Where the Wealthy Plan to Spend, Invest More in 2023

Besides overall allocation changes, a fifth of participants said they plan to use REITs in the new year, while 17% will employ revocable trusts, 11% irrevocable trusts and 10% spousal lifetime access trusts.

In addition, 40% of the wealthy Americans surveyed said they want to invest in alternatives next year, including 63% of millennials, 52% of Gen Xers and 29% of baby boomers.

Financial Gifting

Some three-quarters of wealthy respondents said they plan to make a charitable donation at year-end. For 78%, the primary reason is altruistic, as they will be giving as part of their regular philanthropy. Forty-one percent also said they will be motivated to give by the tax benefits of doing so.

Interestingly, less than half of participants plan to give a financial gift to the next generation this holiday season. Of those who do plan to do so, 62% said they would gift a trust or contribution to one, 45% will make a charitable donation in the family member’s name, 35% will gift shares of stock and 25% plan to gift NFTs and other digital assets.

Wealth Building

As to how they hope to reach their financial goals and objectives, 62% of respondents said they are pursuing a strategy of steady income and wealth building. About a fifth each said effective tax planning and comprehensive estate planning would support their efforts.

Only 16% of wealthy Americans in the sample said they have no intention of meeting with any of their advisors before the end of 2022. Of those who do expect to meet with advisors to plan for the year ahead, 64% are prioritizing meetings with wealth advisors, 38% with tax advisors and 20% with estate planners.

“If market instability of the past few years has a silver lining, it’s the importance of planning comprehensively for the unexpected,” Ruffalo said.

“It’s important for all consumers to consider working with a qualified wealth advisor who considers their whole financial picture — from wealth accumulation goals to effective tax strategies — as they plan for 2023 and beyond.”