Today most of the very wealthy are self-made.  Their backgrounds are middle class and their frames of reference are similar to those of you and me.

This seismic shift in wealth creation has significant implications for those offering wealth management and business services. Ivory River understands the market and how to approach it.  We have found:

1. A shift in wealth caretakers from banks to asset managers.
2. The goals of extremely rich have become less focused on generational succession and more on making   a difference now.
3. Wealth life cycle issues are different from those in the past.
4. New media and promotional tactics are required to appeal to entrepreneurial & executive wealth.
5. The language of the wealthy is different and a different style of communication is required.

Thought Capsules For Ultra High Net Worth

MADOFF SYNDROME

• Scandal burnished overall image and reputation of hedge funds
• Increased value and sensitivity to transparency, accessibility and compliance
• Increased interest in independent registered investment advisory firms with deep asset allocation capabilities
  

BORING IS BEAUTIFUL

• The downturn has shaken up core relationships across the industry, freeing up wealthy investors who may have been with a prior firm for decades but are now unnerved. Trust companies, traditional private banking institutions and multi-family offices are all benefitting from this movement. Trust model is especially resonating with the wealthy.
• There is a larger portion of wealthy investors questioning where they want to be in the market, and the trust model is especially resonating with them.
• It's important to have an image and a brand that sends out a signal of stability and client relationship focused.
• Increased appetite among the wealthy for multi-generational planning capabilities
  

TOUGH TIMES DRIVE MOTIVATIONAL CHANGES

• Wealthy are looking for reassurance and ideas to protect their wealth rather than necessarily build it.
• Eight key motivators that impact investing decisions during a bad economic climate—
• Affirmation – wealthy investors are searching for the “right thing.” The risk of being wrong becomes greater, so the need for affirmation is a core component of the decision making process.
• Leadership—During tough times, the wealthy are more willing to give up leadership in decision making. They want to be led to the right decision.
• Familiarity—The familiar is safe. Advantage goes to the market leader.
• Comfort—In good times, comfort is everywhere. It increases in value during rough times.
• Change—Change is always a barrier, but in bad times it causes fear. Need stability, and consistency.
• Community—The wealthy are very influenced by a small and selective community during good times, and even more so during bad times.
• Desire—What I want is now being replaced with what I need!
• Scope—When times are good the wealthy investor wants unlimited choices. Bad times call for more precision.

(Source: The Economic Impact of Persuasive Human Communication in the Financial Services Industry, Stealing Share conducted the research, February, 2009).

LUXURY SHAME

• Wealthy consumers are allegedly suffering from luxury shame feeling guilty about paying $5,000 for a handbag when “Rome is burning.” However the ultra-high-net-worth (more than $100 million in mean net worth) found 94% defined luxury as for oneself rather than for the masses. They feel no guilt over luxury spending today since they made their money the hard way. (source: Prince and Associates Survey, February, 2009)
• The uber-rich like it better that everybody can’t be part of the luxury boom anymore. So Hermes or LVMH is doing better than Coach or Burberry. (Source: Wall Street Journal, February, 2009)