High-net-worth individuals and investors have expressed concerns about the difficulties of living with immense amounts of money, claiming it can have a negative impact on their relationships. A study conducted by The Executive Council of CEOWORLD Magazine, the Global Wealth Survey, found that many of them were also anxious about how much of their fortune would be passed down to their children.
The report also brought to light the investment habits of the wealthy across the globe. It showed that they have become more inclined towards diversified investments, as well as products like digital assets, private equity and hedge funds. These have become increasingly attractive to wealthy investors.
Despite the doubts and hesitations that exist in other areas concerning AI, the stock market sector is optimistic about the potential positive transformation that it can bring. According to the Global Wealth Survey of affluent investors, 75% of them have faith that AI-assisted advice can help keep their investment portfolios up-to-date with the market, leading to increased returns. Additionally, almost two-thirds of those surveyed agree that AI can be used to efficiently monitor and notify them of any changes to their portfolios.
The survey also showed that only 41 percent of the surveyed high-net-worth individuals and investors think that the issues posed by the present economic instability won’t have a substantial effect on wealth-building in the long run, while 32 percent of them consider the existing situation to be a chance that can enhance their long-term wealth.
The survey uncovered that the majority of those surveyed (72%) had invested in mutual funds, with 60% of that number investing in exchange-traded funds (ETFs). Additionally, it revealed that 70% of the investors also possessed direct equity shares in the market. Further, two-thirds of the affluent investors surveyed held private equity assets, and more than half (53%) of them had already invested in hedge funds.
Seventy-five percent of those asked indicated that they would want to be informed in advance about the details of any inheritance they were to receive, while 38% said they are extremely open with their own offspring about their plans for the transfer of their wealth.
Most of those surveyed stated that tax efficiency was either “extremely” or “somewhat” crucial, yet only 35% of them confirmed that their wealth transfer plan incorporates tax efficient strategies.
Nearly half of the survey participants expressed that having a positive charitable effect was either “very” or “somewhat” crucial to their plan for transferring wealth from one generation to another.
80% of those who utilize the services of a financial advisor have created a documented plan for intergenerational wealth transfer, in comparison to 60% of those who do not consult with a financial advisor.
The survey showed that the majority of wealthy investors endeavored to keep their money from being seen by others. More than half claimed that their affluence had an impact on their relationships with friends, and half of the respondents believed that being affluent can divide families.
Nearly seven in ten survey participants reported feeling that they are treated differently due to their economic status, and that it is difficult to form authentic relationships. Additionally, more than three quarters of those questioned expressed worry regarding their children being judged for residing in a situation of great privilege. Many of those surveyed commented that families could be too generous when it came to bequeathing wealth to their offspring. The the Global Wealth Survey conducted by The Executive Council of CEOWORLD Magazine collected responses from 96,000 high-net-worth individuals and investors worldwide.
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