If you want to know what makes rich folk tick, it’s worth asking Nigel Green. A dozen years back he founded the De Vere Group which focuses on helping the wealthy grow their asset bases. He’s been so successful that the firm has offices worldwide and over 80 000 clients. In this blog he shares some results of a survey of more than 1 000 clients whose net assets exceed R18m, in SA terms the Super Rich. So next time you’re enjoying a chat with a successful friend or relative, talk about sex, politics, religion – but steer well clear of money. – AH
By Nigel Green*
Money is the most uncomfortable topic of conversation for six out of ten high-net-worth individuals, according to a poll we recently completed, with 61 per cent of those polled ranking personal finance as the most difficult subject to discuss with family, friends and colleagues.
Perhaps surprisingly it came ahead of politics (14 per cent), sex (11 per cent), religion (8 per cent), and health issues (6 per cent) in the study of 1,125 deVere group clients who have investable assets of more than £1m. The respondents came from South Africa, the United Arab Emirates, the UK, the US and Hong Kong.
Money may be on most people’s mind much of the time but this poll underscores that personal finance – which can include income, debt, tax, savings and expenses, – is almost universally regarded as the worst topic of conversation. I imagine that it might come as a surprise to many that those who have money still dislike talking about it.
For many, wealth comes with plenty of intense emotions so perhaps it’s little wonder that even the ‘better-off’ prefer to discuss almost anything else – including those famous dinner party taboos of politics and religion. Money is the last social taboo, it would seem.
I think the survey’s findings suggest that there is perhaps some degree of misplaced guilt or embarrassment surrounding money by those who have accumulated it – despite the fact that high-net-worth individuals are typically likely to be society’s primary wealth and job creators and major tax contributors.
Ignoring or putting off tackling any personal finance issues is always the worst way to handle such things as you will, almost inevitably, be creating far bigger challenges in the future – this is especially true when it comes to managing debts and investments and saving for retirement.
You wouldn’t put off tackling a serious health issue and the same logic should be applied to money.
By banishing the money taboo, society can celebrate how wealth can enrich lives and build further on this value, plus we can become more proactive in dealing with any challenges that may arise.
* Nigel Green is founder and chief executive of deVere Group, which with 70 offices worldwide, over 80,000 clients, and more than $10bn under advisement, is one of the world’s largest independent financial advisory organisations. He established deVere Group in 2002.
