Want to know how you spend $1 million? Read on. . .
More than 400 individuals in the UAE who have at least $1 million investable assets, said they are paying more attention to their health, and they’re even willing to sacrifice their wealth just to live longer.
In fact, 91% admitted that health is more important to them than wealth.
Delaying the inevitable
Just to ensure they’re delaying aging and prolonging their life expectancy, they are paying for personal trainers, health supplements, and insurance.
Nearly half of high-net-worth individuals (HNWIs) in the UAE said they are optimistic they will live to 100.
This is markedly above current national life expectancy forecasts in most developed countries, according to UBS Investor Watch, the largest recurring global study of rich people worldwide.
“In fact, the very wealthiest investors expect to live the longest – and they are the most willing to sacrifice wealth for better health,” UBS said.
“Not only do they spend on doctors’ visits and insurance premiums, but preventive services are also popular. Investors spend significantly on gyms, coaches, supplements and other lifestyle expenses.”
Work is bad, weekends good
8 in 10 of HNWIs believe that too much work is bad for their health.
They now make sure they don’t work on weekends while they turn off mobile phones and emails when they’re on holiday.
“There’s no doubt that living extended lives is changing financial and investment behavior. Even among the wealthiest people, the prospect of living as long as 100 years means taking a different approach to financial plans,” said Ali Janoudi, head of wealth management for Central and Eastern Europe, Middle East and Africa at UBS.
The study also found that nearly 70% of the country’s wealthy plan to set aside more of their fortune to charities, foundations and good causes.
Imagine a scenario where you were given $1 million
You have to decide how much to invest in your business and how much to invest in a mutual fund of your choice.
Sorry, you can’t take the money to buy a house near Paris.
Inc. posed this question to a group of attendees at the annual “Inc. 5000 Conference in San Antonio.”
It turns out attendees were far more interested in bolstering their business than storing it in a relatively safe mutual fund.
More than 35% said they would invest all $1 million in their business.
A combined 71% said they would invest at least $700,000 in their business.
But when it came to mutual fund investing, just 6% said they would invest $600,000 or more.
Asked to back up their reasoning on why some would mostly invest in their business, the vast majority expect an aggressive ROI of between 20% and 40%.
Nearly 4 out of 5 surveyed, i.e 78 % expected that level of return, while another 16 % hoped for a return of 10% to 20 %.
That’s in sharp contrast to the returns expected “from the mutual fund of my choice,” as just 2 % expected a return in the 20% to 40 % range.
So what would you do with $1 million?
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