Darrell's Message

What you can learn from the very wealthy.

• They give away more.
  Although charitable giving dropped among the wealthy after the 2000-2001 bear market, households with $500,000 or more in assets gave away 6% of their incomes in 2004, compared to an average of about 2% for all households.
• They are much more likely to own a business.
  Overall, about 41% of those with a net worth putting them in the top 10% of households, own some or part of a business.
• They borrow strategically.
  The wealthy are only slightly less likely to owe money than average folks, but they are half as likely to have credit card debts and are also much less likely to have installment debt, such as auto loans.
• They're almost always homeowners, and many own investment property, too. About 40% of the highest-net-worth group own some kind of real estate such as rental property or a second home, along with private property.

The opinions and analysis above is for use as background information. This discussion alone is not sufficient and should not be used for the development or implementation of a financial strategy. This information should not be relied upon as a substitute for consultation with a financial or tax advisor.

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