Ultra-HNWs Worry About “Financial Security”, Says Multi-Family Office Study

Contributing Editor

9 August 2006

Despite their vast wealth, the ultra-high net worth cited “achieving financial security” as their top concern in a survey conducted by Calibre, the multi-family office of the US financial services firm, Wachovia. The survey, conducted among respondents in the US with at least $25 million in investable assets, found that many of the ultra-HNWs are less concerned about being discrete with their wealth or about potential family conflict caused by wealth than in previous generations. According to the results, less than half attributed their wealth to "smart risk-taking." A far greater majority attributed their wealth to "hard work". One-third said their wealth was the result of "luck and good timing," while nearly half agreed their wealth "is a blessing from God". For the most part, these individuals accumulated their wealth through inheritance or business ownership. They report that managing their wealth is challenging and takes a significant amount of time. Ultra-HNWs often serve on the boards of the charities they support financially, and often their families have maintained an interest in certain charities across generations. Most have a wealth transfer strategy in place. "This reaffirms our experience at Calibre that wealthy client families almost universally are interested in wealth transfer strategies that create a meaningful legacy," said Keith Whitaker, director of family dynamics at Calibre.