Wealth is a burden, not a blessing
Recently, an elderly man with 20 million euros in his account sat in Looman's office. He had just been diagnosed with cancer and expressed relief that his finances were secure, but did not mention happiness about being alive. This is a common theme Looman sees in his long career. The wealthier his clients are, the more anxiety they tend to carry.
Fear accompanies wealth. Clients worry about losing their assets, about potential new wealth taxes, or about market collapses. During times of crisis, like the coronavirus pandemic or the war in Ukraine, they focus not on what remains, but on what has disappeared. A loss of 2 million euros feels more significant than what's still in the account.
German attitudes toward investing in stocks remain cautious, driven by a fear of losing money. Looman has seen this firsthand and often advises people who have inherited sums like 100,000 euros to invest in two exchange-traded funds (ETFs), one tracking the American S&P 500. But many resist, worried their investments could vanish. While the American and German markets might dip, they rarely collapse entirely, and long-term gains are more typical for those who stay the course.
Women, salaries, and silence
A woman in her 60s once shared with Looman that she had no idea she owned 70 percent of a 2 million euro portfolio. This is not unusual. Many women avoid money-related discussions at work and at home, often accepting lower salaries than they're entitled to. If a professional in a field like law or business could earn 60,000 euros, some are content with 40,000. Even after delivering strong performance over two to three years, they rarely ask for raises, fearing the conflict that might follow.
Over time, these small concessions add up to significant financial losses. The topic of money remains taboo for many couples, often leaving women financially dependent on their partners. Looman estimates that 90 percent of his clients are couples, and it's surprising how often the woman hasn't even checked what's in their portfolio.
Too late to save
A man in his mid-50s recently visited Looman with an income of 200,000 euros per year. He had spent years treating that income as expendable. Now, with a possible decade or more before retirement, he must begin to plan — if he starts at all. Time is a critical component of financial planning, but it is also finite. Delaying action makes it harder to catch up.
The problem is especially acute in housing. Many people, particularly near cities like Berlin, buy homes they can't afford, with prices around 700,000 to 800,000 euros. This can lead to financial strain and limited flexibility. For women who choose to leave the workforce to raise a family, Looman suggests that their partners should at least cover their pension contributions. While this is rare, young couples are slowly becoming more open to financial transparency.
Looman also sees a common issue among young people: they take too long to complete their training, sometimes doing several internships that delay their entry into full-time work. By their 30s, many have missed several years of potential earnings and career growth. If someone plans to use an investment in five years, for example, to buy a home or start a business, Looman would recommend a secure option, like a fixed-term deposit.
In short, Looman sees a wide range of financial behaviors and challenges across different ages and circumstances. His advice is rooted in practicality and realism, whether it's about investing, salary negotiations, or long-term planning for retirement. The key, he emphasizes, is to act early, to ask questions, and to avoid the mistakes that can cost people dearly over the years.
In a world where money is often a source of anxiety rather than joy, Looman’s insights remind us that true financial health requires not just money, but also awareness, action, and a willingness to face difficult truths — especially about ourselves.
According to Looman, many people, particularly women, make the mistake of not advocating for themselves financially, whether in salary negotiations or within their relationships. This reluctance to ask for what they deserve can lead to decades of lost income and long-term financial insecurity. Overcoming these silent choices is essential, especially when financial independence is at stake.
Looman has worked with around 2,000 individuals over his 40-year career, many of them high-net-worth individuals with assets between 1 and 100 million euros. What he has learned from working with such clients is that wealth can bring not just comfort, but also a heavy burden — one that few are prepared for.