Reallocating US household wealth: investment trends among affluents and high-net-worths
Reallocating US household wealth: investment trends among affluents and high-net-worths
Despite the stresses of market volatility and the rising cost of living, the balance sheet of US household wealth paints a promising picture for 2026. Investors are more responsive to rate changes, some taking action to shield their assets against inflation while others pursue greater returns with advisory support.
Aggregate US household wealth has grown considerably over the last decade. Total financial assets at the end of 2024 were close to $74 trillion, compared to $42 trillion in 2014 (adjusted for inflation).
While all asset categories have benefited to some degree, growth in retail investments has consistently outpaced the steady expansion of retirement savings, with stocks, bonds, and mutual funds claiming a larger market share at the expense of 401(k) plans, IRAs, and SEPs.
These dynamics are largely influenced by the households where wealth is concentrated:
- Affluent households with $500,000 – $3,000,000 in total financial assets or $100,000+ in annual income, representing 37% of households and 50% of aggregate market wealth.
- High-net-worth households (HNW) with over $3,000,000 in asset holdings, accounting for 3% of the population and a hugely disproportionate 45% share of market value.
Although affluent and HNW households now command a similar share of aggregate market wealth (50% and 45% respectively), our data draws out key distinctions in their investment decisions. Providers offering wealth solutions should consider the following when tailoring their propositions to capture current opportunities and attract the upcoming generation of investors.
Affluent investors reassess long- and short-term priorities
The last two years were challenging for affluent households, as their intentions to invest and save were restricted by their rising need to manage financial obligations. Liquidity and easy access to funds are of growing importance to affluent households as providing for ‘rainy day’ emergencies has become a central financial goal.
Recent reallocation activity reveals the dilemma these households face. Affluent gains in retail investments during the pandemic were largely reassigned to retirement savings over the last 2 years, encouraged mainly by concerns about the impact of inflation on retirement income (up from 74% in 2020 to 83% in 2024). The real dollar value held by affluents has remained stable, though, leaving affluent investors uncertain about how to balance their short and long-term needs against inflation.
Most affluents are still confident that their investments are sufficiently diversified, but only 31% consider themselves sophisticated investors (compared to 71% of high-net-worth investors). Combined with the fact that 3 in 5 affluent investors want help selecting financial products, there is ample opportunity for institutions to take a more overt role in guiding investor activity.
HNWs grow wealth through mutual funds and high-yield CDs
By contrast, high-net-worth households have taken the last few years in their stride. Their retail investment wealth continues to climb, indicating a growing focus on actively managed wealth solutions into 2026.
Due to the contributions of high-net-worth households, mutual funds have overtaken individual traded stocks as the primary vehicle of retail investment wealth; high-net-worth households invest approximately $8 trillion of the $11 trillion held in mutual funds across the entire market. While multiple factors have prompted the expansion of mutual funds, high-net-worths are unique in their likelihood to reinvest and buy new shares, greater appetite for investment planning advice, and propensity to take up mutual fund relationships outside their primary investment firm. All of these are in line with a more diversified and co-operative approach to portfolio management.
Likewise, CDs and high-yield, digital-only accounts represent a growing share of the overall savings balance, with 37% of high-net-worth households owning a CD in 2024 compared to 27% in 2022. Our data shows that wider adoption is partly inspired by investors becoming more responsive to rate changes, but there is some nuance between these options. The financial goals of CD owners tend to emphasize the transfer of wealth to dependents, whereas digital-only account holders have more specific, tangible goals in mind – saving for vacation, buying a car, funding a home purchase, etc.
The appeal of these savings solutions speaks to the shift towards active investment management, with consumers showing greater willingness to shop around for tailored products.
Strategic imperatives for wealth providers
Whether through active investment relationships or dedicated savings accounts, the direction of investment behavior is increasingly determined by those who want deeper engagement from their financial institutions.
1. Commit to customer growth
Affluent households want greater income security. Cross-selling CDs or high-yield savings to those making additional retirement contributions would highlight the provider’s capacity to support customers throughout their wealth journey.
2. Strengthen advisory services
Advisors should equip themselves with market insights that support customers with long-term planning, and firms should also explore self-service research tools to better integrate the brand into investors’ day-to-day decision-making.
3. Promote flexible solutions
Savers and investors are more dynamic and willing to move funds outside of primary deposit relationships to achieve financial goals. To have a distinct edge, institutions need to compete both through rates and tailored financial advice—platforms that can facilitate streamlined management are most likely to succeed.
On the surface, market conditions leading into 2026 may appear different to the end of 2024, with the impact of AI and tariffs posing new questions, but the fundamental concerns shaping consumer behavior still hold true. Wealth offerings that can leverage the shifting allocation of market wealth are the best answer for institutions when evaluating how to maintain strong acquisition and customer retention.
Find out more
These insights are from MacroMonitor, the largest and most comprehensive survey of US financial behavior. For more information on how RFI Global’s data and expertise can support your strategic initiatives and strengthen your wealth offering, please get in touch.
Frequently asked questions about branches
Q: How much has US household wealth grown in the last decade
A: RFI Global data shows that US household wealth increased from $42 trillion in 2014 to nearly $74 trillion by the end of 2024, adjusted for inflation.
Q: What investment trends are emerging among high-net-worth households?
A: HNW investors are prioritizing retail investments like mutual funds and high-yield savings, with growing interest in advisory-led solutions (Source RFI Global).
Q: How are affluent investors balancing short- and long-term financial goals?
A: Affluent households ($500,000 – $3,000,000 in total financial assets) are prioritizing liquidity for emergencies while increasing retirement contributions, creating tension between immediate access and long-term planning.
Q: What should financial institutions do to meet evolving investor needs?
A: RFI Global data shows that providers should strengthen advisory services, promote flexible savings solutions, and support customer growth through tailored financial guidance.
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