Share this content

Didn't find your answer?

Possibly something to aim for if not.

https://www.bloomberg.com/news/articles/2021-02-24/richest-1-in-the-world-how-much-net-worth-it-takes-to-join-ranks-of-wealthiest?srnd=premium-europe

I expect for Londoners it's nearer $3m to qualify and that after the 2021 Budget it will be harder still (unless perhaps they make it so hard that all the rich people b4gger off offshore to Singapore etc. so as to reduce the average).

Replies (13)

Please login or register to join the discussion.

paddle steamer
By DJKL
24th Feb 2021 12:50

What does one measure, all assets including pensions or merely free assets excluding one's PPR?

If the target for the UK is $1.8m that equates to £1.27m, whilst not there yet I suspect we might eventually make the cut if a married couple count as one person.

If one includes a capital value for one's state pension entitlement already earned that alone for us is a few hundred thousand pounds at current actuarial rates, most final salary pensions have pretty chunky capital values so we can add on my wife's local authority scheme, her AVCs, my SIPP and my other money purchase pension. Then you have the odd whole of life and ISAs , bank balances and a not that expensive house and the holiday house in Sweden -the target is really not that high, certainly the older one gets the easier it is to hit the target.

Thanks (0)
Replying to DJKL:
avatar
By Justin Bryant
24th Feb 2021 12:59

I thought you were Aweb's answer to George Soros based on your recent share tips comments!

Thanks (0)
Replying to Justin Bryant:
paddle steamer
By DJKL
24th Feb 2021 13:14

I do okay.

I would do even better if I had not had children, the university years drained a fair amount of funds (The rents in St Andrews were criminal) and I now have the wedding costs looming (If we ever get to wedding number one , the reception for which having been moved to October 2021 from October 2020).

I do tend to buy most shares via my SIPP or to a lesser extent my ISA, in fact just this morning trimmed some Shell to buy more Scottish Mortgage (Either the recent dip is overdone or I have caught a falling knife)

The other thing is, does one include trusts in which one might or might not have an interest?

Edit- also, what about likely future inheritances?

Thanks (0)
Replying to DJKL:
avatar
By Justin Bryant
24th Feb 2021 13:23

Well, like George Soros I shorted £ v. $ this morning as the pound's really shot up this past week to around $1.42 and I'm already in the money (one has to hedge out the risk of falling outside the 1% club too you know!).

Thanks (0)
Replying to Justin Bryant:
paddle steamer
By DJKL
24th Feb 2021 13:49

I never short (or buy CFDs). I do not like anything where markets impact my decisions re timing (I have seen lots of people burned trading on T20s/margin). I buy with what I have and with no leverage, the only leveraged purchase ever was our PPR.

Thanks (0)
Replying to DJKL:
avatar
By Justin Bryant
24th Feb 2021 14:07

As long as you have a stop loss you are usually fine I find although there was once an overnight event that caused Swiss Franc to plummet or soar (I forget which) in which case only a guaranteed stop loss could have saved you there.

Thanks (0)
Replying to Justin Bryant:
avatar
By Justin Bryant
24th Feb 2021 14:47

Meanwhile, I note bonds are now plummeting per my inflation risk predication here last August: https://www.ft.com/content/9fbafac5-02a9-43dd-ab61-b2ca05cb5264

Thanks (0)
Replying to Justin Bryant:
paddle steamer
By DJKL
24th Feb 2021 15:14

Never been that keen on bonds, my father at one time held tranches of local authority bonds (better yield than gilts) as a core part of his retirement income, and I can see the certainty of income attraction (at least until redemption when replacing the income may be challenging) , maybe it was all the redemption yield calcs I did at university that soured my view, but I am strongly in favour of only three asset classes when I direct what is bought though I am sure some of the bundled things we have, like whole of life policies, hold bonds and other instruments.

My three are property (our houses) shares (our investments) cash (the buffer) and other than that it is just some odd jewelry, cars that devalue, a few paintings, my vinyl and some interesting older model railway locos from Hornby and Wrenn which when I bought them I somehow persuaded my wife were really investments (I suspect she knows they are not and is just humouring me)

Thanks (0)
By ireallyshouldknowthisbut
24th Feb 2021 13:42

Household basis yes, but only as my house + BTL is worth more than £1.27 and we are on net debt of about nil (I have a mortgage but equal sums invested)

But I would then have to live in my car so its highly theoretical, and I imagine the mrs would then divorce me and want half of it.

Thanks (0)
Replying to ireallyshouldknowthisbut:
paddle steamer
By DJKL
24th Feb 2021 13:44

Yes, it is all well and good having a valuable house but one cannot cash it in and continue to live in it. (Well, equity release if one thinks it is a good idea-I do not)

Over the years one would get clients who poured everything into bigger and bigger houses with no other "savings", you might point this out to them, this was fine if they are later prepared to downsize, but reality is a fair few reach the fateful retirement date and cannot bring themselves to sell the family home, they end up asset rich income poor.

We always tried to ensure that we had more in our pensions and savings than equity in our house, in part because I worked in property so did not want all my eggs in one basket (market goes pop/employment goes pop/wealth in property goes pop)

Thanks (0)
By Duggimon
25th Feb 2021 13:57

I have an issue with the headline which asks whether you are wealthy enough to be in the 1% globally and then gives a bunch of local figures. If you're in the top 1% globally then you're in the top 1% globally, regardless of whether you're in London, Basingstoke or Omsk.

Thanks (0)
Replying to Duggimon:
avatar
By Hugo Fair
27th Feb 2021 12:20

But the size of the pond does affect the self-perception of the fish that bother to measure themselves in this way!

Thanks (0)
Slim
By Slim
26th Feb 2021 22:15

The top 0.1% is where it’s at.

Thanks (0)
Share this content