GENEVA (Reuters) - The head of private banking at Spain's BBVA (BBVA.MC: Quote, Profile, Research, Stock Buzz) has a simple formula for helping rich clients decide how to invest their wealth.
"We think there's only three reasons that they want their money for -- one is to stay rich, one is get richer, and another is to enjoy it," Daniel de Fernando Garcia, head of asset management and private banking at Banco Bilbao Vizcaya Argentaria, said at the Reuters Wealth Management Summit in Geneva on Tuesday.
Fernando said choosing only one form of investment strategy proved to be most effective for wealthy clients.
"You can only allocate among one of them," he said. "You cannot pretend to stay rich and get richer. You cannot pretend to get richer and enjoy."
Clients who try to choose two of those strategies run into trouble, for example buying a painting for enjoyment and one as an investment were entirely different ways of spending money, Fernando said.
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