I'm a financial planner — here are the 7 questions my richest clients ask by Jeff Rose on Oct 31, 2017, 10:44 AM Advertisement
 - The financial concerns of upper middle class or even "filthy rich" families are different than those whose incomes put them in the middle.
- Upper middle class households in the US earn more than $125,000 a year, and the top 1% earns over $389,436.
- Jeff Rose, a certified financial planner based in Denver, shared the seven questions his richest clients ask most often.
While the wealth you need to be considered "rich" is definitely debatable, a certain level of income will make you wealthy in the eyes of most Americans. According to the Pew Research Center, around 20 percent of Americans were considered upper middle class last year, having incomes greater than $125,000. At double the median household income (which was $59,036 in 2016), families that fall in this range tend to live financially comfortable lives – lives that others around them may even deem "rich." So, even if you don't feel rich at this level, you probably are if you look at the grand scheme of things. As a financial adviser, I deal with plenty of families in this income range. But, I also meet with families who earn significantly more than most of us – and even those in the 1 percent. By and large, the financial concerns of families who are considered upper middle class or even "filthy rich" are much different than the concerns of those whose incomes put them in the middle. 7 Money Questions the Rich Always Ask If you're angling to join the ranks of the upper middle class or the rich, it helps to get inside their heads. What makes them tick? What are their financial goals? Further, what do the rich worry about when it comes to money, and how can you learn from their mindsets to grow your own wealth? Here are some of the most common money questions the rich always ask: SEE ALSO: How much you have to earn to be considered rich in every state SEE ALSO: Rich millennials are ditching the golf communities of their parents for a new kind of neighborhood Do I really have enough?  Believe it or not, even the rich wonder if they have enough assets set aside to retire. Even if you have millions of dollars in the bank, it can be difficult to believe you don't have to work or pursue wealth again. No matter the size of their nest eggs, the rich worry about having enough money to get through old age while also leaving a legacy behind. They worry about the future costs of nursing home care, whether their life insurance policies are sufficient (and aligned with their financial goals), about inflation, and how the world might change in the next ten, twenty, or thirty years. Most of all though, the rich have a serious case of FOMO at all times – that's is the "fear of missing out." If they quit working or actively building wealth now, they worry they'll miss out on the next big thing. I use the same formulas and tools to help my rich clients as anyone else, and I strive to help calm their fears about the future. Like anyone else, the rich need a solid foundation of investments and a nest egg large enough they can take regular contributions without depleting their assets before they die. They need proper insurance policies in place, and they need to know approximately how much they plan to spend every month. Once their ducks are in a row, all that's left is giving themselves permission to let go. It's difficult to build wealth that lasts a lifetime and well into the next generation, but sometimes it's even harder to know when to stop.
Will today's political climate affect my investments?  The day's political climate tends to rattle the rich no matter who is President, but it's especially true today. At the moment, rumors abound that the tax advantages for 401(k) contributions could drop to some obscene amount like $2,400. The rich, who tend to take advantage of tax-deferred retirement accounts, worry what that means for their income taxes – as well as what these changes could do to broader stock market returns. The rich worry about new tax plans proposed by, well, anyone. When the hammer drops, will they end up having to pay more? Will the inheritance tax be beefed up due to political pressure? Will capital gains taxes be raised? Will the carried interest loophole finally be squashed? While nobody has the answer to these questions, I tend to remind my clients that there will always be speculation. You can't plan a tax and wealth strategy based on rumors, so we'll deal with whatever blows come our way as they come. And if [insert investment strategy or tax loophole here] changes in a way that makes it less valuable, we'll find another, better way.
What is the best way to teach my kids how to preserve wealth?  While minimizing taxes is always a concern for the rich, they also want to set their kids up for financial success. Unfortunately, this is one area where the true "rich" seem to struggle. Because they often live luxurious lifestyles, it can be difficult for them to impart important financial lessons on their children. Think about it this way: A middle class (or upper middle class) family does their own grocery shopping. They can show their kids first-hand the importance of shopping sales and stretching the money they have to spend. They likely cook meals at home to save money, or shop second-hand to buy nicer clothes at a discount. And their kids grow up watching them do it. "Rich" families, on the other hand, don't have the same daily money lessons built in. They usually have assistants to pick up groceries and prepare meals, and they wouldn't necessarily bother buying anything used to save a buck. It's not that they're not financially savvy; it's that the extra steps they need to take to save more money may not be worth it. The daily lessons rich kids miss out on can leave them at a disadvantage, notes financial planner for dentists, Brian Hanks. Hanks says his clients, many of who retire very wealthy, are adamant about not letting their wealth screw up their kids. He points to the book "Fortune's Children" about the Vanderbilt family. The book describes how Cornelius Vanderbilt was the world's richest person in 1877, yet less than 50 years later no Vanderbilt was counted among the world's richest. According to Hanks, Thomas Stanley describes the modern version of this effect in his book "The Millionaire Next Door" when he points out the differences in children of millionaires who receive "economic outpatient care" and struggle, versus those who don't receive as much help and thrive. "The answer to the question is never easy, but almost always ultimately comes back to passing on the values and priorities that helped the wealthy become that way - instead of passing on money," says Hanks.
See the rest of the story at Business Insider
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