Canadians are enjoying some of the fastest wealth growth in the world. For some, it might just be a stroke of luck that will not last. For others, it is real riches that will become multigenerational wealth. What separates these groups? How do you know which you are really in? How do you make the leap? And how do you approach wealth management?
According to a recent World Wealth Report, Canada is even minting millionaires 11% faster than America. We are now ranked 8th on the world map for having the most High Net Worth (HNW) individuals. That’s those with $1M or more in investable assets (not counting your personal residence).
Of course, most Canadians are not on the level of Spanish retail billionaire Amancio Ortega. Or Jeff Bezos, whose new experiments with brick and mortar retail stores have helped him add billions to his wealth in just days.
Still, despite economic challenges in Europe and Asia, and tales of some lower end retailers struggling to restructure businesses, data from luxury retail goods giants Hermes, LVMH and Kering show strong growth, with some rates of growth as high as 8%. That trajectory still seems on track, and may only accelerate over the next year.
However, there is still a great difference in having a nice car and big mortgage, and dressing well, versus being truly wealthy and being able to afford a sustainable retirement, a fabulous end of life send off, and a lot more.
You’re Well Off if:
- You have floors in your house you just visit once a month to check if they are still there
- You pay a lot of tax
- You fly first class
- You have a few rental condos
- You’ve got more than $250,000 in your retirement accounts
- You still vacation in Florida every year
- You’re able to pay off your credit card bills every month
You’re Truly Wealthy if:
- You own shopping plazas
- You pay little in taxes compared to your wealth and income
- You charter private jets or own one
- You believe 100 is the new 80
- You’re not worried about keeping up with selfies on Instagram
- You’ll be just fine if you never work for someone else again in your life
Canadians are becoming richer at a faster pace. This is leading to a lot more spending on luxury goods. For some it’s just for show, at the cost of financial stability in retirement. For others it’s real wealth that will give the next generation a great head start. Making the leap to being wealthy versus just looking like it, isn’t about how hard you work, but how smart you invest, how big you think, and how hard you make money work for you. ReDev Properties is a Canadian property investment firm specializing in retail properties, with over $2B in transactions. ReDev not only provides investment opportunities for the ultra wealthy, but diversified investments for those looking to change the dynamics of their finances and wealth in a meaningful way. Contact us today to find out how we can help you.