The Hindu Business Line : Worry? Me? That's rich

Wished you were a billionaire in these trying inflationary times? If it’s any consolation to you, then the New York Times reports that “in tough times, even the billionaires worry”.

A psychologist working for an advisory services firm for wealthy families in California says she has noticed rising anxieties about spending. Another psychologist working with wealthy patients in Massachusetts finds that “the worry increases with the size of the holdings.”

The fear of losses preys on their deepest fears about money, he says. His advice to them: Don’t make big investments without help from trustworthy advisors.

Sometimes the sheer numbers involved in the losses can overwhelm the wealthy losers, says another Manhattan-based psychotherapist.

“For example, their income may have shrunk to $2 million in 2008 from $20 million in 2007, or their $10 million in stocks may have lost 10 per cent of its value. These declines can stir up insecurities.” And memories of past struggles.

Some advisors are glad that their richie-rich clients have learned a lesson or two on scaling back extravagant spending.

They report, however, that most wealthy worriers have not cut back on charity, as they are “hooked to the satisfaction they derive”.

Advisors also point out to clients that the economic upheaval benefits them too… surging oil prices energises their power stocks and rocketing travel costs add zest to their international portfolios.

Not to mention, all that extra business for the shrinks and therapists!

Malathi Ramanathan

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Worry? Me? That's rich