Private jets: many of the super-rich have been forced to put their jets up for sale
We are used to hearing the rich are getting richer but the credit crunch last year has taken its toll. Now it seems the rich are getting poorer faster than anyone else.
This is certainly a change of direction for wealthy investors as Merrill Lynch unfurls its global wealth management annual report today.
Wealthy may enjoy luxury yachts, but they are paying too much for wealth management
Pity the poor private client – well poor is probably the wrong word, but apparently the wealthy are getting a bum deal from many of the advisers and private banks that look after their money.
They pay the highest fees and get the worst performance, according to Alan Miller, former chief investment officer at New Star Asset Management and now partner at Spencer-Churchill Miller, a wealth management boutique.
Mr Miller has seen the light and is using low cost exchange traded funds to build portfolios for clients, as he explains in a video interview. He says making asset allocation calls is the key to making money, rather than picking stocks.