What are some downsides to being rich

Do the rich have advantages in investing money?

Those who are already rich can increase their wealth more easily than normal earners - according to a RWB study, around 70 percent of Germans think so. People with assets of more than one million euros are considered “rich”. Most see well-paid work as the key to wealth.

Seven out of ten Germans see themselves at a disadvantage compared to rich people when it comes to investing money. The widespread assumption: the more assets there are, the better the investment products that are available to choose from.

This is the result of a current study by the RWB Group. The market research institute GfK surveyed 1,005 Germans over the age of 14 on behalf of the financial services provider. We have summarized the results of the study for you.

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Rich from one million euros

Almost half of the respondents (46 percent) consider people with assets of one million euros or more - regardless of whether in the form of money or real estate - as rich. Around eight percent only draw the line to wealth at three million euros.

However, not all study participants agree with this assessment: for one in five people are already considered rich with assets of 250,000 euros or more.

Hardly any self-confidence when it comes to investing

When it comes to wealth accumulation, Germans seem to be more pessimistic. Around 52 percent rate the chance of building up a high level of wealth in Germany as "rather low" and a further 25 percent even rate it as "very low". Less than one in five (18 percent) are confident in this regard.

Work as the main reason for wealth

Those who work hard also have the opportunity to get rich - the majority of Germans believe in this principle. A quarter see the greatest opportunities for this in highly qualified professions. After all, 21 percent believe that starting your own business is the key to making a big fortune. A career in sports or show business is also a realistic option for some (15 percent).

In contrast, only three in ten respondents believe that they can get rich by investing existing assets - be it in real estate (18 percent) or in stocks (12 percent).

The rich invest more opportunity-oriented

Ordinary citizens tend to be more conservative when it comes to investing their money. This can be proven using current statistics: At the end of 2017, private households in Germany had invested 40 percent of their assets in savings, sight or time deposits. Another 37 percent make claims against life or pension insurance. Only a small proportion of Germans trust high-potential investments such as stocks (11 percent) and investment funds (9 percent).

Wealthy people, on the other hand, invest much more aggressively. This is shown, for example, by the “Global Family Office Report” by the major Swiss bank UBS. The bank asked 276 family offices how their customers' assets were composed. The numbers speak for themselves: Half of the investment capital consists of investments in companies in the form of shares (29 percent) or private equity (20 percent). The rest goes into real estate (16 percent), bonds (15 percent) and hedge funds (6 percent).

The figures show it clearly: It is not the availability of better investment products that gives rich people an investment advantage. Rather, they benefit from the expertise of family offices or asset managers who build a balanced and opportunity-oriented portfolio for them. Small investors, on the other hand, often think pessimistically and therefore fail to recognize the advantages that the capital market offers them.

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