Are you eligible for private banking services?
By: Zeng Han Jun, CPCG, Singapore
You could have been working really hard, building that business empire of yours, climbing that corporate ladder aggressively or rich because of a recent inheritance. You might not even be aware that you have reached the high net worth status that everybody’s been talking about. Just what is a high net worth person? Are you a high net worth person?
A high net worth person has financial assets of at least SGD$2,000,000 that can be used for investment purposes. For example, one of my clients has around $15,000,000 worth of savings in his personal account and a piece of property that is worth SGD$400,000. In total, his gross worth is about SGD$15,400,000. He is definitely in the high net worth category. Another one of my clients has a string of properties that has a combined worth of about $45,000,000. Large portion of his salary and rent goes into servicing his housing loans and he does not have much savings. He is working with a large amount of debts and is akin to walking on a tight rope. He has to walk really carefully and maintain a high level of balancing act in order to survive. Is he high net worth? He is asset rich but still not in the high net worth category. From the above real life examples, you can see the difference between cash rich and asset rich and how is the term “high net worth” being defined.
After reading this, some of you might have realized that you are already in the high net worth category, so what should you do? First of all, understand the fact that your money does not come easy, except for those who inherited their wealth. Being rich comprises of strategically and effectively making use of two tools: wealth generation and wealth preservation. You have fulfilled the part of wealth generation but to truly grow your wealth, you now need to preserve that wealth. Some of us resort to methods like Feng Shui which I do not disagree with, but it will definitely be even better if you use the service of a private banker. If you have accumulated a wealth of at least SGD$2,000,000, consider using the service of a private banker to guard and to further enhance your wealth. Try to get some recommendation from your friends or relatives who use the service of a private banker and determine if he or she is the right fit for you.
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