In addition to my recent blog “What does being RICH come down to“, I believe many millionaires are constantly on the move between countries looking for opportunities to better their lives and grow their wealth, according to a study looking at the wealthy and how they make their money.
The main reason for leaving a country is to find quality of life say 88%, and then family needs (79%).
Two thirds of those polled with liquid assets of at least £635,000 cited business interests as the third key reason for moving to a new country.
A spokesman for RBC Wealth Management and The Economist Intelligence Unit (EIU), who conducted the research, said: “As the world’s economies converge, these millionaires are having increasingly international footprints for their professional and personal lives.
“They are mainly focussed on building and protecting their wealth before transferring their wealth to their future generations.”
Importance of property
The EIU’s report also highlighted that these mobile millionaires are becoming increasingly nomadic in the search for success.
They generally make most of their money in their new country (60%) and around half of them (48%) reinvest in their new country with a third (32%) investing in their birth country.
The most popular class for investments is real estate with 53% of millionaires explaining property is important to their portfolios.
Millionaires from the Asia Pacific region were the most likely to heavily in invest their wealth in real estate (31%), along with 10% of Europeans compared with just 7% of US and Canadian millionaires.
The survey also found that mobile millionaires put money in to precious metals, compared with the millionaires in their birth countries – around 21% against 13%.
Families and charity
The biggest incentive for millionaires to work hard and create such wealth is to leave their families comfortable – but not so they don’t have to work for themselves (33%).
Those in the Asia Pacific region were most likely to leave all of their wealth to family (41%) compared to 27% of other millionaires.
Charitable giving is a big feature in their lives, with almost a third of mobile millionaires in North America planning to leave major donations to charity, compared with 11% of millionaires around the rest of the world.
More than a third of mobile millionaires have no will (37%) and around the same number say they don’t fully understand how their wealth is taxed (34%).
It’s no surprise to find that most of the wealthy are self-made – mainly as professionals (29%) and entrepreneurs (17%), while 30% inherited their money.
Blog published by Mike Coady.