Many of you may be thinking and asking, “how do I build my net worthiness, which is the same as how much I owe.” You must understand that there are two different things when talking about people’s high net worth. Some people are highly wealthy but are also saddled with liabilities that prevent them from living in luxury. On the other hand, millions of middle-class people also want to build their net worthiness and become affluent, but they face a lot of problems because they don’t have enough savings or credit cards to finance their desires.
How many people in the world are high net worth?
The question “How many people in the world are high net worth?” is the kind of question that comes to everyone’s mind. This is because everybody from an average Joe down to a common housewife or family-run downsized organization needs to know how to build their net worth. Net worth is the total value of all assets minus the total value of all liabilities. When we talk about assets, it simply means that what we have is worth more than what we owe.
There are various ways and options on how to build wealth. If you are one of those people who are still struggling every day to make ends meet, there is nothing wrong with asking yourself, “How many people in the world are in your shoes?” One way to answer this question is by investing in the stock market. Investing in the stock market may sound like it is difficult, but you can learn how to build wealth by learning about the stock market. Once you gain the knowledge and skills to manage stocks, you will build up your net worthiness.
Another way to build up your wealth is through real estate investments. By acquiring property, you can surely increase the value of your home and generate more income. There are also several banks that loan money to people who need financing for their real estate needs. With this, millions of people around the globe own houses, and they surely have a high net worth.
These are just some of the reasons why people ask the question: “How many people in the world are high net worth?” High net worthiness is something that cannot be measured or judged in any way. There are too many variables that are involved in determining the worthiness of a person.
high net worth statistics
The high net worth statistics that we hear about are those of super successful entrepreneurs. These are the sort of millionaires that most people only read about in books and on the news. While it is true that there is a hidden job market for wealthy individuals, one out of every ten millionaires is not living in their dream.
There are also ultra-high net worth clients. These are the sort of clients who have made megabucks by being the chosen one in a raffle or something of the sort. Many wealthy individuals can purchase the right to “buy-in” to something for themselves. It is very similar to stocks, but instead of buying the stock, you are buying the right to buy into whatever they are selling. While some people may scoff at this, it is a fact that some ultra-high net worth clients have made an incredible amount of money. Unfortunately, most of them did not have the foresight to allow their wealth to build to the point where they could afford to live off of it.
While the world of investing may be a very competitive place, there are ultra-high net worth clients that have made an incredible amount of money from relatively little work. The truth of the matter is that if you want to become wealthy quickly, you will have to invest in your future. This does not just mean having a savings account. And it means investing in your future.
Benefit to High Net Worth Individuals
The first benefit to high net worth individuals is the ability to defer paying capital gains tax on inherited property and dividends received from non-registered investment companies. In the United States and several other countries around the world, there is a special rate on capital gains applicable to certain inherited properties, such as real estate. In most cases, this rate is lower than the combined rate on income tax for the year. This benefit is also the first benefit that the individual may receive by selling an inherited asset. If you have no children or dependents at the moment, you may also consider this as an appropriate time to sell your asset.
The second major benefit to high net worth individuals is shelter investments through retirement accounts and other similar financial vehicles. By saving during the early years, you can provide yourself with large tax savings and get a larger sum of money at the beginning of your retirement. This may not seem like much immediately, but the tax savings can be quite substantial throughout a lifetime. At the very least, it may be possible to save enough through tax breaks and other means to supplement a pension or other retirement income that you would have otherwise received.
The third benefit to high net worth individuals is avoiding paying taxes on unrealized capital gains that accrue during the year. Real estate represents the most common example of this kind of asset. By renting out a portion of your home to a tenant who then pays rent, you can avoid paying capital gains tax.