Global Wealth Reports: You (Yes You) Might Be Among World’s Richest Top 10% , and Not Even Realize It…

You are probably much higher on the global wealth pyramid than you think: If you have only US$2,222 (add together bank deposits, financial investments, property holdings, and subtract debts) you are wealthier than 50% of world’s adult population… If you have over US$71,560, you are in the top 10%... Or if you have over US$744,400, then you are member of the global elite 1%… That’s according to the Global Wealth Report by Credit Suisse Research Institute…

Unlike many studies of prosperity and inequality the Credit Suisse Institute Report counts household ‘assets’ rather than just income. And according to the Institute calculations the world’s households own property and net financial assets worth almost US$256-trillion, in mid-2016. That is about 3.4 times the world’s annual GDP. If this wealth were divided equally it would come to US$52,819 per adult; but in reality the top 10% own 89% of it…

The top 10%ers include about 44-million Chinese (over 4.0%) and about 21-million of Americans (over 5.0%) of the countries’ adult populations… also over 18-million Americans are 1%ers– these are many of the same people who complain about the global elite, and probably don’t even know they belong to it… Also, the global bottom 10% have peculiar mix, including; many of poorest countries and a surprising number of Americans (over 2-million) whose debts outweigh their assets…

Credit Suisse Wealth Report 2016: The term wealth is defined as the value of financial assets plus real estate (housing) owned by the households, less their debts… The study focuses on the wealth held by adult populations across more than 200 countries, including; the billionaires at the top of the wealth pyramid, to the middle and the bottom sections of the pyramid. The analysis comprised the wealth holdings of 4.8 billion adults…

According to the report; in past 12 months global wealth has risen by US$3.5-trillion to US$256-trillion, which represents increase of 1.4%. However wealth creation has merely kept pace with population growth. The report further suggests that wealth inequality– measured by share of wealthiest 1% and wealthiest 10% of adults as compared to the rest of the world’s adult population continues to rise…

While the bottom half collectively own less than 1% of total wealth, the wealthiest top 10% own 89% of all global assets… Currently an estimated 9% of adults, globally, are net debtors… Also, half of all adults in the world own less than US$2,222, and the bottom 20% of adults own no more than US$248… The richest nations with wealth per adult over US$100,000, are found in North America, Western Europe, and among rich Asia-Pacific and Middle Eastern countries…

BCG Global Wealth Report 2016: Global private financial wealth grew by 5.2% in 2015 to US$168 trillion. The rise is less than previous year, when global wealth rose by more than 7%… Significant slow-down was seen in North America (2% in 2015 versus 6% in 2014), Eastern Europe (6% versus 11%), and Western Europe (4% versus 6%), with North America posting the lowest growth rate of any region. In Western Europe, uncertainty about the future of European Union and continued low commodity prices weighed on equity and bond markets despite a generally promising start to the year.

Some developing regions experienced significant slowdown because of political unrest, international sanctions, and general economic tension. As in recent years, the highest growth in private wealth was seen in the Asia-Pacific region (13% in 2015, versus 14% in 2014), while lowest growth in the developing markets occurred in Middle East and Africa (3% in 2015, versus 4% in 2014), where low commodity prices and political instability led to lower equity and bond markets…

Wealth-X World Ultra Wealth Report 2015-2016: This report reveals that there are 212,615 ‘Ultra High Net Worth’ (UHNW) individuals globally, holding a combined wealth of US$30-trillion in net assets… The world’s ultra wealthy population shows almost flat growth in 2015 as the number of individuals with US$30-million or more in net assets grew just 0.6% and total UHNW wealth increased by 0.8%. Despite this meager growth UHNW individuals who account for just 0.004% of the world’s adult population, still control 12% of its wealth…

In Europe, Middle East and Africa UHNW wealth fell 2.4% as equity markets, local currencies and gross domestic product collectively experienced negative net returns. By contrast, Asia-Pacific had 3.9% increase as the ultra wealthy in certain markets benefit from dynamic business expansion and economic growth. In the Americas, it was Latin America rather than North America that helped the region achieve a modest 1.5% growth in ultra wealth value…

According to this report; 2015 billionaires saw their wealth grow by 5.4%, which is more than double the rate of global economic growth. While collectively other tiers saw their wealth shrink by 0.6%. Other key findings include:

  • UHNW global wealth is expected to reach US$46.2-trillion by 2020…
  • UHNW wealth is expected to grow at a compound annual growth rate of 9%…
  • UHNW population is expected to exceed 318,000 by 2020…
  • UHNW female population remained steady at 13%, their share of total UHNW wealth fell from 14% to 11% this year. Average female high net worth dropped from US$147-million to US$126.3-million…
  • UHNW male wealth increased 2.4% from US$139.8-million to US$143.1 million, reflecting a greater focus on self-made wealth and higher-risk asset composition…
  • UHNW wealth in two-of-three cases is purely self-made rather than inherited…
  • UHNW wealth in under age-30 demographic accounts for just 1% of the world’s ultra wealthy population and 0.3% of global UHNW wealth…
  • UHNW individuals age-80 or over are seven times wealthier than those under age-30, and are worth nearly double that of average UHNW individual globally…

The biggest reason the ultra rich are getting richer while the poor are getting poorer is because wages for the middle-class in countries like U.S. have stagnated in recent decades, and because ‘investments’ is being rewarded, but not ‘labor’… One key trends underlying the huge concentration of wealth and incomes is the increasing ‘return to capital’ versus ‘return to labor’… In almost all countries, the share of national income going to workers has declined…

Wealthy people don’t build their wealth by accident, or even overnight. Becoming wealthy takes serious will power and long-term vision. You have to be able to keep your eye on the prize of financial freedom, and be willing to sacrifice present wants for the sake of future wealth… Contrary to popular belief, you don’t need to be an expert about finance…  You don’t need to come from an affluent family… You don’t even have to earn a massive paycheck…

For most people it all boils down to one thing: Investing… According to Ramit Sethi; wealth isn’t measured by the amount you make each year, but by how you save and invest the money you make... It’s how you manage– money, assets, investments… with goal of becoming wealthy and financially independent, over time…

A very wise investor once said– pick the traits you admire and dislike the most about wealthy people, then do everything in your power to develop the traits you like and reject the ones you don’t. Mold yourself into who you want to become, and you will find that by investing in yourself first, wealth will begin to flow into your life…

Success and wealth, beget success and wealth. You have to purchase your way into that cycle, and you do so by building your wealth one dollar at a time and invest each dollar, so that it works for you– every day, every week, every month, every year…