Thinking rich pays off
RICH Australians have a different mindset when it comes to wealth, and habits that everyday investors can aim to mimic.
The latest Capgemini World Wealth Report ranked Australia ninth globally in terms of numbers of high net worth individuals, at 278,000.
High net worth individuals are people with net investment assets of $US1 million ($A1.3 million) – apart from their home – and their Australian numbers have grown 9.8 per cent in a year. The word “millionaire” doesn’t have the lustre it once did, and growing numbers of investors have $5 million-plus fortunes.
Finance specialists say we can learn from them. Thinking like rich people means broadening your mind beyond property and shares, surrounding yourself with professional advisers and using different investment structures to lower your tax and risk.
“I’m seeing more clients with multi-million dollar portfolios,” said Adrian Frinsdorf, director of wealth advisory at William Buck. “With the sale of successful businesses and the rise of investments, wealthy investors have moved from rich to very rich,” he said.
“Often these people come from successful business to build and store wealth, he said. “They diversify their portfolios and don’t put all their eggs in one basket. They don’t have it all in shares.”
Mr Frinsdorf said while average mum-and-dad investors focused on building enough assets for retirement, wealthier investors focused more on maximising their estate for their children.