Most Affluent Americans Earn Their Wealth, Feel More Secure During Economic Downturns,...

Most Affluent Americans Earn Their Wealth, Feel More Secure During Economic
Downturns, PNC Survey Reveals
- 'Earners' Worry Less Than Heirs, Take Greater Risks With Investments -

PHILADELPHIA, April 10 /PRNewswire-FirstCall/ -- An overwhelming number of
affluent Americans earned their wealth and are more likely to feel secure
during challenging economic times compared to peers who inherited their money,
according to findings by PNC Wealth Management, a member of The PNC Financial
Services Group, Inc. (NYSE: PNC).
PNC's fourth annual Wealth and Values Survey revealed that 69 percent of
Americans with $500,000 or more in investable assets accumulated most of their
fortune by earning it through work, business ownership or investments. This
compares to the 6 percent who attained their wealth primarily through
inheritance. The remaining 25 percent gained their wealth through a
combination of inheritance and earnings.
Earned Wealth -- Why Worry?
The "earners" are more likely to be concerned about the likelihood of a
recession, yet are more confident they can manage through a downturn, PNC
found. When asked about a recession, 36 percent of earners said it was a
concern, yet 77 percent agreed with the statement "I feel I have a lot of
control over my financial future."
Meanwhile, 27 percent of heirs expressed concern about a recession. Yet,
10 percent fewer -- 67 percent -- expressed confidence about control of their
finances in the future.
The earners also have a higher risk tolerance than heirs. Thirty-nine
percent of earners rate themselves as moderate to risky investors compared
with 21 percent of heirs.
"Among the earned wealthy there is a strong correlation between their
willingness to take risks and confidence that they can recover from a major
negative financial event," said Thomas P. Melcher, executive vice president
and managing director of Hawthorn, PNC Wealth Management's ultra high net
worth division. "Those who inherited their wealth often view themselves as
stewards for future generations. As a result, they tend to be more
conservative in their approach to investing.
"By understanding the psychology of wealth, wealth managers are better
able to deliver holistic advice, the success of which is measured both through
investment returns and appreciation for the lifestyle that wealth allows," he
added.
Other survey highlights include:
-- Happiness is Relative: Three quarters (76 percent) of earners agree "My
financial success lets me feel less stress and worry" as opposed to 50
percent of heirs. And 51 percent of earners agree "As I have
accumulated more money in my life I have become happier" vs. 33 percent
of heirs.

-- More Not Necessarily Merrier: Heirs are more than twice as likely to
say "Having a lot of money brings about more problems than it solves"
(20 percent vs. 9 percent among earners).

-- As Luck Would Have It: More people who have earned their wealth (37
percent) agree with the statement "The money I have made so far has
come from being in the right place at the right time" compared with 25
percent of heirs.

-- Passing it On: Far more earners (68 percent vs. 28 percent) agree with
the statement "Every generation should be responsible for creating its
own wealth." In addition, 25 percent of earners vs. 14 percent of heirs
agree with the statement "I am concerned my children will grow up
entitled." And more earners believe "It is important for children to
learn the value of money through hard work" (92 percent vs. 71
percent).

Survey Methodology
The Wealth and Values Survey is well established as a measurement of the
pulse of the attitudes and thoughts of America's affluent. Previous surveys
have focused on the children of the wealthy in the Growing up Wealthy survey
of 2007; relationships in the Love and Money survey in 2006 and handing down
legacies to future generations in 2005.
The Wealth and Values Survey was commissioned by PNC to identify attitudes
about wealth among high-net-worth individuals, including how it affects their
lives and their needs in managing wealth.
The survey was conducted online within the United States by Harris
Interactive(R) in September and October 2007 among a nationwide cross section
of 1,509 adults (age 18 or older), with annual incomes of $150,000 or above
(if employed), at least $500,000 of investable assets (unless retired) or at
least $1 million of investable assets (if retired).
Data are divided on responses to a question pertaining to the best
descriptions of how respondents accumulated the majority of their financial
assets.
"Earned Wealth-Only" respondents are those who obtained their wealth
exclusively from at least one of the following sources: Occupation, employee
stock options, investments (other than residential real estate),
entrepreneurship, business ownership or sale of a business.
"Inherited/Other Wealth-Only" respondents obtained their wealth
exclusively from at least one of the following sources: inheritance, trust
fund, marriage, legal settlement, residential real estate or another way.
Respondents who indicated that their wealth was from both an "earned
wealth" and an "inherited/other wealth" source are not included when making
comparisons between the Earned Wealth-Only and Inherited/Other Wealth-Only
groups
All data were combined and reweighted when calculating national
statistics. The sampling error for national results is +/- 2.5 percent, for
Earned Wealth-Only +/-3.0 percent, and for Inherited/Other Wealth-Only +/-
10.0 percent, at the 95 percent confidence level
The survey was designed and managed by HNW, Inc. (www.hnw.com), a leading
provider of wealth marketing software and solutions to financial services
companies and intermediaries seeking to capture and serve the high net worth
market.
The PNC Financial Services Group, Inc. (www.pnc.com) is one of the
nation's largest diversified financial services organizations providing
consumer and business banking; specialized services for corporations and
government entities, including corporate banking, real estate finance and
asset-based lending; wealth management; asset management and global fund
services.
This report has been prepared for general informational purposes only and
is not intended as specific advice or recommendations. Information has been
gathered from third party sources and has not been independently verified or
accepted by The PNC Financial Services Group, Inc. PNC makes no
representations or warranties as to the accuracy or completeness of the
information, assumptions, analyses or conclusions presented in the report. PNC
cannot be held responsible for any errors or misrepresentations contained in
the report or in the information gathered from third party sources. Any
reliance upon the information provided in the report is solely and exclusively
at your own risk.
SOURCE PNC Financial Services Group, Inc.

Alan Aldinger of PNC Financial Services Group, Inc., +1-412-768-3711,
alan.aldinger@pnc.com