Five years ago, 388 people were as wealthy as half the people in the world combined.
While that’s a lot of money divided among a small number of people, it’s nothing compared to where that number stands today. Currently, the world’s 62 richest people hold the same amount of wealth as the world’s poorest 3.5 billion.
Two things happened in this past five years to contribute to this vast discrepancy:
- The richest 62 people in the world increased their wealth by 44 percent (to $1.76 trillion)
- The wealth of the bottom half of the world saw their net worth drop by 41 percent
The recession kept many people out of the stock market because they needed funds to hold them over during job loss or wage stagnancy. At the same time, wealthy people who kept their jobs and/or had ample assets were able to stay in the market, which happened to experience a period of booming performance — therein providing their large gains.
We believe that this experience illustrates the need to have patience in the markets no matter the circumstance. We can help you use your current assets to create strategies utilizing both investment and insurance products that help meet your long-term financial goals. Please remember that investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
CLICK HERE to read the article, “The 62 Richest People on Earth Now Hold as Much Wealth as the Poorest 3.5 Billion,” from The Huffington Post, Jan. 17, 2016.
CLICK HERE to read the article, “Where Is All the World’s Money Going?” from The Economist; Jan. 19, 2016.
With elections approaching, the growing divide of wealth has transcended economics and become a hot topic in the world of politics as well. According to one wealth expert, the most concerning trend for ultra-wealthy individuals is how the average person feels — and votes — this year in response to growing income inequality.
CLICK HERE to read the article, “How inequality harms health — and the economy,” from CBSNews, March 6, 2015.
CLICK HERE to read the article, “What does 2016 hold for the rich?” from Bankrate.com, Jan. 20, 2016.
CLICK HERE to read the article, “How the super-rich plan to invest in 2016,” from CNBC, Dec. 29, 2015.
Another interesting component for the ultra-rich is the ability to monetarily support political candidates who favor wealth-protection strategies. Lobbying has practically become an industry in and of itself: Corporations now spend about $2.6 billion a year on reported lobbying expenditures.
As financial advisors, we want to stay abreast of where money is being spent and where it is being earned. It is our belief that tracking the activities of the 1 percent may help provide a roadmap for where the average person may want to invest, but our goal is to look out for your individual needs and objectives. While most of us are unlikely to reach the level of wealth enjoyed by the 1 percent, we’re here to help you navigate your way to a financial future in which you can have confidence.
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.