Asked about the biggest money issues on their minds, millionaires explained what keeps them awake at night to it, as demonstrated by recent research
By Mike Goodman
Health and being able to sustain their current lifestyle are the main worries for the world’s ever growing numbers of rich and super-rich, according to this year’s World
Fears about possible tax increases and the future of the economy rank midway down a list of 16 possible worries. Meanwhile concerns that the next generation might not be able to manage their inherited wealth and fears about political risks rank near the bottom of the table produced by international technology and business consultants Capgemini and Royal Bank of Canada Wealth Management.
The newly published report is based on an international survey of “High Net Worth Individuals” (HNWIs) who have at least $1 million (US) spare assets to invest. David Wilson of Capgemini, who conducted the survey, said it was the first time since the report was first published 19 years ago that it asked respondents about their specific concerns.
He said: "The top concerns, health, education and retirement were common to all regions, but the highest level of worry seems to be among the wealthy resident in the Asia-Pacific region and the lowest level among North Americans and Europeans."
The top 10 wealth-related concerns for HNWIs aged under 45 were:
1. Me and my family’s health
2. Ensuring my assets will last throughout my lifetime
3. Being able to afford the lifestyle I want in retirement
4. Rising cost of health care
5. Impact of economy on ability to meet financial goals
6. Possibility of tax increases
7. Future performance of the equity market
8. Threat of income not keeping up with inflation
9. Identity theft / personal financial crime
10. Availability of quality education
The top 10 was similar for those over 45, except the older HWNIs are more worried about the future performance of the real estate market than they are about education.
The three countries where the wealthy are most worried about the future are Brazil, Mexico and India. The report estimates the number of wealthy in Latin America actually fell last year, but India showed the highest growth in the number of wealthy people, now numbering 200,000.
The world’s wealthy moved assets from cash into shares last year, as memories of the banking crash faded and low interest rates in the USA meant returns on cash lagged behind equities. Globally the wealthy held 27 per cent in equities, 26 per cent in cash, 20 per cent in real estate, and the rest in fixed income bonds and alternative investments. In North America the rich held more than a third of their assets in shares.
"Despite the attractions of the stock market, people like to hold a good proportion of their assets in cash as they want ready funds to finance their lifestyles,” said Mr Wilson.
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The report estimates that last year the number of HNWI’s grew globally by nearly one million, to nearly 15 million. Once again Asia-Pacific was the pacemaking region with an 11 per cent growth in HNWI’s to 4.7 million, and just overtaking North America’s total, despite that region’s healthy 9 per cent growth. China spearheaded the Asia-Pacific wealth boom with its rich and super rich growing by 17 per cent.
The number of Europe’s rich and super rich grew a modest 4.9 per cent to 4 million.
The report forecasts the total assets of the world's wealthy will grow 8 per cent per annum to reach US$70.5 trillion, by 2017, led by a 10 per cent rise in the Asia-Pacific region.
In 1962, six year old John Tuohy, his two brothers and two sisters entered Connecticut’s foster care system and were promptly split apart. Over the next ten years, John would live in more than ten foster homes, group homes and state schools, from his native Waterbury to Ansonia, New Haven, West Haven, Deep River and Hartford. In the end, a decade later, the state returned him to the same home and the same parents they had taken him from. As tragic as is funny compelling story will make you cry and laugh as you journey with this child to overcome the obstacles of the foster care system and find his dreams.
http://www.amazon.com/No-Time-Say-Goodbye-Memoir/dp/0692361294/
http://amemoirofalifeinfostercare.blogspot.com/
ABOUT THE AUTHOR
John William Tuohy is a writer who lives in Washington DC. He holds an MFA in writing from Lindenwood University. He is the author of numerous non-fiction on the history of organized crime including the ground break biography of bootlegger Roger Tuohy "When Capone's Mob Murdered Touhy" and "Guns and Glamour: A History of Organized Crime in Chicago."
His non-fiction crime short stories have appeared in The New Criminologist, American Mafia and other publications. John won the City of Chicago's Celtic Playfest for his work The Hannigan's of Beverly, and his short story fiction work, Karma Finds Franny Glass, appeared in AdmitTwo Magazine in October of 2008.
His play, Cyberdate.Com, was chosen for a public performance at the Actors Chapel in Manhattan in February of 2007 as part of the groups Reading Series for New York project. In June of 2008, the play won the Virginia Theater of The First Amendment Award for best new play.
Contact John:
MYWRITERSSITE.BLOGSPOT.COM
JWTUOHY95@GMAIL.COM