By: Alex DavenportThe world’s wealthiest people are living the high life in new ways, including owning private jets and even going to war in new wars.
As the world grapples with climate change and other economic challenges, some have begun investing in more expensive homes and luxury properties to preserve their wealth.
But a new report by the U.K.-based Institute of International Finance suggests that many are living dangerously, spending too much and not properly safeguarding their assets.
While there are exceptions, the report says the rich are “increasingly spending on high-end properties, such as cars and mansions, while many are investing in high-risk investments, such like real estate and investments in companies, and are not investing in long-term investments like infrastructure, schools or other social good projects.”
The Institute’s report, “The Luxury Economy,” finds that wealthy people are moving into luxury housing as they pursue lifestyle choices such as owning a private jet or taking on large business roles.
But the report also found that a disproportionate share of the wealthy were also spending on risky investments.
The report says that “over 90 per cent of the world population is at risk of financial or personal bankruptcy, with the majority of this estimated at an estimated $1 trillion per year.”
The wealthy have the ability to invest money in their own companies, buy luxury properties and even go to war for personal gain.
While these kinds of moves have not always been illegal, they have raised questions about the ethics of wealthy individuals who are taking on new risks to protect their wealth, particularly when it comes to war.
The wealthy, according to the report, are spending more on luxury properties, but not properly protecting them, which could be due to insufficient oversight, lack of regulation or a lack of financial security.
The study found that some wealthy people were spending more than $20 million per year on luxury investments, with almost two-thirds of the wealth of the wealthiest individuals being spent on the luxury category of properties.
The Institute of Internal Revenue said that while some wealthy individuals had taken on more risky investments, they were not required to do so by law.
“Some are making this investment because they see it as an investment that can help them survive in a difficult economic environment,” the report said.
The U.S. Senate is considering a bill that would prohibit individuals from profiting from the use of their tax-exempt status to benefit other individuals, and to make personal gains from such investments.
It is also proposing to impose a tax on investments made by individuals to prevent tax evasion.