Tags: ultra-wealthy | net worth | wealth | Smiles

Wealth-X Survey: Ranks of the Ultra-Wealthy Have Increased 6 Percent in 2013-14

By    |   Wednesday, 19 November 2014 02:23 PM

Given the rise of many global stock markets this year and last, it probably won't surprise you to learn that a lot of people are getting quite rich.

The number of individuals worldwide with assets of more than $30 million climbed by 12,040, or 6 percent, in the year ended June 2014, to 211,275, according to the Wealth-X/UBS World Ultra Wealth Report.

Their net worth totals $29.7 trillion, far surpassing the U.S. GDP of $16.8 trillion for 2013.

Although the ultra wealthy account for only 0.004 percent of the world's adult population, they control almost 13 percent of the world's total wealth.

In the coming five years, Wealth-X forecasts that the ultra-high net worth population will reach 250,000 individuals and their combined wealth will almost surpass $40 trillion.

Although North America and Europe continue to have the most UHNW individuals, the Middle East and Africa were the two fastest growing regions in 2014 in terms of both UHNW population and wealth.

But while financial markets have benefited from investors' willingness to take on more and more risk, these ultra-wealthy investors are apparently turning cautious.

"This report finds that UHNW [ultra-high net worth] individuals hold nearly 25 percent — an extremely high proportion — of their net worth in cash, and the prices of many large-ticket items that may better represent the consumption patterns of UHNW individuals have significantly outpaced broad inflation measures," Simon Smiles, chief investment officer at UBS Wealth Management, said in the report.

So what risks are these folks taking?

"Wealth concentration is perhaps the biggest risk facing UHNW individuals," Smiles said. "Individuals have over two-thirds of their wealth in their core businesses."

Meanwhile, CNNMoney offers five tips to help you find investment success. But obviously you shouldn't expect to reap multiple millions if you aren't already quite wealthy.
  • Know the fees on your investments. Cost needs to be at the forefront of the decision-making process, they can really eat away at returns, which no one wants no matter their income level," Scott Keller, a principal at Truepoint Wealth Counsel, told CNNMoney.
  • Don't waste too much time looking for the next big thing. "Our high-net worth clients . . . focus on wanting to own the whole market and use a low-cost index," he added.
  • Know your risk tolerance. "Set the number you need to have at the end of the year to make you sleep at night," said Mindy Rosenthal, president of the Institute for Private Investors.
  • Unsexy stocks can be very hot. Doug Lockwood, branch president at Hefty Wealth Partners, stressed that just because a company is in the headlines every day doesn't mean it's a good stock.
  • Never panic. Wealthy investors are in it for the long haul, Rosenthal noted.

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Given the rise of many global stock markets this year and last, it probably won't surprise you to learn that a lot of people are getting quite rich.
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Wednesday, 19 November 2014 02:23 PM
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