TrueWealth Report News Release
2006-03-06
Does Money Really Buy Happiness?
First-of-a-kind survey offers sneak peek at the values & views of ultra-rich
News Release
March 7, 2006
Does Money Really Buy Happiness?
First-of-a-kind survey offers sneak peek at the values & views of ultra-rich
VANCOUVER, BC – A new Sensus Research report examining the attitudes and opinions of Canada’s ultra-rich — individuals with a net worth of $10 million plus — revealed interesting insights into this unique segment of the population. The exclusive report was commissioned and underwritten solely by the Vancouver-based T. Stenner Group, a specialized group of private professional advisors who manage the financial affairs of ultra high net worth families.
Among the results is a finding that 48% of respondents were neutral or actually disagreed with the statement, “As I have gotten wealthier, I have gotten happier.” Further findings also support the claim that with great wealth come great worry and responsibility. The top wealth-related concern for one-third of respondents, or 34%, is maintaining their lifestyle.
“This report provides a rare glimpse into a very exclusive and private group,” said Sensus President Rob Dawson. “The attitudes of these wealthy and influential respondents have real implications for the Canadian economy as a whole.”
More than just studying the attitudes of Canada’s ultra-rich, the report outlines their responses to several questions in the following areas: passion investments & interests, philanthropy & family values, trends in real estate, wealth & advice and professional relationships.
Highlights:
Passion Investments & Interests
When asked about activities and hobbies, travel was rated as the most popular by a majority of respondents (53%). Golf, a favourite pastime of 39% of UHNW individuals, was ranked second. These individuals are avid collectors with 85% owning some type of collection. Art (90%), Antiques (72%) and Wine (69%) are cited as the most popular collections they own.
Philanthropy & Family Values
Philanthropy is a significant part of the UHNW Canadian’s way of life as 69% of respondents donated over $100,000 to philanthropic causes or organizations in the past year. 55% of respondents are specifically committed to the arts while 70% are committed to children’s charities.
Benefits & Challenges of Wealth
The top ranked benefits of wealth are “Gives me long term security and peace of mind” and “Allows me to provide advantages for my family.” Approximately one-quarter (24%) of respondents are more worried that their children or grandchildren will become less motivated because of family wealth, an effect termed “affluenza”.
Trends in Real Estate
From the perspective of the survey sample, Canadian real estate is currently a seller’s market. Only 5% of those surveyed believe real estate values are relatively cheap at present. At the same time, two-thirds of respondents, 67%, believe the Canadian real estate market is set to take a downward turn within the next 12 months.
Wealth & Advice
When asked “If you had to invest 20% of your own net worth tomorrow, which sector would make the most sense to you?” close to half of those surveyed responded with the stock market.
Professional Relationships
Survey respondents were most likely to maintain a professional relationship with an accountant with 95% indicating they currently use one. While only 35% of those with an accountant chose their accountant as their ‘personal CFO’, 71% of those using a Family Office Services Group would make them their personal CFO.
“The T. Stenner Group TrueWealth Report paints a picture of Canada’s affluent population that may be very different from common perceptions of this group”, says Dawson. “While the ultra-affluent certainly enjoy the benefits of their wealth, it is clear that with wealth comes increased responsibility to both family and society.”
About the 2006 T. Stenner Group TrueWealth Report
The 2006 T. Stenner Group TrueWealth Report is a confidential, exclusive study of the views and opinions of Canada’s ultra-affluent. The results act as a knowledge bank to shed light on what drives the ultra-affluent in their decisions on investing and lifestyle choices.
Data for the TrueWealth Report was collected from November 10 to December 19, 2005. A total of 165 respondents from across Canada participated in the survey, allowing for a confidence level of plus or minus 7.6%, 19 times out of 20.
Respondents were contacted via email as well as through hard copy surveys distributed by mail. The initial list included individuals within the T. Stenner Group databases, personal connections as well as members of various strategic business organizations and networking groups. A “snowball” technique involving respondent recommendation of the survey to other suitable candidates was also used to increase the reach of the survey to this difficult-to-access and exclusive segment.
Please visit www.truewealthreport.com to download the full report.
About The T. Stenner Group
The T. Stenner Group of CIBC Wood Gundy is a specialized group of professional advisors in Vancouver, Canada. With a “private family office” model, the T. Stenner Group integrates and manages the financial affairs of businesses, charitable organizations and families with a net worth of $10 million or more.
About Sensus
Sensus Research Inc. is one of the largest and fastest growing privately owned Canadian marketing research firms. Based in Vancouver, Sensus provides local, national and international clients with smart, customized, leading-edge marketing research solutions enabling them to better know their market, customer and brand.
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For further information, please contact:
Rob Dawson
concerto marketing group
604.642.5908
rdawson@concertomarketing.com
