While the rest of the world cuts back from the recession, a recent survey by Barclays Wealth and Ledbury Research shows that high-net-worth individuals in the United States and the UK remain committed to charitable giving.Î¾ Author Niall Gannon has written a book called Investing Strategies for the High Net Worth Individual: Maximize Returns on Taxable Portfolios.
"The attitude among the wealthy and even the not-so-wealthy has been strengthened through this global recession because I think a lot of donors realize that their donations are needed now more than ever.Î¾ And we've observed that that entrepreneurial spirit that built the wealth in the first place was probably there throughout their entire lives.Î¾ For those who are new to the concept of giving, though, we advise them to definitely look into their heart first.Î¾ There can be a risk of over-analyzing the tax impacts or the different models that can be used."
Gannon defines "high-net-worth" as those with average investable assets of $5.4 million.Î¾ There's no denying the tax benefits of giving, but Gannon says people have good intentions.Î¾
"There definitely would be a decline in the amount of philanthropic gifts if the tax benefits of those gifts were to be diminished.Î¾ I think it's safe to say that the attitude towards philanthropy begins first at the heart, and secondly maybe at the wallet and at the tax return.Î¾ Because certainly the earthquake was not in anyone's expectations, and many families chose to fund all of their existing pledges — plus additional ones — for the earthquake."
There is some tailoring of investment strategies required that's different in times of boom or bust.Î¾ Gannon's book looks at portfolio diversification, after-tax returns of stocks versus bonds and managing risk in alternative investments, commodities and hedge funds.