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June 02, 2011

Levels of Affluence and Wealth in America income levels and net worth

A major predictor of wealth is one's earning a high income before the age of 34. Households earning between $100,000 and $199,999, identified as the "Emerging" tier, have a far greater chance of eventually crossing the golden threshold of $200,000 than those who achieve household income of $100,000 later in life, identified above as "Aspiring."

Net Worth

Millionaire households worldwide represented just 0.9 percent of all households but owned 39 percent of global wealth, up from 37 percent in 2009. The number of millionaire households increased by 12.2 percent in 2010 to about 12.5 million.





The United States had by far the most millionaire households (5.2 million), followed by Japan, China, the United Kingdom, and Germany.

The Boston Consulting Group (BCG) published figures on the countries with the highest number of “ultra-high-net-worth” (UHNW) households, defined as those with more than $100 million in Assets Under Management (AuM). The United States had the largest number of these super-wealthy households (2,692), while Saudi Arabia had the highest concentration of UHNW households, measured per 100,000 households, at 18, followed by Switzerland (10), Hong Kong (9), Kuwait (8), and Austria (8). China experienced the fastest growth in the number of super-wealthy households, which jumped by more than 30 percent to 393.

Global wealth continued a solid recovery in 2010, increasing by 8.0 percent, or $9 trillion, to a record of $121.8 trillion. That level was about $20 trillion above where it stood just two years prior during the depths of the financial crisis, according to a new study by The Boston Consulting Group (BCG).
BCG projects global wealth to grow at a compound annual growth rate (CAGR) of almost 6% to reach $162 trillion by 2015.

* millionaires are 0.9% of households (12.5 million households) in the world and have 39% of the wealth
* households with over $5 million assets under management are 0.1% (1.4 million households) of households and have 22% of the wealth

* Emerging markets have the fastest wealth growth (5-18% growth rates instead of 2-8% in mature markets)

* Offshore wealth was $7.8 trillion
- Switzerland $2.1 trillion
- UK, Channel Islands, Dublin $1.9 trillion
- HK and Singapore $0.9 trillion
- Caribbean and Panama $0.9 trillion
- USA $0.7 trillion
- Luxembourg $0.6 trillion
- Other $0.7 trillion

Each of the regions tends to use the offshore location that is closest to them. ie Asians use HK and Singapore and Europeans use Switzerland, etc...

The wealthy are getting less conservative with their portfolios.
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