The latest UBS Financial Services “Investor Watch” survey, “When is Enough…Enough?” http://view.ceros.com/ubs/investor-watch-treadmill found millionaires racked with worry over the present and future. They crave time to slow down and nurture family bonds but fear business mistakes will threaten their lifestyle.
The survey suggests many millionaires feel stuck on a treadmill, unsure how much wealth they need to amass. Worse, they feel unable to slow their business activity or step away. More than 63 percent of millionaires with a net worth of $1 million to $5 million said they worry about a major effect on lifestyle if they make a business error or work less.
“We’ve seen a gap in the market for millionaires who associate their wealth with a lifestyle they can afford, however are not taking full advantage of,” UBS Financial Services Senior Vice President Russell Price said. “We work to help people see how to enjoy the life they’ve created for themselves. We work to help get rid of regret and allow the hard work they’ve done in the past to manifest into the experiences of today.”
If worrying about today’s opportunities wasn’t enough, millionaires also worry about tomorrow’s. They fret especially about the example they’ve set. Some worry their children will have distorted ideas about money or will be less driven to work. Others fear their children won’t have the same shot at success because the American dream of upward mobility through hard work is in danger.
Nevertheless, these high achievers yearn for downtime. More than 60 percent of the millionaires polled said that if they had only five more years to live, they’d use their time for traveling and enjoying family.
UBS Financial Services Senior Vice President Sam Mineo said breaking this perpetual work cycle starts with helping millionaires quantify the wealth they have and then helping them better use it protect their families’ fiscal standing, present and future.
A common, consistent goal among clients is to make work optional. Basically, they have enough saved up, so they go to work only because they want to, not because they have to.
Mineo said UBS eases millionaires’ future concerns partly with financial planning — laying out fiscal goals, short- and long-term — and partly with contingency plans in case the high-net earner gets sick or dies.
Mineo and Price, who collectively have three decades of financial advising experience, said they help millionaires set admirable examples by developing strategies for selflessness.
“We are always surprised to hear our clients’ concerns about spoiling their kids but yet find no strategy or theme related to their wealth transfer strategies,” Price said. “We have worked with a lot of clients to create family gifting strategies big and small that allows younger generations to appreciate and respect what has been created.”
Mineo, furthermore, said children best understand wealth creation’s toil through learning. So, involving children in family financial planning is important.
“Educating our younger generations on financial planning will only further their path of success,” he said. “By having your family involved in the financial planning process, UBS helps build a foundation of personal values for you to pass down through generations.”
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