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Nearly 70% Millionaires Don't Feel Wealthy, Survey Finds
Even Millionaires Say They Don’t ...
Investopedia
21 m
12
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Even millionaires say they don’t feel wealthy in this economy.
According to a recent survey by Northwestern Mutual, only about one-third (32%) of high-net-worth individuals (HNWI) in America—or those with $1 million or more in investable assets—consider themselves wealthy.
Advisors working with HNWI clients say that lifestyle creep—which happens when your discretionary spending increases because you make more money—may be why some millionaires don’t feel wealthy.
“The problem is that, as [clients] build their income, their expenses go up too,” said Eric Roberge, CFP and founder of Beyond Your Hammock, who typically works with clients in their 40s with a net worth of between $3 and $5 million.
“Whether they’re making $50,000 when they start or more than $500,000 as a family, it still feels tight—to save, afford the house they’re living in, and pay for kids to have childcare and go to college. The expenses are still there. They’re just bigger," he added.
And the math looks different depending on location and the cost of living. In areas with a higher cost of living, larger salaries may not go very far.
For example, many Silicon Valley workers may have higher net worths because their income includes equity compensation, but face higher housing costs than similar workers in other parts of the country, according to Anna Sergunina, President and CEO of MainStreet Financial Planning. Housing can be expensive in some East Coast cities too and can drain an objectively large paycheck.
“I might have a client making $300,000 as a household, which is still great money. But in the Boston area, it gets eaten up pretty good by the high cost of living,” Roberge said.
Also, many clients who may have just made it over the million-dollar net worth threshold, may not realize it or actively talk about it, said Sergunina.
And that's probably also because their aggregate net worth, including their retirement accounts, brokerage accounts, and even real estate assets, like a house, may cross the $1 million milestone “on paper,” Sergunina added.
Clients with assets less than a million are typically more worried about running out of money in retirement, according to Greg Giardino, vice president and financial advisor at Wealth Enhancement Group. Those closer to a million but above that threshold still worry, but those concerns diminish as net worth increases.
In the survey, wealthier respondents reported higher rates of retirement readiness and knowledge about their finances: 87% of HNWI said they felt financially prepared for retirement compared to 54% of other respondents.
Roberge said that taxes on retirement savings are a big topic among his HNWI clients, especially since many receive compensation in the form of bonuses and equity, which represents ownership in the firm for a company's employees.
“The higher net worth clients are concerned about taxes. It's tough to pay the right amount of taxes automatically through your paycheck every year and not get hit with this major tax bill,” Roberge said.
Minimizing their taxes during retirement was the number one concern of the millionaires Northwestern Mutual surveyed, although more than six in ten millionaires had a plan for tax minimization. Action plans include strategic withdrawals from traditional and Roth IRAs, making charitable donations to take advantage of the tax deduction, and using health savings accounts (HSA).
Giardino has had many millionaire clients, who are closer to retirement, ask questions about backdoor Roth IRAs (which offer special tax benefits) and charitable donations.
With Roth IRAs, earnings grow tax-free over time. And while Roth IRAs have income limits, backdoor Roth IRAs don’t, enabling people to bypass the income limits by converting their traditional IRA into a Roth IRA.
“Many millionaires that I work with learn that it’s not about what you earn, but it’s about what you keep when you withdraw from your retirement accounts,” Giardino said.
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Instablog9ja
1 h
9
Nigeria recorded a trade surplus of N6.95 trillion in the second quarter of 2024, according to a report released by the National Bureau of Statistics (NBS) on Wednesday which shows a decline in Nigeria’s import.
Nairametrics reports that this reflects the country’s strong export performance amidst a slight decline in overall merchandise trade. This surplus marks a 6.60% increase from the previous quarter, which recorded a surplus of N6.52 trillion.
Nigeria’s total merchandise trade in Q2 2024 stood at N31.89 trillion, representing a 3.76% decline compared to the preceding quarter (Q1 2024) but marking a 150.39% rise from the corresponding period in 2023.
Nigeria’s export sector continues to be the primary driver of its trade surplus. In Q2 2024, total exports stood at N19.42 trillion, accounting for 60.89% of the country’s total trade. This represents a 1.31% increase from N19.17 trillion in the first quarter and a 201.76% surge from N6.44 trillion recorded in Q2 2023. The dominance of crude oil exports remains a key factor in this performance, contributing N14.56 trillion, or 74.98% of total exports.
Non-crude oil exports, valued at N4.86 trillion, made up 25.02% of the total export value, with non-oil products contributing N1.94 trillion. The strong export performance, particularly in crude oil, ensured that Nigeria maintained a favourable trade balance.
In Q2 2024, Nigeria’s top export destinations were dominated by European and American countries. Spain emerged as the largest export partner, receiving goods valued at N2.01 trillion, accounting for 10.34% of Nigeria’s total exports. The United States followed closely with N1.86 trillion (9.56%), while France imported N1.82 trillion worth of Nigerian goods, representing 9.37% of total exports. Other significant export partners include India (N1.65 trillion or 8.50%) and the Netherlands (N1.38 trillion or 7.10%). Collectively, these top five export partners contributed 44.87% of Nigeria’s total exports during the second quarter of 2024.
While exports surged, imports in Q2 2024 experienced a notable decline. The total value of imports stood at N12.47 trillion, accounting for 39.11% of the country’s merchandise trade. This marked a 10.71% decrease from the N13.97 trillion recorded in Q1 2024 but still showed a 97.93% increase from the N6.30 trillion recorded in Q2 2023.
The reduction in imports further contributed to the significant trade surplus, highlighting Nigeria’s growing export strength relative to its import demand. China maintained its position as Nigeria’s largest supplier of goods, with imports valued at N3.03 trillion, representing 24.29% of Nigeria’s total imports.
Belgium followed, supplying goods worth N1.79 trillion (14.35%), while India contributed N1.06 trillion, accounting for 8.49% of total imports. The United States was the fourth-largest import partner with N917.84 billion (7.36%), and the Netherlands rounded out the top five with N585.30 billion (4.69%) of total imports. These countries were responsible for a significant portion of Nigeria’s imports, mainly supplying mineral fuels, machinery, and transport equipment.
In Q2 2024, the bulk of Nigeria’s trade was conducted via maritime transport. Exports transported by sea accounted for N19.25 trillion, or 99.14% of total exports. Air transport played a minimal role in the export sector, contributing N73.72 billion or 0.38%, while road transport accounted for N30.72 billion or 0.16% of exports. Other transport methods, including pipelines, contributed N63.28 billion or 0.33%.
On the import side, maritime transport also dominated, accounting for N11.84 trillion or 94.94% of total imports. Air transport contributed N531.38 billion (4.66%), while road transport accounted for only N49.97 billion (0.40%) of imports. The heavy reliance on maritime transport highlights the importance of Nigeria’s seaports in facilitating international trade.
Investopedia
1 h
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Amazon (AMZN) said it plans to spend 8 billion pounds ($10.5 billion) to build and operate data centers in the U.K. over the next five years through 2028, in a massive expansion of its cloud and artificial intelligence (AI) infrastructure.
Amazon Web Services (AWS), a key driver of the tech giant's growth, will contribute 14 billion pounds to the country's GDP in that span and support around 14,000 jobs annually, Amazon said.
AWS reported last month that second-quarter revenue jumped 19% year-over-year and analysts have said that gains could continue this year on strong demand for cloud storage and AI.
Amazon isn't alone among the big tech firms ramping up AI-related spending. Goldman Sachs analysts have projected that big tech companies, including Amazon and Microsoft (MSFT), are set to collectively spend over $1 trillion on AI over the next five years to meet burgeoning demand.
Amazon shares were little changed in early trading Wednesday and have gained about 17% since the start of the year.
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Instablog9ja
2 hrs
11
A businessman, identified as Nsikak, has been accused of d3filing his tenant’s one-year-old child.
According to CrossRiverVine, the incident occurred on Tuesday, September 10, 2024, in Betem, Biase LGA, Cross River State. It was reported that the mother of the victim had recently moved into the compound. The child, along with a 7-month-old, was left to play with Nsikak’s 7-year-old son when the tragic incident took place.
After the a§§ault, Nsikak fled to his farm, leaving the child inj¥red. Angr¥ youths in the community confronted him, and he allegedly attempted to bribe them to keep quiet. The offer was rejected, and Nsikak was handed over to the police. The child was immediately taken to the hospital for medical treatment.
Investopedia 2 hrs 15
GameStop (GME) shares plunged in premarket trading on Wednesday after the brick-and-mortar video gamer retailer announced a 20 million share offering and reported a 31% drop in quarterly sales, as consumers continue to pivot from physical discs to digital downloads and game streaming.
The company’s shares, which shot to prominence during a pandemic-era meme stock frenzy, have seen significant price fluctuations this year as influential trader Keith Gill—also known as "Roaring Kitty"—made several cryptic posts about the retailer following a three-year hiatus.
GameStop shares were down 13% at $20.40 about 45 minutes before Wednesday's opening bell.
Below, we’ll take a look at what the technicals are saying on GameStop’s chart and identify key post-earnings price levels that investors will likely be watching.
GameStop shares have oscillated within a symmetrical triangle since meme-driven volatility subsided in early June, with bulls successfully defending the pattern’s lower trendline twice throughout August.
More recently, a three day winning streak up to the triangle’s top trendline came to an abrupt end on Tuesday, indicating uncertainty ahead of the video game retailer’s quarterly results.
Indeed, Wednesday’s projected earnings-driven drop opens the door for a potential breakdown below the pattern.
Upon a breakdown below the symmetrical triangle’s lower trendline, investors should monitor three important price levels.
Firstly, it’s worth watching the $18.50 area, a location on the chart where the shares may encounter support near the 200-day moving average (MA) and several peaks and troughs from September 2023 to August this year.
A failure to hold above this level could see the shares fall to $15.25, where investors may seek entry points near a trendline linking a period of narrow consolidation on the chart between January and March.
Further selling could drive a decline to $13.25, about 43% below Tuesday’s close, an area where the stock would likely attract buying interest near a range of comparable lows on the chart from October to March.
Amid the possibility for a meme-fueled rally in GameStop shares, it’s worth keeping an eye on the $30.50 area, where an army of retail traders who have bought at lower prices may be happy to book profits near the May 13 gap close and a series of similar trading levels in mid June.
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Read more on Investopedia
Instablog9ja
3 hrs
12
A lady has reacted to paternity fra¥d allegations involving footballer Kayode Olanrewaju and his estranged wife.
She said If he is not the biological father of his three children, then he is the problem and he should thank his wife for giving him the opportunity to be a father regardless.
