Assets Declared By The Tharoors

wealthymattersIf you keep up with the financial press,you’re bound to be familiar with the asset allocations that  ‘financial advisers’ recommend.Personally I believe that they are often the beliefs of the financially struggling imposed on financially unsophisticated people,looking for assurance and approval.

The financially well off report asset allocations that are very different from that of the “ideal”recommended by financial advisers.Of course it could be argued that they are only reported assets and unreported assets can’t be ruled out and the total bears a greater resemblance to the “ideal” .Alternatively it could be said that there ought to be one allocation for those hoping to be wealthy vs. that suitable for the wealthy.

My belief is that the well-to-do get that way by doing things substantially different from the masses. Their asset allocation is the reason for their wealth not a result of it.My belief is reinforced by the case of the Tharoors.Link

Just observe the large cash equivalents,preference for real estate and alternative investments like antiques,high quality watches etc. along with the more conventional Indian preference for gold jewelry.Mutual funds and insurance products are conspicuous by their absence.Their asset allocations might be far from the “ideal” but their net worth is nothing to sneer at,especially as they have no businesses to help earn their incomes.And one way or another,both have had to earn their fortunes.

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