By Michael Kane
Excerpt from Vancouver Sun
Friday, August 20, 2004
A survey of the rich suggests they would rather collect experiences and memories than possessions.
Adrian Mastracci, investment counsel at Vancouver’s
‘fee-only’ KCM Wealth Management, says, “Most affluent people do not flaunt their wealth and often you would never guess that they are wealthy. I also see them with their affluence being a little more at ease, maybe a little more tolerant in certain situations. They are not quite so snappy because they don't have to be.”
The West Coast rich are not so different from you and me, apart from the fact that they have more money.
They may even be a bit nicer, especially if they have earned their wealth rather than inheriting it, their financial advisers say.
They are also setting the pace for the wealthy elsewhere by striving for balance between work and family.
The advisers were responding Thursday to a survey showing wealthy Canadians enjoy an enviable lifestyle but don't define themselves by their wealth or believe their money helps them live a more meaningful life.
Practically all of those polled by American Express say their money allows them to enjoy some of the finer things in life, but that they are more interested in collecting experiences and memories than possessions.
That matches the experience of Diane Reid who says the West Coast wealthy have always looked beyond materialism.
"Lifestyle, health and balance are much more important than the acquisition of luxury items," Reid said. "Wealth gives people the ability to enjoy the superb sports and outdoor activities that only B.C. can offer."
She said the emerging affluent are testing their mettle through extreme sports such as mountain biking, heli-skiing and whitewater kayaking, "which reflect their incredible drive and self-confidence."
Contrary to popular belief, the West Coast wealthy are not laid back but work long hours, said Claude Rinfret in Vancouver.
"Yes, they enjoy the spoils of their labours, but generally they don't take it for granted because most have worked hard to achieve and retain their wealth."
The wealthier the client, the nicer they are, particularly those who earned their money rather than inherited it, said Larry Jacobson.
"They almost always do not spoil their children but do pay for their post-high school education. Most send their children away, not because they reject the local universities, but for the experience of going away."
Money does not buy happiness, of course. The stress of accumulating dollars through a small business can come at the expense of family or other areas of life, while those who inherit may lack the direction and motivation to lead a productive life, said Rob Radloff.
The middle-aged wealthy may have parents to care for, as well as raising a family, and are probably more stressed than those who are older, said Lyle Konner.
"Because you have money, you feel you need to do more for your family with it."
When it comes to investments, the West Coast wealthy tend to be overweighted in real estate, said Michel Matifat.
"I know of some hockey players here in Vancouver who bought three or four properties in Whistler hoping that everything would rise in value, but prices there have flattened out and sometimes even reduced from last year. It is not as good as it was."
Most affluent people do not flaunt their wealth and often you would never guess that they are wealthy, said Adrian Mastracci, investment counsel with Vancouver's KCM Wealth Management.
"I also see them with their affluence being a little more at ease, maybe a little more tolerant in certain situations. They are not quite so snappy because they don't have to be."
Ross Sherwood knows of people with "more money than they could spend in a lifetime" who drive second-hand cars.
At the same time, they love to travel and enjoy themselves. "The object of the exercise isn't about making money but enjoying it," Sherwood said.
Once you have disposable income, then quality of life becomes more important than accumulating money or possessions, said Diane McCurdy.
"People with money want life experiences, whether it is travelling or understanding another culture, and they want to give back to society."
THE RICH IN VANCOUVER ARE DIFFERENT
When compared to the affluent in other cities, Vancouverites:
- Are most likely to prefer a quiet night at home (93 per cent, compared to 86 per cent of the total).
- Are the most likely to say they still shop for the best prices (81 per cent, compared to 67 per cent of Montrealers).
- Will take an average of 2.7 vacations a year, compared to 2.5 in Montreal and 2.8 in Toronto.
- Are less likely to own a second property (38 per cent, compared to 41 per cent in Toronto and 48 per cent in Calgary).
- Are less likely (23 per cent) to send their kids to private school, compared to 35 per cent in Montreal, 29 per cent in Toronto, and 24 per cent in Calgary.
Source: 2004 American Express Survey of Affluence
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