A new UBS survey polled 2,215 millionaires—defined as those with a total net worth of $1 million or more—with 610 of them having a net worth of $5 million or more and found that wealth is a double-edged sword: bringing plush comforts and a better lifestyle but also carrying increased stresses, anxieties and sacrifices with family and relationships.
With spending habits and expenses that ramped up during the credit/housing bubble, and yields on their savings having plunged thanks to financial asset over-valuations, even the so called ‘wealthy’ are finding their lifestyle increasingly expensive to maintain. Downsizing and reducing overhead are top of mind today:
“The report found that 52 percent of millionaires expressed the feeling of being “stuck on a treadmill, but I can’t get off without giving up my family’s lifestyle.” It said that while satisfaction goes up as wealth increases, 58 percent of millionaires said their lifestyle expectations have also increased—so the more they have, the more they want..
Today’s millionaires also feel they are one stock-market crash away from losing their fortunes and that there is no such thing as “enough” wealth to feel secure.” See: Millionaires feel stuck on a treadmill
Since many ‘high net worth’ people are following the conventional asset allocation drivel, advice, sales pitch from the financial complex, they now find their life savings lashed to the third financial market bubble in 15 years, just as they are older and less able to recover from the next big loss cycle. The feeling in the gut that they are ‘one stock-market crash away from losing their fortunes’ a third time, is that nagging voice of inner reason begging for meaningful risk management and more conservative spending habits before it’s too late. For those who are still wondering what to do, we leave you with the recent valuation update for the S&P 500 shown here since 1871. You are here (far right), and you’ve been warned.
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