BMO Private Bank Wanted To Know About High-Value Clients’ Hobbies
Buying a classic car or a fabulous piece of art offers wealthy people the psychic rewards they might not find by rebalancing their 401(k) accounts.
BMO Private Bank wanted to learn just how passionate Minnesotans are about hobby investing in antiques, jewelry, art and other objects of value. So the company surveyed affluent Minnesotans and discovered 63 percent are involved in some kind of hobby investing. Art tops the list, with 27 percent of those surveyed owning valuable art.
“That absolutely made sense,” says Steve Marsich, Twin Cities senior vice president and managing director of BMO Private Bank, Minneapolis. “The Twin Cities has an exceptionally strong art marketplace.” He’s seen many high net worth clients developing their art appreciation through ties to the Minneapolis Institute of Arts and the Walker Art Center.
Marsich says BMO financial advisers see a variety of valuable objects in clients’ portfolios. He was curious about the most popular hobby investments. Sixty percent of the Minnesotans surveyed said they do hobby investing because it’s fun. But that entertainment comes in many different forms.
Art aficionados were followed closely by people who collect antiques, at 25 percent; jewelry and coins, 22 percent; and sports memorabilia, 17 percent.
When a client chooses to spend money on hobbies, he says, “sentiment and emotion might trump the hard dollar.” But Marsich says it’s critical for his financial advisers to have conversations with clients to ensure that sports memorabilia is properly authenticated and that art work is fully insured.
Now that he has hard data about the prevalence of hobby investing among high net worth clients, Marsich says he and his team of financial advisers will serve in a connector role. For example, one client has a significant car collection. “He’d love to showcase it for a small group of [BMO] clients,” Marsich says, who have a common interest in cars.