Most stereotypes about super-rich not true: Report

Tags: News
Contrary to popular belief, not all super-rich individuals necessarily inherit their wealth and own superyachts or private jets, says a report.

Moreover, most of the stereotypes associated with such ultra wealthy people are completely wrong, according to a report by Wealth-X, a global wealth intelligence and prospecting company.

One of the common myths associated with this privileged segment of the society is that most ultra wealthy individuals inherit all their money.

The report said only 19 per cent of the global ultra high net worth (UHNW) population fully inherited their wealth while 65 per cent made their fortune themselves.

A further 16 per cent inherited their wealth and grew it through entrepreneurial endeavours.

Ultra wealthy individuals are those with assets of at least USD 30 million, the report said.

Another stereotype associated with these super-rich people is that they all fly by private jets and own a superyacht.

However, the report said that only a small fraction of the global UHNW population possess a net worth that is high enough to afford a 30-metre superyacht, which has an average price tag of USD 10 million (excluding maintenance, fuel and other expenses).

"Due to the high cost of owning and maintaining a private jet or superyacht, many UHNW individuals charter these luxury crafts or travel on commercial airlines – albeit in first or business class," the report added.

It said a major myth associated with the super-rich is that a majority of them are investment bankers and are immune to economic cycles.

Among others, stereotypes included "technopreneurs are all hoodie-wearing college dropouts in their 20s," and a person has to go to an 'Ivy League University' to be an UHNW individual.

Globally, there were 199,235 such individuals in 2013, with a combined wealth of USD 27.7 trillion, it added.

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