The wealthy are conditioned by their peers to have high degrees of cultural capital. As a generalisation, they understand money, they understand taxes and they understand Corporate Trust structures. In our observation, the wealthy have greater academic and financial literacy than their less affluent counterparts.
What differentiates the wealthy is they wish for control and transparency of their investments and this is the key distinction. Often, they want to become richer and they have the cultural framework to do so.
When dealing with the wealthy, rarely do they need help in setting goals for they know what their goals are.
In contrast, when dealing with the middle class and the socio-economically disadvantaged, they need convincing that setting goals will add significant value and direction to their lives. The less affluent are often like Alice in Wonderland standing at the crossroads and not knowing which path to take. Alice did not understand Wonderland and those other than the wealthy often do not understand the financial world in which they live.
When you are a Financial Planner, dealing with the less privileged is in essence a role whereby you are introducing them to the world of finance. In the allegory of Alice in Wonderland, the world of tax rates, depreciation, superannuation, insurance, mortgage structuring, asset growth and income can be as foreign to them as Wonderland was foreign to Alice.
Alice had no goals because she was lost! The poor often have no goals because they are often lost in the financial system.
