Worldwide Success

In the very popular article How Many Millionaires are There in the World? we shared with you not only the number of millionaires in the world but also other relevant information about where they are located, how they made their millions, and other interesting statistics that helps you compare your own situation to those of the richest people in the world.  In this article we are happy to report an update to the data provided in that article.

According to the recently released 2008 World Wealth Report from Merrill Lynch and Cap Gemini the number of millionaires in the world has surpassed the 10 million mark.  In 2007 there were 10.1 million individuals worldwide that held at least US$1 million in financial assets, an increase of 6% over 2006.   Those with more than US$30 million grew even faster, achieving an impressive 8.8% growth rate.

The biggest regional increase in high net worth population gains occurred in emerging market, especially those in the Middle East and Latin America.  However, North America continues to be the region with the largest number of millionaires in the world, accounting for a total of 3.3 million people.  At the country level, India, China and Brazil achieved the highest population growth of High Net Worth Individuals, or HNWIs for short.

Here is the most recent break-down of the number of millionaires in different regions of the world:

• North America – 3.3 million
• Europe – 3.1 million
• Asia-Pacific – 2.8 million
• Latin America – 0.4 million
• Middle East – 0.4 million
• Africa – 0.1 million

It is forecasted that the total wealth of millionaires will grow at an annual rate of 7.7% per year, reaching a total of US$59.1 trillion by 2012.  It is estimated that the Middle East and Latin America will continue to lead the world in terms or millionaire wealth growth, achieving double digit growth rates in average.

Given the recent downward trend in economic conditions across the globe, HNWIs have decided to revise their portfolios to more conservative asset allocations, with fixed-income securities and cash /deposits making up 44% of the assets of the richest people in the world.  They have also decreased their holdings in North America and reduced their investments in Real Estate significantly.

Despite the recent economic struggles, the demand for luxury items continues to be high.  The rich are still spending a significant portion of their wealth on what is called “investments of passion”, which includes things such as art collections, luxury autos, yachts, sport teams, memorabilia and art collections for example. 

The rich keep getting richer, but they also keep on having a good time spending on items that most people can only dream of.  If you are not already one of the 10 million lucky people to have amassed more than US$1 million in financial assets, keep coming back to this site for ongoing quality information that will help you achieve financial success.

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