In this guide
Have you ever wondered how the rich invest? Very cautiously is the answer.
CoreData recently conducted research on this question for local financial advisory group, Crestone Wealth Management. They surveyed 1,000 so called High Net Wealth Australians with more than $1 million in investable assets (excluding the family home) and Ultra High Wealth Australians with more than $10m in investable assets.
The results were surprising.
Wealth paradox
It’s often assumed that wealthy people became so because they are good at investing and willing to take risks in pursuit of high returns. But in what the report calls ‘’the wealth paradox’’, the opposite seems to be true.
While many of them have acquired wealth by taking risks building a business, that doesn’t automatically translate into their investment behavior.
