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:
1.
The
richest 62 people in the world increased their wealth by 44 percent (to $1.76
trillion)
2.
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.
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.
AE03165038C