Love isn’t safer on the wealthy side…

Posted on May 16, 2012 by

A recent study carried out by the Hamilton Project has suggested that marriage last longer among the rich. However, the percentage of married men earning top-ten incomes has dropped from 95% in 1970 to 83% in 2012. High divorce rates have hit the rich too and probably harder than most of us can imagine.

Divorce procedures that are not amicable can lead to chaotic and long disputes.  For example, the former “highest paid woman in Britain “  Elena Ambrosiadou is finally expecting her divorce to be finalised after years of legal disputes and accusations of espionage with husband Dr Martin Coward.

The wealthy also endure highly expensive divorces settlements and fees: among the top five most expensive celebrity divorce settlements of all times, appear Rupert Murdoch and Anna Murdoch case. After 32 years of marriage, Mrs Murdoch received a sum amounting to GBP 1.6bn from her ex-husband’s fortune as part of the divorce settlement, whereas Junita Jordan got GBP 103m in 2006 after splitting up with former husband and basketball star Michael Jordan.

image source: sellyour-housefast.com

To avoid the nosy media sneaking for a scandal, the rich can luckily afford to pay arbitration procedures which allow them to resolve the dispute quicker and more discreetly than going in front of a judge. Amicable divorces make jumping the growing Court queues possible and an increasing number of wealthy couples are turning towards this convenient method.

Some legal firms offer divorce packages, created to help their clients save as many as their assets as possible or battling in British rather than international courts. According to Lord Justice Thorpe, extremely generous settlements have been granted to the wives of wealthy men in the last years in England and foreign nationals not living in the country have tried to make the most of the system. The example of Russian tycoon Ilva Golubovich and his former wife Elena clearly illustrates this new phenomenon:  Mrs Golubovich who was has been attempting to secure a British divorce in the hope of gaining a more generous settlement from her ex-husband. Additionally, a Nigerian woman managed to increase her settlement to almost 10 times her original settlement, after bringing her case to the Supreme Court last year.

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Sunday Times rich list 2012

Posted on April 27, 2012 by

The eagerly anticipated Sunday Times rich list 2012 will be out next Sunday, So far we’ve had a few bite sized commentaries and rumours of who’s topping the list this year. Here’s a quick snapshot of the list by industry:

Music

Adele is expected to top the list of young British musicians with a fortune reaching £20million. Other British female singers such as Cheryl Cole, Leona Lewis and Katie Melua with a fortune of £12m each, will be raking high as well, while Jessie J, the newcomer, will also be named with earnings estimated around £5 million.

Cinema

Daniel Radcliffe heads the list of young actors aged 30 and under with a fortune worth £54 million. Robert Pattinson added £8 million to his fortune and is now worth £40 million. However Kiera Knightley who registered no increase in wealth keeps her status of second-highest paid actress in Hollywood with earnings of £30 million.

Modelling

The Victoria’s Secret lingerie model Rosie Huntington-Whiteley joins the Rich List with a fortune valued at £5 million and Belfast-born granddaughter of Charlie Chaplin and Chanel’s effigy is worth £28 million, she also owns a 30% stake in a Hollywood production company.

To read more, click here

Picture credit: westfieldstylenotes.com

Picture credit: 100india.com

Picture source: flavourmag.co.uk

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Profile of a Self-made Millionaire

Posted on April 17, 2012 by

Nowadays, wealth is mostly ruled by entrepreneurs and risk takers: the number of self-made millionaires is steadily increasing whilst inherited family fortunes are on the verge of extinction. The  Global Wealth and Family Ties report shows that the number of self-made billionaires has increased by 39.1 % since 2010, while the number of billionaires who inherited their wealth increased by just 26 % in the same period.

Additionally, the number of self-made millionaires is expected to grow even more in the coming years in Britain as the political system implemented in the UK promotes entrepreneurial system and culture.

If self-made millionaires represent the future of HNWIs, it is worth exploring their habits in more detail:

One interesting characteristic of those individuals is that their value system is rather different to family-inherited fortune holders. Self-made millionaires uphold a strong work ethic and believe in meritocracy, usually expecting their children to follow a similar path in their careers. One example of that is the Australian mining billionaire Gina Rinehart who recently fought in court against her own children. Mrs Rinehart refused to pass over the business to her offspring, arguing that they “weren’t fit to manage their fortune and unsuitable to manage the fund and that it would be in their best interests to force them to go to work”.

This case clearly illustrates how self-made millionaires fiercely defend the importance of hard work and highlight the fact that most of them are described as workaholics.

image source: simplefinanciallifestyle.com

In a similar manner, those HNWIs assert that the key to their success was not based on luck but rather on the merit of taking risks to grab a well-spotted opportunity.

Their daring nature in building up a fortune means they take risky decisions which include, among others, developing a niche market, creating a partnership with other entrepreneurs or upgrading an old business.

So what’s next for self-made millionaires?

Often, they seek to conquer new horizons and many go into politics. Those who turn into politics do it by either funding campaigns or even putting themselves as election candidates like Mr Leung Chun-ying did, a Chinese property consultant who won the Hong Kong leadership election last month.

However, they are more likely to keep a low profile and give generous amounts of money to charities like the program “The Secret Millionaire” broadcasted by Channel 4 suggests.

                                                                   

By Alexandra Gomolka

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The New millionaires’ car spree

Posted on April 2, 2012 by

The growing number of Asian and African new millionaires are driving the luxury car market into a less traditional route.

IHS Automotive forecasts a dramatic raise in Ferrari, Aston Martin, Lamborghini, Bentley and Rolls Royce models sold by 2020 in India. Similarly, Bentley is experiencing growing sales in India this year, becoming its second most important Asian market after China, according to Amy Arora (Brand Director at distributor Exclusive Motors Pvt). The car giant consequently plans to open dealerships in Hyderabad and Chennai next year.

The latest trends for the luxury cars market are being shaped by the style and demands of these new millionaires. Luxury car makers are reacting to this trend by adapting their selling strategies: One way is by tailoring their services and products to the needs of new clients whilst making the buying process more enjoyable than ever:

Bentley offers the possibility to the Indian jet-set to visit its factory located in Crewe (north-west England) where they watch their cars being put together. Potential buyers are able to add tailored features to their cars such as hand-stitched upholstery. For instance, a Delhi businessman asked for his car’s paintwork to be the same shade as his wife’s favourite nail polish.

Porsche is also developing a similar strategy in Nigeria where it recently opened a dealership targeting the mini-elite of the country where Porsches, Lamborghinis and Ferraris are in high demand.

image source: transparencyng.com

The challenge for the luxury car makers wanting to open to the African market lies in adapting to difficult terrain as roads are hardly practicable. Porsche rose to the challenge and released its 4×4 Cayenne which is by far, the most popular model imported into Africa.

by Alexandra Gomolka


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Keeping the wealth flowing

Posted on March 23, 2012 by

image source: radikal.ru

The latest rich lists released have announced that the millionaire population is still growing! The Sunday Independent’s Ireland’s Rich List 2012 and the Spectrem Group in the US, both pointed out that HNWIs have seen an increase in their wealth over the last year despite the tensed economic climate. Additionally, the total amount held by the wealthiest worldwide has seen an increase, and in the US, the number of millionaires also grew by 2%, creating 200,000 new HNWIs. Those trends are expected to keep up in the UK as the total wealth of British HNWIs is forecast to grow by 16% to reach USD 3 trillion by 2015 whereas the number of HNWIs will increase by 15% to reach just over 774,000 individuals in 2015 according to WealthInsight.

The population benefiting from this increase in wealth is mainly made up of individuals engaged in business (namely managers, corporate executives, entrepreneur and business owner), sport, television and music activities.

Many already established millionaires have seen their wealth increased considerably since last year. Lord Ballyedmond (a pharmaceutical business owner), saw an increase of up to £50m in his wealth, rounding up his fortune to a £386m and making him the 24th richest man in Ireland.  Other prosperous investors include the duke of Westminter, who experienced an increase of £250m in wealth, bringing his personal fortune up to £7bn.

To read more click here

by Alexandra Gomolka

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The Great green era

Posted on March 1, 2012 by

The growing instability in oil markets plus the concern for the environment are at the forefront of today’s global issues. As a result, alternative sources of energy are in high demand, increasing investment in this area. The wealthy have already started tapping into opportunities to invest in environmental markets.  According to India Reports, nearly 10% of HNWIs and 12% of ultra HNWIs invest in alternative energy sources.

UHNWIs get together by setting “green” common funds and venture capital firms to help start-ups developing their promising projects. For example, the American millionaire Bob Epstein did when he set up E2 (Environmental Entrepreneurs), designed to bring business people who fight for environmental awareness together. Another example is Bill Gates who has been actively involved in green technology; he collaborates with Silicon Valley investor John Doerr, former national security adviser General Jim Jones and General Electric CEO Jeffrey Immelt to increase federal funding for cleantech R&D via the AEIC(American Energy Innovation Council).

source: prweb.com

Investors have a wide variety of alternative energy sources to invest in, including solar, hydroelectric, geothermal and ocean energy or bio-energy. Financier Jacob Rothschild and The Prince of Wales and his family have put their faith on biogas technology as they invested, alongside Sainsbury’s plc, £65 million in Tamar Energy Limited this month. The company produces energy from organic waste matter. On the other hand, some wealthy investors like Texas oil tycoon T. Boone Pickens (who invested $10 billion to build the world’s biggest wind farm in 2008), believe that wind energy is a wiser solution. The Kirk Kristiansen family who owns Lego via Kirkbi A/S, apparently shares this view since it invested last Friday $534 million for a 32 percent stake in DONG Energy’s wind farm in Germany.

HNWIs also do their bit to protect the planet by buying environmentally friendly cars. Dean Devlin, movie producer, thinks it is “chic” to drive a hybrid car and considers it a fashion statement. The run for prestige explains why some high earning celebrities such as George Clooney and Google co-founder Larry Page are rushing to get a Tesla. They might as well soon drive the e6, an electric car produced by BYD Co Ltd, a Chinese carmaker backed by the billionaire Warren Buffet.  In response to the vigorous excitement towards green high-technology, carmakers will introduce next month at the Geneva motor show prototypes with eco-friendly features such as Mitsubishi’s i-MiEV, Opel’s Ampera and Nisan’s Leaf.

Other celebrities such as Orlando Bloom and Cate Blanchett, are promoting sustainable energy by building green houses. They convert their homes into clean properties using a series of innovative processes like geothermal heating, solar panels, rainwater irrigation and air-source heat pumps (to heat the pools).

Polysolar, a cleantech start-up based in Cambridge, offers a fantastic example of how this technology is used in its soon to be launched photovoltaic house.

source: es-pv.co.uk

by Alexandra Gomolka

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Fine Wine Market Outlook 2012

Posted on February 15, 2012 by

wealthmonitor and Wine Yields have published their first report, Fine Wine Market Outlook 2012 today.

This report is the result of a survey of the global fine wine trade, which includes insights by broad section of the market and their opinions on the issues confronting the wine market in the year ahead.

Fine Wine Market Outlook 2012 will undoubtedly be a valuable resource for market participants and will assist wine collectors to make informed buying decisions, whether for investment or pleasure.

You can access the Fine Wine Market Outlook 2012 here. The report is also available in Chinese.

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