The Domination of the Mass Affluent

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America is divided into social groups based on the income and financial assets of its citizens. One of the groups which forms part of the social system are the “mass affluent.” The mass affluent are portrayed as people who make more than the mass market, but less than one million. Mass affluent households generally hold from 250,000 to 1 million in income and financial liquid assets. More than 13 million households in the U.S. are mass affluent accounting for 11 percent of all U.S households (Nielsen.com).The mass affluent are the largest group part of the wealth management segment. The mass affluent social group falls between the middle class and the wealthiest of consumers. The typical mass affluent consumers is usually white, married, holds a white collar job and lives in a two income household with one child. The mass affluent are characterized as individuals who live a distinct lifestyle compared to the rest of the consumer market when it comes to financial preferences and media consumption. This social group lives in the suburbs, are empty nesters and form part of the baby boomer generation. Consumers part of the mass affluent hold white collar jobs in finance, business management and hold multiple investment accounts. Well-educated and very sophisticated these consumers do not classify themselves as rich. These individuals do not classify themselves as rich but have multiple investment accounts including 401k, IRAs, and CDs. The typical mass affluent consumer does not take many shopping trips but spends more money on each trip than the average customer (Nielsen.com). Two thirds of the mass affluent are 55 years old and older which is why so many are turning to IRAs. The mass affluent social group with approximately 22 mill...

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...ear price and communication. If the financial services firms focus on providing special services to the mass affluent including bundles, the mass affluent will begin to take part in financial services at an even higher rate than the affluent. Banks must offer proper services and advisory services for which the segment is willing to pay for without feeling ripped off. Holding the 43 percent of the world’s wealth the mass affluent are underserved and deserve their time to have the same services offered in the banking industry as the mass affluent. If the banking industry provides outstanding services to the affluent, the American social system should not hinder the mass affluent segment from obtaining financial advice. It is time for a change in the American banking industry and the mass affluent are the future of the movement for an affordable lifestyle for everyone.

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