Think­ing rich pays off

NT News - Real Estate - - Market Place - ANTHOINY KEANE

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.

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