Those in the highest echelon of income earners — the 1 percenters — are speeding past the rest of the population when it comes to rebuilding wealth after the recession of 2007 to 2009.
A study by E. Morris Cox Professor of Economics at Berkeley Emmanuel Saez, “Striking it Richer: The Evolution of Top Incomes in the United States,” shows that in 2009 to 2010, the 1 percenters captured an astounding 93 percent of income growth. The stock market, which has doubled in three years, is responsible for most of the gains of the wealthy since the recession, while the majority of Americans are still suffering from a sluggish housing market and jobs recovery.» Read more
When it comes to passing down an inheritance, most families think of money and tangible assets. But there’s another legacy that’s even more important to the preservation of families –the noneconomic one.
Typically, it’s not until after the financial paperwork, such as wills, trusts and family business agreements, is in place that families begin thinking about how they want their heritage, or identity, to be communicated to subsequent generations. But planning for this type of legacy can and should begin even earlier, giving multiple generations the opportunity to work together on the family story.
“More and more, families are recognizing the importance of family heritage,” says Susan Dsurney, family wealth adviser and CPA at GenSpring Family Offices.» Read more
Think you’ve experienced the pain of investment losses? Everything being relative, the net worth of Carlos Slim, the world’s richest man according to the Bloomberg Billionaires Index, dropped an astounding $478.4 million in a day. As of March 2, his total net worth was $68.5 billion, making his one-day loss much less significant as it» Read more
If you got rid of the outer trappings of wealth, would you gain inner wealth? One woman says yes, and is trying to convince others that backing away from what she calls “a greedy consumer society” provides a better quality of life and personal freedom. Heidemarie Schwermer, a 69-year-old German woman, is putting her money» Read more
Would you say the rich or the poor are more likely to break the law while driving, support unethical behavior at work and even take candy from children? Turns out, it’s the rich, according to a series of seven experiments conducted by researchers and reported in Proceedings of the National Academy of Sciences. Perhaps it’s» Read more
A majority of rich Americans in a new survey support raising the age at which people are eligible for Social Security. Of the 1,000 individuals in the Bank of America survey, 58 percent say they don’t expect to tap into their Social Security benefits until after their normal retirement age of 66 because they plan» Read more
The year has started with a bang as far as stock market investors are concerned. Yesterday, the Dow briefly crossed 13,000 for the first time since May 2008, and many traders are starting to consider whether investors are missing out on a significant rally if they stay on the sidelines, according to CNBC. The Dow,» Read more
The investing world is abuzz over the success of an unassuming 34-year-old college dropout who isn’t big on spreadsheets, market predictions or algorithms. Yet, in the 12 years he’s run his money management business, he’s earned a cumulative 400 percent. A few stock mutual funds have done as well or better than Allan Mecham, but» Read more
President Obama’s proposed 2013 budget is asking a lot of the rich — specifically, $1.4 trillion in new tax burdens. The $3.8 trillion budget proposal includes higher tax rates for couples making at least $250,000 and individuals earning at least $200,000. Dividends for these Americans would be taxed as ordinary income — a whopping increase» Read more
Men in the United Kingdom with the highest net worth live an average of six years longer than those with significantly less money, and that gap has been widening over the past 20 years, according to the results of a survey. The survey was conducted by research firm Longevity Science Advisory Panel in the U.K.,» Read more