SMART INVESTOR: It Takes $5 Million To Reach True Financial Independence

ShutterstockIn the minds of wealthy investors, $1 million is nothing to call home about.

According to a UBS survey released today, investors consider $5 million to be the new benchmark for financial success. Once you're past $5 million, you've truly reached financial independence and don't have to worry about how or where you spend it, they reason.

"It's about being able to do what you want to do when you want to do it," explains Emily Pachuta, Head of Investor Insights, UBS Wealth Management Americas.

Getting to that point is the hard part. Investors who weren't spooked by the recession have likely started making up for lost ground, but there are some who are so dubious of the market's ups and downs that they've increasingly turned to cold hard cash. Cash holdings have increased about 3% since 2010 to 23% of portfolios.

More findings from the study:

Nearly 70% of investors with more than $1 million in investable assets do not consider themselves wealthy.

They're most concerned about saving for long-term health care, but providing for children and grandchildren comes a close second.

Long-term care planning: only 33% are highly prepared and 36% are not prepared.

4,500 investors were surveyed, each with a minimum of $1 million in assets or available to be invested.