June 24, 2010; Source: Bloomberg.com | We know that giving is down generally in the U.S. but where are the 2.87 million millionaires of this country putting their money? According to the findings of The World Wealth Report released this week by Capgemini SA and Merrill Lynch & Co. millionaires are putting more into “tangible assets” in the form of luxury collectibles such as yachts, jets and high-end cars; art; jewelry, gems and watches; other collectibles such as wine and coins; sports investments, including teams and race horses, club memberships, musical instruments and other items.
The report was compiled from a survey of 1200 wealth managers serving 150,000 clients across 71 countries. Spending on such “luxury collectible” items increased from 27 percent in 2008 to 30 percent in 2009.
About the charitable behavior of the millionaires in question? According to this study, the charitably minded are looking more to wealth management firms. “It’s not just blanketing several charities and hoping for the best,” said Van der Linde. “They are now looking to wealth management firms for advice on how to make philanthropy part of their investment planning.”—Ruth McCambridge