Too much of a good thing? Australia’s richest people reveal the biggest burden of having piles of cash in a survey by the Private Wealth Network
Some of Australia’s richest people have revealed the burden of living with a lot of money, with wealthy Australians saying their fortunes can affect relationships.
In a new survey from asset manager Private Wealth Network (PWN), the wealthy were also concerned about how much of their wealth would be inherited by their children.
According to the survey. more than 70 percent of wealthy Australians say they try to hide their millions from others.
A survey of wealthy Australians has found that their fortunes can affect the relationships they have with friends and family
More than half said their wealth affected their friendships, while 61 percent said financial prosperity can lead to division among families.
David Werdiger, son of former head of the multibillion-dollar Julliard Group company Nathan Werdiger, said being rich can sometimes bring problems.
He told the Financial Overview people who have accumulated wealth can often be perceived differently.
‘It could be because of the way it affects friendships. It could be for security reasons… people are making assumptions about you…’ Mr Werdiger said.
“Or they might hit you up (for money) or other negative things might happen.”
Richard Milroy, founder and executive director of PWN, said the number of respondents in the survey who said they hid their wealth from others was “really striking.”
“Respondents said they feel like people treat them differently because of their wealth (and) it’s harder to have real relationships,” Mr. Milroy said.
He said parents also worry about their children being judged for growing up in an environment where they have access to wealth that few would have.
The survey also reflected current attitudes towards inheritance. Nearly 90 percent of respondents said families can easily pass on too much wealth to their children.
According to the Private Wealth Network research, more than 70 percent of wealthy Australians say they try to hide their wealth from others.
However, Mr Werdiger said families who hide their wealth from their children could fuel mistrust.
Mr Werdiger, a wealth transition consultant for family businesses, said wealthy families need to build trust with each other and find ways to use their wealth as a force for good.
The PNW survey collected responses from 44 family offices – investment funds set up to manage the financial assets of wealthy families.
A wealth management expert says families should not go to extremes in hiding their fortunes from their relatives as this could fuel a cycle of distrust
There are approximately 2,000 family offices in Australia.
According to a report by the major bank Credit Suisse, more than two million Australians are now millionaires.