Wealth

And The Rich Get Richer

December 26, 2017 By Twila VanLeer

All over the world, one economic fact remains the same. The most rich people in every country continue to get richer and the poor share less of the wealth. Recent global statistics show that the wealthiest 1 percent of the population saw twice as much growth as those in the bottom half.

The middle class, which exists primarily in North America and Europe, has seen the most slippage over the past 40 years, according to the World Inequality Report 2018. While globalization of some industries has significantly raised incomes for hundreds of millions of people, particularly in China and India, that has been accomplished at the expense of manufacturing and other middle-income workers in the developed world.

The report is prepared by an international team of notable economists. In past reports, they have chronicled the increasing gap between the poor and the wealthy in the United States. The top 1 percent on the wealth scale held about 10 percent of the country’s wealth, the 1980 report showed. By 2016, that figure had risen to 20 percent. In Europe for the same time frames, the top 1 percent had gained less, showing just a 12 percent income share.

The researchers attributed the growing gap in the United States to less progressive tax policies. European countries tended to favor more support for education, which in turn enhanced earning power for the middle and lower classes in those countries.

The tax legislation recently passed in the United States will be most damaging to the country’s middle and low-income classes, most economists agree.

Bezos Surpasses $100 Billion in Wealth

December 8, 2017 By Twila VanLeer

Jeff Bezos Surpasses 100 Billion — The surge in Amazon transactions that put Bezos in the $100 billion-plus spot shot the company’s stock up 60 percent, to a record $1,213.4 per share.

Jeff Bezos, founder of Amazon and Amazon’s largest shareholder captured the title of Richest Man in the World. When Bezos reached the $100 Billion in wealth, the moment was noted by Forbes Real-Time Billionaire Rankings. The exact time when the total ticked up to $100 billion was 1 p.m. Eastern Time on Friday, November 24, 2017. He was able to continue his $100 billion figure for 5 days – through November 28.

His riches are a reflection of his long term devotion to building Amazon into the biggest “Everything Ecommerce Store” on the planet. Even his selection of the name of Amazon – the largest river in the world – reflects his goals and aspirations.

Bill Gates, Bezos’ competition in the race to see who can amass the greatest fortune based on the world’s technology mania, once enjoyed a few hours in the $100 billionaire’s spotlight. His personal wealth reached that pinnacle in 1999, but it was very short-lived. Gates today lists his personal wealth at $89 billion-plus. That doesn’t include the $35 billion he has donated to his charitable foundation.

The surge in Amazon transactions that put Bezos in the $100 billion-plus spot shot the company’s stock up 60 percent, to a record $1,213.4 per share. Amazon experienced a similar phenomenon in July, when a surge added $10 billion to the bottom line in one day.

Bezos, now 53, has capitalized on his successful wedding of technology and retail sales. He created an ecommerce phenomenon that seems to have no end. It is due to his unique genius that this holiday season is expected to end with record-breaking online purchasing.

Secrets Of Some Millionaires

November 12, 2017 By Twila VanLeer

Millionaire Secrets — According to financial guru Dave Ramsey, more than 80 percent of America’s millionaires are ordinary people who have accumulated their wealth in one generation.

Everyone knows that when you have a million dollars, give or take a few, that you live high. Right?

Wrong. In some instances, people with a lot of money continue to live modestly. For instance, in 1958, Warren Buffet, whose net worth today is pegged in excess of $75 million, bought a home in a quiet Omaha neighborhood for $31,500. He still lives there, although its value now is more than $800,000. That’s still pretty tony, but not what you’d expect for one of the richest men in the world.

Actually, according to financial guru Dave Ramsey, more than 80 percent of America’s millionaires are ordinary people who have accumulated their wealth in one generation. Their stories are told in a book by Thomas Stanley, “The Millionaire Next Door.”

Among the lessons Stanley draws from his study of the ultra-rich:

They read. On average, they read at least one non-fiction book a month. Quoting late-President Harry S Truman, “Not all readers are leaders, but all leaders are readers.” A constant desire to learn is a hallmark of the successful. They spend more time in books, particularly biographies and leadership how-tos than with the latest reality show. When they have free time, they use it wisely.

They understand the principle of delayed gratification. Many of those with money have spent a lifetime of sacrificing immediate gratification for long-term gain. They aren’t afraid to own a used car, live in a modest neighborhood and wear inexpensive clothing. They don’t waste time and resources in the elusive race with “the Joneses.” They tend to save for the things that they want, including education, a down payment for a home, retirement.

The popular concept of “debt as a tool” evades them. They avoid debt and prefer to save for what they want. Car payments, student loans and same-as-cash financing are things they avoid. They end up with more of their own cash to do with what they want.

Budgets are important to them. Ending up with a million or more dollars doesn’t just happen to the majority of the wealthy. They plan and they budget to reach their goals. On a monthly (or more frequent) basis, they assess where they are visa vie their money. Even those with plenty of money to spend, such as Ramsey, track it down to the penny.

They share. The majority of those with money to spare share it with those less fortunate. They tithe at their churches, contribute to charities, give to more needy persons in their circles of family and friends. They plan ahead to look after loved ones through sufficient inheritances, instead of spending it all on too-much house, $500-per-pair jeans and other unnecessary items.

You may never have to deal with money on the level of a millionaire, but the same principles can work for you.

Who’s The Richest Person On Earth?

November 9, 2017 By Twila VanLeer

World's Richest — Bezos moved from second place on the wealth rankings to first.

Jeff Bezos Hits Top Billing Of Richest Man On Earth.

On Friday, October 27, Amazon.com Inc. shares took an upward surge , lifting his net worth by $7.8 billion to top out at $91.8 billion as of 10 a.m. in New York. A 10 percent uptick in shares bought current share costs to $1,007.59. By October 31, shares are selling at $1,104.16.

Bezos moved from second place on the wealth rankings to first. He was behind Bill Gates, Microsoft Corp. co-founder, on July 27 of this year, even though he enjoyed a short time at the top of heap before Amazon shares dipped, leaving Gates the winner at the end of the day.

Thursday, Gates ended the day with a net worth of $88 billion, according to Bloomberg’s index, which tracks the world’s 500 richest people. Gates, 61, has topped the list since 2013.

On Friday, when Bezos appeared headed for top billing on the list, others also saw their wealth grow. Alphabet Inc.’s Sergey Brin and Larry Page added $2 billion in the first 30 minutes of trading, as did Microsoft’s Steve Ballmer. Mark Zuckerberg of Facebook Inc. added $600,000 to his total.

Bezos, 53, has increased his wealth by $18.1 billion this year, while Gates’ net worth rose by $5.6 billion. Gates donated $4.6 billion of Microsoft stock to the Bill & Melinda Gates Foundation in August.

Analysts, looking at his public charity say Gates would be worth $150 billion if he had not donated almost 700 million Microsoft shares and cash and other assets to an amount of $2.9 billion since 1996.