Tag: Wealth

Studying at a certain university can help a person’s career fate. Those who graduate from elite campuses are seen as having more potential in the world of work. Not only because of their name, several universities are known to produce quality graduates, especially since they have performed well from the start until they are accepted there. It is not surprising that these students will become rich people. Which universities have made the most billionaires?

Some universities have a reputation for being known to produce businessmen, politicians and other well-known individuals. Every year, Wealth-X research firm issues a list of campuses that produce the most successful alumni. This study took data from billionaires who were known to have graduated from university. They then estimated how many millionaires had graduated from there.

Populer Universities

Courtesy : Bing

Based on research released by Wealth-X in 2019, nine out of 10 universities that make the most billionaires are located in the United States. Meanwhile, another university comes from England, namely Cambridge. Most of the successful graduates who are registered have a net worth of at least $ 30 million or around Rp.446 billion which is referred to as UHNW (Ultra High Net Worth Individual).

Several university names are familiar and often appear on the lists of the world’s best universities, such as Harvard and Stanford. There is also a university that dropped in the previous year’s list, namely Yale.

Most people probably think that all the graduates of the prestigious universities on this list have gotten rich because of their parents. However, based on research, 79% of UHNW from Harvard are billionaires who made their fortune from their own efforts. Meanwhile, 15% of billionaires achieve success because of a mixture of their own efforts and legacy. Meanwhile, only 6% became rich just because their parents gave them.

Here are 10 universities that generate the most billionaires:

1. Harvard University

2. Stanford University

3. University of Pennsylvania

4. Columbia University

5. New York University

6. Massachusetts Institute of Technology

7. University of Cambridge

8. Northwestern University

9. University of Southern California

10. University of Chicago

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In 2020 there are many changes that occur including in terms of business and economy. This change also affects the income of the richest people in the world including in China. If before we knew Jack ma the founder of Alibaba group as the richest person from China, now Jack Ma’s position has been replaced by a child born in 1980.

Citing Forbes, Colin Huang, replaced Alibaba Group founder Jack Ma, from the list of the second richest people in China. Colin has a fortune of US $ 45.4 billion. Colin Huang is the founder of Pinduoduo e-commerce. His wealth increased after the company he led recorded a 6 percent rise in shares to an all-time high of US $ 87.58 in Nasdaq trading in June.

History

Pinduoduo has been in business since 2015, and in a short time became one of the largest online retail businesses in China. Its market capitalization reached US $ 104 billion. Besides Huang, a number of investors also enjoyed the share increase experienced by Pinduoduo, such as Tencent, Sequoia China, and Gaorong Capital (officially known as Banyan Capital); Board members include Sequoia China founding partner Neil Shen. Pinduoduo’s stock performance also helped Gaorong’s co-founders, Zhang Zhen and Gao Xiang, to make the Midas List this year.

Huang was a former Google employee. Before spending three years as an engineer at Google, Huang was previously an intern at Microsoft. “These three years have been very valuable to me. Google gives me far more than my contribution, “he said.

Become the Richest in the Country

With a fortune of US $ 45.4 billion, Huang is currently only losing to Tencent Holdings CEO, Ma Huateng. Ma’s wealth is estimated at around US $ 51.5 billion. While Jack Ma’s wealth is estimated to be close to Colin Huang, which is around US $ 43.9 billion.

An increase in Pinduoduo’s shares of more than 300 percent last year led Huang, a former Google engineer, to narrow the gap between his wealth and former Google boss Larry Page who were estimated to have assets of US $ 64.3 billion and Sergey Brin of US $ 62.6 billion.

Based on Forbes billionaire real time data, Amazon founder Jeff Bezos is still at the top of the richest people in the world, with a fortune of US $ 160.4 billion. In second place is Microsofot’s founder, Bill Gates, who has a wealth of US $ 108.7 billion. In third place is Bernard Arnault, CEO of luxury fashion goods producer, Louis Vuitton Moet Hennessy with a fortune of US $ 105.7 billion.

Meanwhile, Facebook boss Mark Zuckerberg trailed the three conglomerates in fourth place with a fortune of US $ 81.3 billion.

Will the position of the world’s richest people change over the next few months? Can be. This pandemic changed everything including the list of people with the most income in the world.

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Forbes magazine officially revoked the name of Hollywood star Kylie Jenner from the list of young world billionaires ever given in March 2019. Forbes accused the 22-year-old woman of not providing true financial information about her cosmetics business and falsifying her billionaire status. Reported on the Forbes.com page, Forbes said that Kylie Jenner’s cosmetics business, Kylie Cosmetics, was not as successful as reported, and even had a deficit. Forbes said that Kylie and her family intentionally raised the business and success of the youngest Kardashian-Jenner family.

Kyle Gave Fake Document

“Although we cannot prove that the document is fake (although it is most likely true), it is clear that Kylie has lied,” Forbes wrote. Even sister of supermodel Kendall Jenner was said to have raised numbers and tax data when researched last year. Forbes said Kylie’s Cosmetics business income and Kylie’s assets had not reached US $ 1 billion. Kylie Cosmetics’s income is also not as big as her claim. Kylie Cosmetics is predicted to get US $ 360 million (Rp. 5.3 trillion) last year. However, based on a presentation from Coty Inc., a company that bought Kylie Cosmetics shares, the company only pocketed US $ 125 million or around Rp1.8 trillion. As much as US $ 100 million or equivalent to Rp1.5 trillion was obtained from skincare products released by Kylie in May 2019.

Thus, Forbes concluded that Kylie Jenner’s total wealth actually reached US $ 900 million. This makes Kylie not worthy of being called a young billionaire because he does not yet have assets of at least US $ 1 billion.

Kylie Cosmetics’s income is also not as big as her claim. Kylie Cosmetics is predicted to get US $ 360 million (Rp. 5.3 trillion) last year. However, based on a presentation from Coty Inc., a company that bought Kylie Cosmetics shares, the company only pocketed US $ 125 million or around Rp1.8 trillion. As much as US $ 100 million or equivalent to Rp1.5 trillion was obtained from skincare products released by Kylie in May 2019.

Kyle Does Not Reach 1 Billion

Thus, Forbes concluded that Kylie Jenner’s total wealth actually reached US $ 900 million. This makes Kylie not worthy of being called a young billionaire because he does not yet have assets of at least US $ 1 billion.

Kylie Cosmetics’s income is also not as big as her claim. Kylie Cosmetics is predicted to get US $ 360 million (Rp. 5.3 trillion) last year. However, based on a presentation from Coty Inc., a company that bought Kylie Cosmetics shares, the company only pocketed US $ 125 million or around Rp1.8 trillion. As much as US $ 100 million or equivalent to Rp1.5 trillion was obtained from skincare products released by Kylie in May 2019.

Forbes claimed to have asked for clarification from Kylie Jenner, but had not yet received an answer. Responding to Forbes’ decision, through his Twitter account, Kylie Jenner said the article released by Forbes was also inaccurate based on unproven assumptions. Quoted from the Beautinesia site, Princess of Chris Jenner was also reluctant to respond and justify how much wealth he currently has. “I never asked for any titles or intended to lie at that time,” said the mother of Stormi Webster.

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Honestly, almost all over people in the world today face difficult situation. Moody’s rating agency said, the financial impact of the corona virus has been felt in several major corporate sectors. “Sectors that depend on trade and free movement of the most exposed people, such as airline passengers, shipping, and lodging and holidays include shipping lanes and restaurants,” said Benjamin Nelson, Moodys Vice President and Senior Credit Officer who wrote this report.

Many advisors, particularly younger advisors working in solo practices, can be more susceptible to stress, given the isolation of their practices to begin with. Many are staying sane by simply turning to other advisors to commiserate. Lisa Kirchenbauer, founder and president of Omega Wealth Management in Arlington said she found balance in exercise and walks outdoors, as well as meditation. “Everything is so fluid right now, every day is something new and changing,” said Kirchenbauer. So, there are some steps you need to do to help your financial health still sane during this pandemic.

Revisit your wealth plan with a professional

Couttesy : tqn.com

If their office is closed, you can make an appointment with them to meeting online. To help you reduce your anxiety about your plan you need to seek their advice. Hold firmly your asset allocation. See that you are always well-connected to your assets and can access the digital tools available from your financial institution to help you navigate your portfolio from home.

Consider A Roth IRA Conversion

Your financial adviser can help you determine if this strategy makes sense for you. The market stress and the potential drop of personal income will for 2020 makes a Roth conversion a top consideration for many people according to MarketWatch website.

Stop Using You Credit Card

Courtesy : sguru.net

In a pandemic that makes things change and are uncertain, you must stop using your credit card for non-essential expenses. Control the use of your credit card. And start thinking about investing more. Control monthly expenses and notice on your bill that unproductive spending must be stopped now.

Don’t Be Panic Buying

You do not live alone. You still have a family, friends, even all the people in your city have household needs too. Even your needs may vary from family to family, you must also consider the needs of others. Piling up too much food can result in your food becoming redundant. The government has given information that the food stock is sufficient. So you don’t need to pile up food that can later become wasteful and thrown away. You want to save money but instead, be a waste.

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Americans strive to do “better than the Jones’” by earning enough money (and accumulating debt) to buy fancy McMansions, nice cars, and family vacations. But the never-ending pursuit of the trappings of wealth can get in the way of the truly important things in life such as relationships, job satisfaction, and extracurricular pursuits. Debt accumulation is often the end result of aspiring to acquire “stuff and things” so we can impress others and make ourselves feel like we have succeeded. Acquiring material possessions rarely leads to happiness. In addition to increased debt, it impairs our ability to provide adequate savings for retirement. In fact, research shows that the average American has very little saved for retirement.

According to research from the 2014 Retirement Confidence Survey (RCS) conducted by the Employee Benefit Research Institute, 58 percent of workers and 44 percent of retirees report having a problem with their level of debt, and a sizable percentage of workers have virtually no money in savings and investments. Among the workers that responded to the RCS, 60 percent report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000. Only roughly 22% had savings over $100,000.

Mr. Anthony’s article offers some advice to live debt free and counterbalance the materialistic slant of today’s world.

First, he mentions a tip his father taught him– that he should always try to live on only half of what he earns each year.

Most Americans will need to save far more than they anticipated for retirement. Whereas a 10% savings rate was appropriate in the past when workers had robust pensions and could count on receiving Social Security, a retirement savings rate of at least 15% is now more appropriate. If you include additional annual saving for an auto reserve, future college expenses for your kids, and six months of cash for an emergency reserve, a number closer to at least 25% might be more practical. His father’s point was that you should try to live way below your means so that there would be a cushion of safety as well as turbo charged savings for future goals like retirement. If we live a frugal lifestyle, we won’t get too addicted to a cushy lifestyle.

Second, it is essential that we relax about what our “position” is in life and not fall prey to the belief that “we are what we own.”

The key concept here is that true happiness is “wanting what you have.” As we get older and start to reflect on our lives, we realize that health, relationships, and experiences are far more valuable than all of the physical things that were once so imperative for us to acquire. In fact, we have learned by experience, that just because we bought that truck or went on our dream vacation, it did not fundamentally change our lives. Learning to love exactly where you are in your life at any one point in time is a concept that will result in great joy, peace, and satisfaction. Mr. Anthony writes, “life does not consist of the abundance of things, but of the abundance of enjoying where we are and who we are with.”

Finally, Mr. Anthony suggests that we should not place an unrealistic burden on ourselves regarding where we “should be” at certain ages or stages of our lives.

You should live the life that YOU want, not the life you think your parents, friends, or colleagues think you should live. You have the power to write the script of your life.

Our life goals, and especially our retirement goals are very important, as they help define our lifestyle and determine how much money we need to achieve our heartfelt desires. If we can live by the principles that Mitch Anthony outlines, we can have control over our money as opposed to our money and debt having control over us.

If you want to read more about goal setting for retirement, I suggest that you read Mitch Anthony’s book The New Retirementality. It will inspire you to be more intentional about planning for that next phase of your life. The book also provides valuable exercises to help you determine how you will spend your time and money to live a purposeful retirement. The Millionaire Next Door is also a great read to inspire you to downscale your life. The book, written by Tom Stanley and William Danko, presents research on the habits and lifestyle of wealthy Americans and how they accumulated millions by not flaunting their wealth, but instead by living a practical life.

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Many studies show that Americans are woefully behind on their savings for retirement.  In fact, according to the 2018 EBRI annual survey, roughly 60% of all workers surveyed have less than $25,000 saved for retirement. But things might not be as bad as they seem. 

A recent study by risk management firm Towers Watson attempts to debunk the magnitude of the retirement crisis in America.   The authors suggest that most retirees will be better off than predicted, since they don’t require as high a replacement ratio of preretirement income, as what is commonly recommended. They argue that the often quoted rule of thumb that retirees will need to fund 85% of pre-retirement income annually, may be too high.  In reality, retirement cash flow needs change over time.  As retirees age they move through the “go-go” years, the “slow-go” years, and then the “no-go” years.  We spend far less than we anticipate at the end of our lifecycle, due to diminished mobility and health.

In addition, the savings cycle is variable.  People will forgo savings early in their career, but ramp savings up substantially in the latter stage of their working years to make up for lost time.

I was recently asked to comment on the Towers Watson study by reporter Mandi Woodruff for an article in Yahoo Finance.  My instant reaction to this story was that individual investors have to take these rule-of-thumb numbers with a grain of salt.  The data on annual retirement savings is flawed (as the Towers Watson report points out).  For example, it does not include the value of pensions, real estate, or closely held businesses.  It also does not include the value of transfer payments and other governmental programs, so the resulting data set is incomplete. We cannot draw conclusions based solely on this data.

Gauging retirement readiness should be done on an individual basis.  More importantly, as a financial planner who specializes in retirement planning, I know that simple tools or rules of thumb are crude at best.  They are like applying blunt machetes in a surgical procedure.  They are not going to result in the precision that is needed for each individual’s situation.

The best way to approach retirement planning is to work from the bottom up and determine the clients’ specific personal cash needs and requirements over the balance of their lives.  Quick on line calculators and rules such as multiple of final income or spending as a ratio of income can’t possibly apply to everyone.   These repeatedly quoted prescriptions for success insinuate that the planning process is static and deterministic, when in fact, it is a dynamic process based on many fluid assumptions and variables.  The ever changing-nature of a client’s personal life, tax laws, financial markets, etc. require that the plan is periodically updated.

Instead of a rules based approach, each client should be evaluated in a highly customized and holistic way.  That is the essence of true financial planning.  It’s not just about investments anymore. It is about how a person will fulfill their dreams and what money can do for them during their lifetime.  It is about career planning, lifestyle planning, legacy planning, tax planning, and cash flow planning.  More importantly, it also encompasses the “x factor” of a client’s behavior towards and attitudes about money in his or her life.

While many in the field of finance are touting the trend and threat of robo-advisors, holistic retirement planning lends itself far more to the human touch. Since many Baby Boomers are entering the distribution phase of their financial life, customized financial planning is becoming more important than ever.

Proper financial planning starts with an in-depth conversation with a client to better understand what makes him or her tick.  It requires listening, attentiveness, and is done best when there is an ongoing relationship with that client.  It is not a one and done event.

A detailed retirement plan projection often requires the client answering the following questions:

  • What are you needs, wants, and bucket list items in retirement?
  • When would you like to retire and how will you phase into the new lifestyle? Will you still want to engage in part time work once you quit your job?
  • How will you spend your free time?  What might a typical day look like?
  • How often will you be travelling and where will you go?
  • How often will you be connecting with friends and family?
  • Do you want to leave money to heirs or a favorite charity? How will gifts to kids and your charities change upon retirement?
  • How healthy are you and do you have a history of longevity in your family?
  • How much are you willing to save in order to achieve an early retirement?  And conversely, how much are you willing to cut spending before and after retirement, in order to retire early?
  • What are your plans for your home? Will you relocate?  Will you keep your second home?  Will you need any major improvements done? Will you downsize?
  • How often will you buy cars and other vehicles?  How much will you spend on each vehicle?

These questions not only help to determine annual and overall cash flow needs, they also can help assess behavior around money as well as risk tolerance.

I often use the metaphor of a jigsaw puzzle.  Each client walks into my office and figuratively drops the pieces of their life puzzle on my table.  Each puzzle picture is uniquely different.  It is up to the client and me to put these pieces together to develop a vibrant picture of their future retirement years.

While I think these rules of thumb to assess retirement readiness are not adequate, there are some principles that are highly correlative to retirement readiness.

I suggest that if clients are serious about wealth-building they should save at least 15% of their salary throughout your career and that should limit wealth in personal real estate to no more than 25% of your total assets.

These principles encourage strong savings mentality, keep debt to a minimum, and reduce exposure to a low return asset class (personal real estate).  Living below one’s means is a successful way to build wealth and a good lifelong habit.  A strong savings rate helps protect against longevity and poor investment returns, as well as having to heavily tilt retirement savings to the back end of a career–which makes the investor more susceptible to market corrections in the years just prior to retirement.

Finally, the personalized, holistic approach to retirement planning addresses the significant challenges that savers have with regard to retirement planning.  Having a planner that fully understands these risks and properly accounts for them will help the client feel more confident about his or her prospects for retirement.  For example, if the planner assumes conservative investment return assumptions, accounts for higher healthcare cost inflation, adjusts Social Security benefits to account for some reform, assumes a relatively long life span, and the clients still have a high chance of success, they will feel more confident about their upcoming retirement.  The peace of mind that is achieved through the financial planning process is something that a rule of thumb or quick on line calculator won’t necessarily provide.

While the savings statistics for Americans suggest significant shortfalls in retirement, working with a planner to determine how to maximize financial opportunities like Social Security and pension maximization, tax reduction strategies, and maximization of their human capital, is essential to preparing for a successful retirement.  Ideally, the process is started as early as possible to improve a retiree’s chance of success and ensure that their unique vision of  retirement is realized.

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There is another question we need to consider: is owning a business the best way to make money?

This was definitely a belief that I held in my early twenties – that if you wanted to be wealthy you had to own a successful business. I’m not sure if I was influenced by my family, friends or things I read, but I always wanted to start a business of my own.

Now I know I was wrong about this. Wealth can be created by anyone who consistently spends less than they earn and who invests their savings on a regular basis. In fact, the more I look at business failure statistics, the more I wonder about the wisdom of starting any business, despite certainly understanding why people want to.

Once again, we get back to risk and return. Starting or buying a business is risky, but if the business goes well the rewards are high. The business in which I am a shareholder was started by myself and four partners in 1983. We put in $20,000 each and rented a very small, serviced office. Today, we employ well over 280 staff in our offices and South African joint venture.

Funnily enough, the “academic” theory about starting a business is correct. you do need a vision of what you want your business to be and a well-formulated business plan. You must control you cash flow and, in the good years, you must leave money in the company to build up its strength. I feel fortunate that we took the risk in 1983 to quit our quite well-paid jobs, because today business ownership makes me proud, gives me an unbeatable sense of job security and the benefits of controlling my own destiny.

How quickly, though, we forget the reality of starting a business from scratch. In my case, this meant earning next to nothing for five years, working outrageous hours – my partners and I used to laugh about our 35 hours of work. Thirty-five hours on Monday, Tuesday and part of Wednesday; another 35 hours on the other part of Wednesday, Thursday and Friday; and just to top things up, working on Saturday as well. Sometimes we didn’t work on Sunday, holidays were a few days off at Christmas and, as for sick leave, well, we just couldn’t afford to get sick!

If you do want to create significant wealth, building a successful business is certainly one way to get there. Look at people in the “500 most wealthy” lists. Some inherit the money, but most create it by building a business.

Few small businesses will ever grow into a News Corporation and not too many will ever be worth a lot of money, but running a business has benefits beyond the purely financial side. This really struck me when I was sitting on beach. While my kids and some friend were paddling around on a hired aqua bike, I started chatting to the owner of the aqua bike business who was originally from my town. He explained that the business was no world beater but it was pretty good and, living on a beautiful lagoon, next to a beach, hiring boats to generally pleasant tourists was somewhat better than working in a factory in industrial suburbs. He has a point. For him, his business provides lifestyle and a reasonable cash flow. He may have earned more working in his town, but tinkering with boats on Avoca lagoon seems much better.

For every success story like this, though, I know of dozens of failures. Buying or setting up a business for lifestyle is a dangerous thing – you may act on emotion, not logic. If you do plan to start up or buy a business for whatever reason, please be careful.

Look, there’s no denying owning a business sounds good and assuming it works, it is. However, as I found, you’ll probably end up working an awful lot harder for a lot longer than in the job you leave and, for the short term at least, not earning as much.

You’ll also miss out on the benefits that full-time employees are entitled to and often take for granted, such as: employer-funded super; worker’s compensation cover; paid sick leave; four weeks’ paid annual leave; holiday loading; long service leave; and maternity (or paternity) leave. You may also have to forgo other goodies company car; an expense account; paid telephone expenses; low holiday expenses; annual bonuses; share options; and the support of a union or industry association. In other words, when you work for yourself there’s no safety net – you’re on your own. Don’t let me scare the wits out of you, however. While self-employment is not all beer and skittles, the great thing about it is the freedom it gives you to run your own race, which I believe outweighs the negatives.

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