Other than travel, two new experiential investments are becoming prominent.
1. Ghostwritten books
Ultra-high networth individuals might want a book written for them because: • They have led a rare and rich life and they want the
satisfaction of telling their stories • They have created a professional concept that needs to reach out to the masses In either cases, a ghostwritten book will boost their brand equity and perhaps make them a celebrated thought leader. Professional ghostwriters can help them in this endeavour – they are not only skilled in writing, they also practise discretion. There is a lot one can discuss about this experience, but that will have to await another day.
2. Philanthropy investments
The most sublime form of passion is compassion.
It is therefore understandable that for many UHNIs, the nal frontier is not that vast external space lled with excitement but a small inner space capable of generating purpose and peace.
The extraordinarily wealthy experience their power every
single day. In the reverence they receive, the quality of service that’s bestowed upon them and the cocoon the world allows them to occupy. However, a small minority amongst them want demonstrate their power by creating social impact. They create a non-prot organisation, focus on important problem areas (like education, health, women’s empowerment, culture and heritage, micro-nance, infrastructure etc) and make a difference at the grassroots.
Those with the taste for such a mission nd a consultant that will help them identify the right cause, the right partner NGOs and the manner in which money will be deployed. They end up approaching this mission with the same zeal they exhibited while building an enviable career. While it is possible to create break even models in this space – for instance, by operating a benign micro-nance institution – the primary ROI is in the form of novel experiences, goodwill and a renewed sense of purpose. As a result, they also learn before it’s too late that wealth without meaning is akin to health without joy.
These chosen few are those who, having lived a full life, now go about discovering how to live a fuller life. Perhaps that’s the ultimate privilege of being wealthy – the ability to live a life without regrets.
• The process of investment itself becomes more fun and exciting
Sound investments in this space are not eroded by ination • They offer an opportunity for diversication where your portfolio becomes unique, reecting your personality, tastes and worldview Investments are less volatile – since indices such as stock market prices don’t cause daily uctuations • Some countries offer certain tax exemptions for some of the non
conventional asset classes
Your successors might not be interested in the same asset classes as you. As a result, they understand the signicance and value of your non-conventional assets portfolio and you may have to identify others who will own/manage/enjoy/liquidate these assets Takes long for valuation to increase – not suitable for short-term gains Secondary markets usually don’t exist; you may be required to scout for a buyer while liquidating • Non-conventional asset classes that deliver high returns often have commensurate risks as well Prices fetched during auctions might mislead investors into thinking that average gains are just as high