Thursday, September 4, 2014

The Hidden Trust Fund Luxury Market

Author: Albert Goldson

The media incessantly portrays trust fund kids as the offspring of billionaires and multi-millionaires who race around in Maseratis, dine at Michelin rated eateries, and party at exclusive clubs worldwide thanks to daddy’s platinum or black credit card generally leading the good life “without an apparent day job and no visible means of support.”. Although that may be true, that demographic is significantly larger with respect to a different kind of trust fund kid. The underground trust fund kids represent the hidden luxury market. These are the ones that the media almost never report about who probably work next to you at your job in private industry, in non-profit and even in government.
Indeed this different economic demographic of trust fund kids tend to keep their status on the ‘down-low’ for personal and professional reasons. They’re usually from well-off but not necessarily rich families whose parents have purchased for them, in full, a modest condo in a gentrified neighborhood.
After the residential purchase the young adult is on his/her own with respect to all living expenses: utilities, common charges, food, entertainment, whatever. In other words they have a fully-paid a roof over their heads with mortgage-free ownership.
Of course with this secret cool arrangement (except for close friends - maybe) they can live normal lives without anyone sneering at them for being some snotty trust fund brat thinking he or she is better than they are. They basically want to live a normal social life and not necessarily in the hermetically sealed bubble of truly wealthy trust fund kids whose real-life experiences are stunted. Professionally they don’t want to be passed up for raises or promotions because of their “wealthy” status”. They’re justifiably trying to avoid envy – being a target. They’re financially secure so that their personal and professional stress levels are dramatically reduced with the perk of being of being a non-celebrity.
This is the quiet, underground luxury niche market buyers with zero long-term debt who earn middle class salaries consistently make high-end purchases. Mortgage free is good even if they don’t own a McMansion. Data mining to uncover gold nuggets like these is a worthwhile pursuit for large and specialized luxury goods & services firms. Additionally, this market may be more profitable in the long-term because debt-free buyers can more easily whether economic downturns. A Wall Street numbers cruncher making $300,000 a year may have a crushing mortgage on a $2 million condo. Yet a non-profit trust fund young manager with a more secure job and no debt has more disposable income percentage wise now and in the future. It’s the hidden luxury market of quiet trust fund kids.

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