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There Are 199,235 "Ultra High Net Worth" People In The World With Over $30 Million In Assets
It is no secret that the bulk of "very rich people" in recent years has been created in Asia (where some $15 trillion in liquidity has entered broad circulation in just the past five years). As the FT reports, "Asia is producing more new wealth than any other part of the world at any point in history. Over the past five years, the assets of rich individuals have grown at triple the rate of the wealthy elsewhere, while the number of rich people has increased by twice that of other regions. Their number grew by almost 10 per cent to reach 3.7m last year, according to the survey, while their wealth expanded by 12 per cent to $12tn." However, to find the truly ultra-high-net-worthy (UHNW), those with over $30 million in net assets, one has to go to the US and Europe - the places where Ben's print baby print policy has most aggressively inflated the latest asset bubble, making the richest richester. "More people from the US and Europe entered this club in the past year than from anywhere else – the population in China and Brazil actually declined slightly." So how many ultra-high-net-worth individuals are there? The answer: 199,235.
Some observations on how the UHNW allocate their wealth:
They will often have $20m tied in a business, with $5m in property and $5m to play with, says Mykolas Rambus, chief executive of Wealth-X.
...
For those with $30m or more, the first thing they want to buy once they hit that bracket is an aircraft, according to Bassam Salem, chief executive of Citi’s private bank in Asia.
“The newly rich are a bit more exuberant in terms of showing their wealth initially,” he says. “But it takes a little while to become ultra-wealthy for most. The richer you are, the less you want to show it in many countries.”
The exception to this is mainland China, where more people have become vastly rich in a much shorter time because of the explosive pace of growth in recent years. The average age of Citi’s ultra-rich clients in Asia excluding Japan is about 70, according to Mr Salem, whereas in China it is 35.
Another stunning age-related detail: "the average age of millionaires in China is about 33, but that of the world’s ultra-wealthy is 52."
Naturally, the ultra wealthy - especially those from China - are the target audience of the UHNW advisors of the world.
“The reason this market is so lucrative is that a lot of the wealth is not very liquid yet,” he says. “They are likely to have a monetising event within a couple of years, like a listing, and they tend to spread their wealth around among a number of banks.”
There are many more potential clients among those with $5m or less, but they might only have liquid assets of $250,000 or less. “You cannot make money out of that in today’s high cost regimes,” Mr Rambus adds.
The newly rich can be much more demanding clients for private banks and other wealth managers, partly because they can take some convincing that a service they have never used or thought about is worth paying for. On top of this, as they are normally still tied in with their businesses, their investment expectations are for much higher returns than those who have been wealthier for longer and are more interested in preservation.
Sigh - the hard life of advising those for whom money is no object what to invest in...
Finally, if one moves beyond the merely UHNW set, and focuses squarely on the world's billioanires, of which there are roughly 2170 as we observed previously, the story is a little different.
As Wealth-X reports, the average billionaire is worth US$3.0 billion with a liquidity of 18 percent, equal to US$545 million in cash and other liquid assets per person. This liquidity cushion of over half a billion dollars is higher than it was before the global financial crisis of five years ago, suggesting that the old mantra of “cash is king” remains as relevant as ever.
Private holdings still form the largest component of a typical billionaire’s wealth, with an average of over a US$1 billion in publicly-held companies on top of this.
The breakdown of the average billionaire’s wealth can be seen below:
Ah, the New Normal: $3 billion in assets for some, Wal-Mart stampedes for everyone else.
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WEALTH EFFECT
$5M with 6% interest rate nets rich household $300k/year to live on
$30M with 1% interest rate nets rich household $300k/year to live on
not including interest reinvestment to keep the principle up with inflation
The mother of all illusions which doesn't affect just the rich but also every retirement plan.
Most Of These UBER-RICH People Are Rich In HARD-DRIVE Virtual Fiats Money.
They Are RICH On The BANKS's Computer-Room Hardware!
ANY Real GOLD??? Naw. ...Beware...
30 million dollars!
wow.
1 thousand people with 30 million dollars of wealth!
wow.
that's 30 billion dollars!
wow.
10 thousand people with 30 million dollars of wealth!
wow.
that's .. umm .. 300 billion dollars!
and 100 thousand people with 30 million dollars of wealth?
wow.
3 trillion dollars! does that have the right number of zeros?
and 200 thousand people?
6 trillion dollars!
damn.
that would take 6 years of fed asset purchases.
good thing there's an ECB.
and a PBOC.
Not exactly correct as your figure is a minimum net worth for that group but the # $30 million is a threshold not an average. I would suggest that 90% have between $30 and $299 million, 9% have between $300 million and $3 billion, 0.9% have north of $3 billion.
But taking 200k people and 12 million BTC we come to an average of 60 BTC per person if they all averaged in 2014. Considering an investment of 1% of net worth BTC 300,000/60 = $5000 per BTC. But the market is far more inelastic than this. Holders gotta hold. Price gotta rise. Herd gotta move.
In other words, if you wish to raise your fortunes to the level of these 200k persons, simply buy and hold 40-60 BTC.
you dont get it for those 200000 : 30 million is the LOWEST percantile.
The richest guy is worth 80 billion.
THe total asset wealth of this bunch is 33 T and growing every month.
I hope they enjoy their millions of "dollars" while they last. How much satoshi is that again?
See "network effect".
I see 200k in divorces or accidents in the coming year
30M!
phew!
Would not even get out of
bed
for
that!
EAT the rich. Tastes like chicken.
No, long pig.
I for one am grateful that all of this wealth was transferred to China so that a few multi-national corporations could pay their executives 10 figure bonuses every year.
Spot on! As long as the C-Suite can cash out HUGE and take a portion of the spoils to bribe the politicos, I'm fine with it. True, my personal income is down by 50%, but I don't begrduge the looting and savaging of the economy as long as a hard-working few can live like Kings.
"The world needs ditch diggers, too"
-Judge Smales
I wanna be rich. I don't wanna work in no ditch.
Klark Kent
http://www.youtube.com/watch?v=qnwQsnMGlPU
You cannot run a profitable business with excess labor. Any small business digging in the ground will only have enough employees to drive and operate the ditch digging equipment. Or else you will no longer be in business.
Please do not count the Public Sector workers standing around with shovels they have no interest in making a profit. They need employees to pay dues to elect politicians who will make sure they still have a job.
"You also need people to fill them in to create value".
John Maynard Keynes
I'm richer than Warren Buffet. I can still get it up and use it often.
A lot of things are worth more than a bank account.
Yeah but he can pay other people to get it up for him.
/sarc
Bee-hot-chez, bitchez!
Sorry, couldn't resist.
There were a lot of very wealthy people in Pompeii once upon a time as well. Lots of volcanoes these days.
Bad news for the "Ultra Prodigal" Governments - $500 million liquid assets times 2000 billionaires is only $1 trillion - not enough to pay 1 years' US Budget deficit. Even if they could steal everything, we're only looking at $3 billion times 2000 or $6 trillion - Obama blew through that in 4 years. (GW was not much better - it took him 8 years).
To coin a phrase from fishing conservation, any wealth stealing has to be sustainable - you can not steal money faster than it is being replaced. Otherwise, you will end up like the New England Cod Fishing Industry.
The problem is not that the "Ultra Rich" are getting more rich but that the "Ultra Prodigal" Governments are getting more prodigal - government spending is totally out of control, it is in a bubble.
The richest 1000 or so people on the planet are worth an estimated $5.4T, which doesn't include the assets no one knows about (probably multiples beyond that). http://www.forbes.com/billionaires/ About $1T of the U.S. Budget each year goes to interest on the debt (money that goes to those families), and the MIC. And that doesn't count the NSA, Homeland Security, and other programs that we don't need. http://www.google.com/imgres?imgurl=http://thefalconpost.com/wp-content/uploads/2009/08/Budget-Pie-Chart.jpg&imgrefurl=http://www.democraticunderground.com/discuss/duboard.php?az%3Dview_all%26address%3D439x1652260&h=1398&w=1916&sz=339&tbnid=J8mNzPzjHVBKtM:&tbnh=97&tbnw=133&zoom=1&usg=__EQxlS7VFij4FViauTzw6IBnQtSM=&docid=TcOz6dmbmc2_fM&sa=X&ei=cruYUoPTMY22kQeA4oGQBA&ved=0CFAQ9QEwBw
The future will need Pyramids with Sarcihagus to have the Slaves er I mean the Sheeples er I meant the Servents to be with their masters. Coming soon to the Amerika
% by "religion" of the lucky 199,000 please -might be interesting?
FED RESERVE/ECB/CBC/BOE will be the Temples for these folks.
Every one needs to inform the jesuit Pope where he find all that wealth he says needs to be redistributed, start with the rothschilds and their agents
He knows there is a problem and he knows there is a solution. What he also knows is that he has very little chance of achieving any real change..
A guy named Jesus was in that situation some time ago.
Jesus is proud of Black Friday
I assume the drug cartel leaders didn't respond to this poll.
You mean the CIA?
only $30 million to be in the top 200K moneywise? That is shocking. We all broke
that's pretty much what I thought too.
I wonder what the average net worth of the richest people of US was before the 1929 crash...and how many there were...
Russia was full of high asset princes before Oct 1917; it all vanished into thin bloshevik air. Not saying I want a repeat performance, just saying don't tempt the devil.
Maybe its already too late; He has been tempted and that spoon was not long enuff!
535 of them are in the Congress and Senate. You have more in the Executive Branch and Most of them spread throughout the Judicial system. All are paid by the Yellen, Blankfein and Dimon as the shakedown of America continues.
And I'm not one of them.
Wealth proudly built on the destruction of Americas' manufacturing sector and overall prosperity.
By coincidence, Jesuit Pope Francis has exactly 199,235 people on his Christmas card list this year.
http://rt.com/news/pope-francis-capitalism-tyranny-324/