11 Reasons Why It Sucks To Be Rich

Downton Abbey

Photo: PR handout

Being uber-rich sounds like a real pain in the a$$.That’s because you might need a psychologist to help with the wealth management process.

At least, that’s a service being offered by Abbot Downing — Wells Fargo’s new wealth management unit, which caters to clients with more than $50 million in investable assets.

The firm’s website has some really interesting literature (“white papers”) that gives an insight into the problems of the 1%. 

From it, we’ve pulled out 11 reasons that we think demonstrate why being ultra-rich really blows. 

If you're uber-rich, you might have to hold family meetings to talk about your money.

Abbot Downing suggests that wealthy families having so-called 'family meetings':

'Regular family meetings provide a forum for sharing news, concerns, opportunities and challenges in an open and direct way.'

Source: Abbot Downing

But you probably won't meet in the comfort of your own home.

That's why you should spend more of your money to meet somewhere more suitable such as a country club.

But wait... You can't just meet and call it a day. You will have to spend a lot of time preparing for the family meeting.

Your kids will not want to sit through your long, boring meeting, so you need to make arrangements for them.

From Abbot Downing:

'Children below the age of 14 find it difficult to sit through a lengthy family meeting, so childcare arrangements are important. That said, for larger family retreats, it can be a great idea to develop separate activities appropriate for children or teens, such as learning certain money skills, doing a group charitable project or even just going on a hike together. Someday these cousins will be the adults running the family meetings themselves.'

Source: Abbot Downing

Oh, and then you have to worry about keeping your rich relatives' attention, especially the older ones.

From Abbot Downing:

'Studies show that most people can't manage much more than about 20 minutes of sustained attention. That period is even less for younger adults, seniors, and for people with medical or learning difficulties. Good practice is for the family to take rest breaks frequently, ranging from mid-session coffee breaks to longer opportunities to walk, nap or exercise.'

Source: Abbot Downing

From Abbot Downing:

Places for family retreats should be convenient to everyone who needs to attend. It is not fair to expect members to attend and then make attending a hassle. Other matters of convenience to keep in mind include:

  • Making sure bathrooms are easily accessible and adequate in number
  • Reducing noises that may obstruct hearing, particularly for older family members
  • Using an audio system so all can hear and speak clearly
  • Giving attendees travelling from afar time to rest before the meeting
  • Arranging for adequate meals and drinks

Source: Abbot Downing

Since you're really loaded you will have to worry about your privacy even from the hotel staff.

From Abbot Downing:

'A hotel, rented home or club also allows the family to manage its privacy. Family meetings often include the presentation of highly confidential material, from investment reports to estate plans. Hotel staff should be kept from the meeting rooms except during meals.'

Source: Abbot Downing

You also have to worry about your name, which might attract unwanted public attention.

From Abbot Downing:

'Clubs or resorts should also not display placards with the family's name on it if revealing it would attract public attention. Larger families may also need to allow for meetings specific to individual branches. Each branch should have private areas to discuss their own affairs while also enjoy- ing the larger space where everyone can come together.'

Source: Abbot Downing

The more money you have the more problems it can create in terms of family feuds.

From Abbot Downing:

'Every family has its tensions, so it is normal that family meetings can be an occasion for conflict. Unfortunately, wealth can turn up the volume in such matters. Powerful voices among different generations can heat up a family meeting. Mistaken or unspoken expectations can lead to deep-seated resentments. Some members may be disappointed over anticipated roles in the family or jobs in the business that fail to materialise.'

Source: Abbot Downing

Finally, you'll probably need a psychologist to assist with managing your wealth.

Abbot Downing provides a group dedicated to family governance and psychology.

From Abbot Downing:

'In bringing together both the quantitative and qualitative elements of wealth planning, the family and its advisors draw upon financial, legal and psychological disciplines to understand the complexities of the family's entire wealth landscape in order to institute the proper structures and processes to manage issues and achieve long-term success.'

Source: Abbot Downing

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