Skeptics and Wealth

Questioning

Distrust and caution are the parents of security. – Benjamin Franklin

Data Points measures skepticism in relationship to one’s overall Wealth Potential™: it is positively related to net worth regardless of age, income and percentage of wealth inherited. So, those who have the greatest potential for accumulating wealth are also those who will most likely question everything with respect to how they (or you) manage and invest money.

In one of our latest studies, within a sample of high net worth individuals (net worth between $1 million and $3 million), over 40% were highly skeptical of others, report that they easily understand the motives of others (including advisors), and thoroughly investigate their business partners and professional advisors.

Attempts to target the affluent typically ignore these important within-group differences. That is, financial services institutions and advisory firms ignore the individual differences (variation) in behaviors and experiences within each group, and, thus, may be doomed to fail using a “one-size-fits-all” approach.

2 thoughts on “Skeptics and Wealth

  • Hello Sarah,
    I’m a reader of your father’s book and a Millionaire Next Door. I’m sorry to hear about your loss. Please carry on his work so that way people can understand the difference between the posers and the genuine McCoys.

    I was at a Private Client service gathering for TD Ameritrade customers just this week and most of the people I met there were Millionaire Next Door types. Me, being probably the youngest millionaire there was the age of the majority’s children. Was interesting hearing how their tales of wealth accumulation match your book.

    I was probably the most aggressive of the bunch, investment wise…LOL, though I still have all the Millionaire Next Door habits and characteristics.

    Sincerely,

    Han Ooi

  • Dr. Fallow, per skepticism and perception of wealth advisory boards (wab ), I arrived at financial independence ($1M liquid) at about 47, 8 years ago. I am certainly skeptical and notice my thinking of wabs as just fee grabbers…TAX mitigation as your father & Danko pointed out is the key. Wealth creation in a good stock market is not too hard but never too easy either…especially in the current market.

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