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Friday, June 01, 2012

the rich get richer - again

1 percent of the world's households controls 40 percent of the world's private wealth.
5 percent of Americans hold more than 55 percent of the nation's wealth.

The world's richest people got even wealthier last year despite the global economic crisis. And the elite "ultra-high-net-worth" (UNHW) club is set to get richer still over next five years the report by the Boston Consulting Group said.

The world's richest people are also getting richer faster than everyone else. While the world's total privately held wealth increased by 1.8% to $122.8tn last year, UHNWs' wealth increased by 3.6% to $7.1tn. The report predicts that UNHWs' wealth will rise 6.8% of the world's total wealth, by 2016.

There are now 12.6 million millionaire households globally. The US still boasts the most millionaires with 5.13m households in the top bracket. China at 1.4m, is within touching distance of Japan, which is in second place with 1.58m. Britain is in fourth place with 411,000 millionaires. 1,125 households in the UK hold financial assets in excess of $100m (£65m).

Number of millionaire households in Canada 185,000

The country with the highest “millionaire density” – proportion of population who are millionaires – was Singapore. More than 17 percent of Singapore’s households are millionaires. Emerging markets account for only 27 percent of the world’s private wealth, the total for which was $122.8 trillion in 2011, according to the study. The U.S., Western Europe and Japan control nearly three-fourths of the world's wealth.

''Millionaire'' and ''rich'' were considered synonyms, but it's not now.  More than four out of ten American millionaires say they do not feel rich. Indeed many stated they would need to have at least $7.5 million in order to feel they were truly rich.

Daniel Pluta agreed. A partner in his own firm alongside wife Natalie, he describes his own position as "comfortable". The pair have restrictions on what they spend, chip away at a mortgage and adhere to "some sort of budget". Pluta says being wealthy means not having to do any of this - and having enough put by that working is optional. "You would need to own your own home and perhaps a holiday house fully paid off, some investments in shares and plenty of cash reserves," he said. "Being wealthy is a mirage - the closer you get to it, the further away it is. As you accumulate wealth there are always new things to spend it on and a new level of things you can't afford."
James Gerrard, a financial planner at PSK Financial Services says "It's rare for those under 50 who haven't had a windfall, inheritance or floated their own start-up to have this kind of cash."
Peter Maniaty, the creative group head at advertising agency Euro RSCG explained being rich means "a lifestyle that's genuinely free from financial anxiety"
Hamish Robertson, a luxury property specialist at John McGrath agency in Sydney, said "Everyone is looking at the Joneses … They look at what the neighbours have and feel quite poor."
Echoing Karl Marx when he wrote "A house may be large or small; as long as the neighboring houses are likewise small, it satisfies all social requirement for a residence. But let there arise next to the little house a palace, and the little house shrinks to a hut."


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