Ultra-Rich Use Internet For Financial Dealings.
The study, by Spectrem Group, found that nearly three out of four people worth at least $5 million have used the Internet to obtain investment information in the past year. Only 52% of those with a net worth of $1 million to $5 million went online for the same reasons.
Also, 22% of people worth $5 million or more had done banking online, while 18% had traded securities online and 8% had used the Internet to purchase or redeem mutual-fund shares.
The survey looked at 600 of the country's estimated 596,000 households with $5 million or more in net worth. The consumers involved in the survey had an average net worth of more than $25 million, investable assets of $19 million and annual income that exceeded $2.5 million. The mail survey targeted a sample of 430,000 people who reported insider trading to the Securities and Exchange Commission.
When asked to list their most important reasons for banking or investing online, 43% said convenience; 37% said both the ability to better track investments and to save time; and 27% said it was the added control over their investments.
But the Internet won't replace financial advisers for the ultra-rich, said David Thompson, Spectrem's research program manager.
"Although they claim less need of hand-holding, we found that nearly 70% of our sample continue to use a professional adviser, who is most likely to be a full-service broker or an independent adviser," Thompson said in a statement.
A consumer survey by Quicken-Insurance and the Electronic Financial Services Council found that 25% of households with Internet access would use the Internet to shop for insurance.
|Printer friendly Cite/link Email Feedback|
|Comment:||Ultra-Rich Use Internet For Financial Dealings.|
|Article Type:||Brief Article|
|Date:||Sep 1, 2000|
|Previous Article:||Insurers Join in Capital Infusion Of Web-Based Benefits Firm.|
|Next Article:||Reliance: Leucadia Walked Away.|