How Does Your Net Worth Compare?
Building wealth is one of the primary tenets of financial planning, but do you ever wonder how your net worth compares to the rest of the world? We can talk about financial security all day, but what does that really mean in the grand scheme of things?
Bloomberg Businessweek sought to answer this question, and came up with an interesting scale to describe net worth. The results are fascinating, and say a lot about how economics is working in today’s world.
Your “net worth number” is determined by your assets, and the quality of life you can theoretically afford, using your overall worth to the power of 10. So a millionaire is 10 to the sixth power, or a 6. Someone with only 100 dollars is 10 to the second power, or a 2, and so on. People with a negative net worth (owing more than they have) comprise the brackets assigned a negative number.
The largest bracket (3) contains 1.7 billion people, who have a net worth of approximately 1,000 dollars. The highest income bracket is also the smallest, and contains just two people – Jeff Bezos and Bill Gates. Even Elon Musk is only assigned a 10.
This information is interesting, but of course we shouldn’t get too hung up on comparing ourselves to others. The real question is whether you feel comfortable with your position, or would you prefer to build more assets? Particularly with regard to retirement planning, you might wish to evaluate whether your income is dependable for the future and falls in line with your goals.
Give us a call about that, and we’ll be happy to help.
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In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution.
Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies.
Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.”
Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.