtful Approach

According to Joan Bozek, director of trust services at Clarfeld Citizens Private Wealth, “The study confirms that in periods of volatility, wealthy Americans look to refine their values and goals and look to their advisors for help. We’re seeing priorities shift to include spending for personal enrichment, such as travel, and a more meaningful engagement with family and philanthropic interests. Our observations at Clarfeld are that this results in a more thoughtful approach to legacy planning, including the use of customized and flexible trusts.”