 Robert Frank looks at the lives and culture of the wealthy. |
Earners vs. Heirs
Study after study shows that most of today’s multi-millionaires made their wealth themselves, as opposed to inheriting it from their parents.
PNC Wealth Management recently polled about 1,500 Americans with $500,000 or more in investible assets and found that 69% of respondents made most of their fortune through work, business ownership or investments. Only 6% made their wealth by inheriting it, while 25% made it through a combination of inheritence and earnings.
What’s most interesting is that the survey found some major differences in the two groups’ attitudes about money — and their responses didn’t always break down along predictable lines:
RECESSION — When asked about a recession, 36% of earners said it was a concern, compared to 27% of heirs. Yet the earners were more likely to agree with the statement that “I have a lot of control over my financial future.”
RISK — Earners have a higher risk tolerance than heirs, with 29% rating themselves as “moderate to risky” investors, compared to 21% of heirs.
KIDS — More than twice as many earners (68%, vs. 28% of heirs) agreed that “every generation should be responsible for creating its own wealth.”
LUCK — Fully 37% of earners agreed that “the money I have made so far has come from being at the right place at the right time.” Among heirs, the number was 25%. I guess the heirs don’t subscribe to Warren Buffett’s “lucky sperm” theory.
HAPPINESS– Fuly 76% of earners agree that “my financial success lets me feel less stress and worry,” compared to 50% of heirs. Half of all earners agree that “as I have accumulated more money in my life I have become happier,” compared to a third of heirs.
WORRIES– Heirs are more than twice as likely to say “having a lot of money brings about more problems than it solves.” Heirs were at 20%, earners were at 9%.
