Financial Trends Among The Wealthy

A recent 2023 Global Wealth and Lifestyle Report from Julius Baer Group provides insights on financial trends among the wealthy. It found that wealthy people are investing more, with those in North America and Europe largely sticking to stocks and real estate. What significant changes have occurred in the behaviour of wealthy people? 

01 More Investments

Investing can provide people with another source of income, fund their retirement, or even get them out of a financial jam. Above all, investing grows wealth by helping to meet financial goals and increasing purchasing power over time. It’s a wise decision to let that money work for you. The wealthy, in particular, have been accelerating their investments recently.

In all regions of the world, at least a quarter of HNWIs said they invested more during 2022 than in the previous year. The regions that led the pack were Asia, where 67% of respondents reported investing more, and the Middle East, where 73% reported investing more.

02 Focus on Health and Wellness

HNWIs place a significant emphasis on maintaining and enhancing their physical and mental well-being. More than half of HNWIs said they’ve used gym memberships in the past year. In Europe and Asia, 1 in 4 people exercised almost once a day. HNWIs in all regions also said that they spent more on health insurance so they could have the best possible healthcare should they need it in the future.

This trend also includes investments in state-of-the-art home fitness facilities, personal trainers, nutritionists, and wellness retreats. They may also explore cutting-edge medical treatments and technologies to optimise their health and prolong their lifespan. This focus on wellness extends beyond personal care and can encompass efforts to promote sustainable and eco-conscious practices.

03 More Money on travel and experiences

HNWIs look for experiences tailored to their interests and preferences, often going beyond traditional luxury offerings. They may include custom-designed travel itineraries, private events, and access to exclusive venues or activities.

Julius Baer found that hospitality spending, which includes gourmet meals and five-star hotels, increased in all five regions it surveyed. The frequency of leisure travel has gone up quite a bit, particularly in Asia, Europe, and the Middle East. That increase in demand led to large price increases for hotel suites, fine dining, and business-class airfare.

In addition, HNWIs frequently pursue these experiences to connect with family, friends, and socioeconomic peers. This trend reflects a desire for authenticity, individuality, and distinctive access to top-quality services. For example, a HNWI might hire a team to arrange a private concert with their favourite musician or organise a bespoke culinary tour with a renowned chef.

04 Stocks and real estate investing

Stocks and real estate have historically been some of the best ways to invest. Investing in real estate stocks can provide the portfolio with stable income. The stock market has delivered an average return of about 10% per year, according to The Motley Fool, a US financial services company. Real estate investment trusts (REITs) have done even better, with returns of nearly 12%.

According to the Report, considering where HNWIs invest, North Americans and Europeans have tended to be more conservative. They have not changed the diversity and focus of their assets in the past year, choosing to prioritise equities and real estate, potentially to mitigate the effects of future inflation. For example, although it is one of the priciest markets for residential property, London prime real estate has seen slowing purchase rates from overseas buyers. However, wealthy Americans have taken advantage of the recent strength of the dollar to invest.