Key Findings from the Boa High Net Worth Study
The Bank of America Institute publishes its high net worth study annually, analyzing anonymized financial data from clients with investable assets above a defined threshold. The latest report highlights a continued rise in average account balances among affluent households, driven by strong equity market performance and concentrated positions in technology stocks. The study also notes that a significant portion of these clients maintain liquid reserves equivalent to several years of living expenses, a pattern consistent with prior editions of the research.
According to the study, the median age of high net worth clients has shifted slightly younger, with a growing share of entrepreneurs and tech-sector executives in the top asset brackets. The report emphasizes that concentrated stock positions remain a dominant feature of these portfolios, with a notable share of clients holding employer equity above risk-tolerance guidelines. The findings also point to an increased use of direct indexing and tax-efficient strategies, as reflected in the growing share of assets managed through separately managed accounts rather than traditional mutual funds.
Asset Allocation and Investment Behavior
Within the Boa high net worth study, asset allocation data shows a heavy tilt toward equities, with fixed-income allocations remaining below historical norms for this client segment. The study documents a persistent preference for individual stocks over collective investments, with technology, healthcare, and financials comprising the largest single-name exposures. Alternative investments, including private equity and hedge funds, account for a modest but growing share of total assets under management for these households.
The study also tracks charitable giving and philanthropic commitments, noting that a majority of high net worth clients have established donor-advised funds or private foundations. These clients often integrate tax-loss harvesting and charitable remainder trusts into their portfolio strategy, as detailed in guidance from the Internal Revenue Service on qualified charitable distributions and capital gains treatment.
Demographic Shifts and Wealth Transfer Planning
Demographic data in the latest Boa high net worth study shows an increasing concentration of wealth among households in the West Coast and Northeast, with a notable rise in first-generation wealth builders. The study highlights that a growing share of clients are under the age of 40, many of whom accumulated wealth through startup exits, equity compensation, and real estate investments rather than traditional inheritance paths.
Wealth transfer planning remains a central theme, with the study reporting that a large percentage of high net worth clients have updated their estate documents in recent years to reflect changes in tax law and family structure. The report also notes rising interest in dynasty trusts and grantor retained annuity trusts, strategies that are often discussed in resources provided by the Securities and Exchange Commission on private placement offerings and accredited investor definitions.
Methodology and Data Scope
The Boa high net worth study draws on aggregated, anonymized account data from Bank of America's private banking and wealth management divisions. The methodology focuses on households with investable assets exceeding a specific threshold, excluding primary residence equity and certain illiquid business interests from the core metrics.
Data Sources and Limitations
The underlying data is sourced from custody and brokerage accounts managed through Bank of America, Merrill, and related entities. As with any institutional dataset, the study reflects the behaviors of a specific client base and may not be fully representative of all affluent households in the United States.
Relevance to Financial Advisors
Financial advisors use the Boa high net worth study to benchmark portfolio construction, risk tolerance profiles, and client engagement strategies against peer households with similar asset levels.
Comparison with Other Wealth Research
The findings are often compared with reports from UBS, Credit Suisse, and Knight Frank, which track similar metrics across different banking and private banking client bases.