Being rich certainly has its advantages. Or so we are led to believe. In reality, being rich is a lot more difficult than it looks.
NEW SURVEY DETAILS THE BLESSINGS AND BURDENS OF SIGNIFICANT WEALTH
by James Dolan
HOW RICH IS RICH?
How much do you need to call yourself “ultra-affluent?” Eighty-five per cent of respondents report a net worth over $10 million; 45% report a net worth over $25 million. Over 70% report annual income greater than $1 million. More than half (51%) identify a privately held business as the primary source of their wealth.
PASSIONS AND INTERESTS
Of course, all work and no play makes for a dull life. Fifty-three per cent of respondents identify travel as a favourite activity; London, New York and Paris are their top three destinations. While on the road, 44% say they prefer to stay at Four Seasons properties, while 22% prefer Ritz-Carlton. Most are collectors of art (90% of respondents), antiques (72%) and wine (69%).
WORRIES AND ANXIETIES
For all its benefits, the wealthy life is by no means a simple one. Fully 60% of survey respondents “strongly disagree” with the assertion that managing wealth is easy. Some 75% worry about their ability to maintain their lifestyle. Fifty-seven per cent are concerned their children will be less motivated to succeed because they grew up rich.
BUILDING WEALTH
The ultra-affluent seem to have realistic expectations about building wealth. Fiftyfive per cent expect an average annual return of 7% to 8% before tax over the next five years. An additional 16% expect less than that. Fully 89% view real estate prices as either “expensive” (45%) or “somewhat expensive” (44%). Sixty-two per cent have sold some of their property in the past year to lock in profits.
PHILANTHROPY
Canada’s ultra-affluent are a generous group. Fully 87% of respondents plan to leave a substantial portion of their estate to charities and/or religious groups. Seventy per cent say they have made a charitable donation of more than $100,000 in the past year.
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