- November 26, 2018
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Elite Investor Club's Rowan: "Having money is good, it solves certain things but what it does is gives you a whole new set of problems"
Graham Rowan, chairman of Elite Investor Club, in his closing keynote highlighted the concerns that keep the high and ultra high net-worth individuals awake at night and how they may be better addressed.
Here is the transcript:
Rowan: All the way from Britain, Singapore, Hong Kong, Malaysia, I talk to these people every day, so what I’m gonna give you for this final session is distillation of the key things that they are telling me that are keeping them awake.
So I do need to start with a government health warning, I was not a great loss to the diplomatic service. I do have a reputation that telling like it is. So I’m not trying to spare any country or an individual in my comments, but these are real concerns with real people so face it. Do not shoot the messenger.
Okay. I really think it’s really ironic that 99% of the people out there, think that if only they have more money, all their problems will be solved. That’s why they buy lottery ticket, that’s why they invest in cryptocurrency to get rich quick, they just think money is gonna solve everything. 1%, represented by the people here, know that having money is good, it solves certain things but what it does is gives you a whole new set of problems, and that’s one of the things that might I remember after trying to deal with it. So I’m going through hundreds of conversations in my head to come up for about 5 categories of concerns that are keeping my eye network investors awake at night.
You can’t escape government, politics, how the countries run, is it a key part of whtat’s happening, perhaps not. Most of them are business owners. Let’s face it, most wealth is created through businesses. It is really hard to be seriously wealthy as an employee. So most of the people in my organization own their own businesses.
They’re also concern about family. A few things to say about the next generation. Believe me, professor you’re not alone in this in China, it happens in the west as well. Increasingly there are concerns about the planet, so very well sorting things out financially, but what sort of planet are you gonna leave your children, how are they gonna survive if we kill the planet of ourselves.
And then, there’s the whole thing about legacy. It’s becomes really fashionable in recent years. I guess, if you’re worried where the next meals coming from, you’re not so concerned about your legacy. Once you get to a certain level of wealth, the risk is desired to try to leave something behind, so legacy becomes important.
So let’s just look to some of the concerns of the people are. We’re kinda brought up to think that the two inevitable things in life are death and taxes. But I only challenge that actually because in a 20th century, we pretty much doubled life expectancy from around 40 to around 80 years. And there’s every reason to expect we could double again this century. There’s a biotech billionaire called Jim who recently discovered juvenescence it all about how we’re all gonna live to be somewhere between 120 and 150 years old. So, soon when I go to my doctor for a routine check-up, he’ll say something like, “oh Mr. Rowan, you’ve been hitting your red wine a bit hard again, and then you leave and Australian issue.” And of course, have at it again and said we’re gonna have a little box blood stream that will identifies before you feel any symptoms and they’ll be able be fixed. So when you start putting these technologies together, it’s quite feasible to think we’ll live to 120 years old. If we could live half long, think how much more tax we could pay. Isn’t that wonderful? Politicians can’t wait for this.
Now tax in this country, I don’t know what it’s like from where are you from, but tax in this country is not a happy story. I think increasingly some kind of tax on wealth and assets a little bit pronounced and focused on income, they’re taxing infrastructures, they can already, what can we go after next? People with accumulated assets but a land value tax? You think they’re not gonna talk about it for at least a hundred years.
Inheritance tax, if you do not plan your affairs properly, certainly in this country, the government will relieve your heirs 40% of your asset. This used to be cool, only does it affect aristocracy. Now if you’re in a family holding in southeast England, you’ll be banned inheritance tax
Keywords: Accountability, Charity, Corporate Social Responsibility, Environment, Social And Governance (ESG), Impact Investing, Philanthropy, Transparency
Institution: Elite Investor Club
Region: Asia Pacific
Guest: Graham Rowan