One of the central truths I've discovered over my 20 years of working with wealthy individuals is that wealth often creates as many problems or dilemmas as it solves. I've always found this to be ironic, seeing how hard most of us strive for it. But it's true.
Case in point: the lack of privacy most wealthy people experience. The wealthier you are, the more difficult it is to be private. It doesn't matter how you came by your wealth – by selling a business, by being a senior executive of a public company, by inheriting it, by winning the lottery – here in the Google Age, family members, friends, co-workers, and the general public can gather a lot of information about you and your finances by typing your name into a search engine. (Try it on yourself for a quick privacy self-assessment.)
At best, this lack of privacy can be unsettling. Social alienation, awkward requests for financial “help” from family and friends, and endless solicitations for charitable donations are some of the unique challenges wealthy individuals must confront once the news of their services becomes public knowledge.
At worst, the constant assault on privacy can become a source of stress and anxiety. Once people label you as wealthy, you may become a target for telemarketers and others whose tactics may have a profound impact on how you and your family live your lives.
What can you do to stop this erosion of privacy? Unless you're willing to sell your home and live on some island, complete anonymity is an unrealistic goal. However, there are things you can do to push back and maintain some privacy in an increasingly public world.
Teach your family to value privacy
Those who know you best know the most about your wealth. That's why it's important to establish ground rules with your immediate and extended family about how much to discuss wealth, business interests, philanthropic interests and your lifestyle with others.
This is particularly important with teenagers and children, who can sometimes talk about where the family went on vacation, what car(s) mom and dad drive, or what they received for their birthday without truly understanding the implications of those discussions on family privacy. Family members need to learn the true meaning of discretion.
Make confidentiality a priority
One way to better ensure your privacy is to ask the professionals you work with (bankers, accountants, lawyers, wealth advisers) about the specific steps they take to keep financial information private.
