Feb 182016
 

Expensive Diamond Sells for Record Price

In 2014 Hong Kong real estate mogul Joseph Lau bought his daughter, Zoe, a rare 10 carat 💍 blue diamond for $32.6 million! But when his other daughter, Josephine, found out she understandably became jealous and asked him for an expensive diamond too. He couldn’t help but feel guilty and obliged to buy her something special as well. But Zoe’s diamond is one of a kind. So he planned to buy Josephine an even bigger and more expensive diamond. 😯

In late 2015 at a Sotheby’s auction, Mr. Lau was the top bidder on an insanely rare 12 carat “blue moon” diamond. He paid in Swiss francs equivalent to US $48.4 million, which set a new record for the world’s most expensive diamond ever sold! And he bought it for his little princess. Maybe it’s just me but I think somebody is trying a little too hard to win the world’s greatest dad award. 😛

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Some people are not convinced that spoiling his daughter with a fancy vivid blue diamond ring is the best parenting move he could have made, especially considering that Josephine is only 7 years old. 😀 But next to sound judgment, diamonds are the rarest things in the world, at least according to De Beers. 😛 Since Mr. Lau has an estimated net worth of $10 billion, I can’t blame him for wanting to splurge on his family once in awhile.

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Nov 262015
 

Discreet Success

What I appreciate the most about investing is the option to be inconspicuous about it. 😎 If someone buys a detached house in an affluent neighborhood like Lawrence Park for $5 million, then people will know he’s rich. There is no way to hide his wealth from his close friends or his employer. If he drives to work in a comfortable Aston Martin One-77 then his coworkers will find out about his affluence. But when it comes to his financial holdings, nobody has to find out what, or how much he has. 🙂 This usage of stealth wealth is how most millionaires are able to blend into society.

 

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Keeping our wealth a secret allows us to enjoy work, travel, play, and financial security without attracting unwanted attention to ourselves. We can’t hide our success if we’re famous, but we can hide our financial position if we’re rich. 😉 Driving an older model vehicle is an excellent way to disguise wealth. It allows us to spend like poor people while we continue to grow our income and wealth like rich people without any distractions.  Continue reading »

Oct 162015
 

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The annual world’s wealth report by Credit Suisse financial group was recently released. For the first time in history, the top 1% of the world’s richest now owns 50% of all the wealth. And I bet they’re working hard to get the rest, lol. 😀 Here are some of the highlights I found interesting from the report. Wealth is defined as the value of net assets including property and stock market investments. Everything is in $US unless otherwise specified.

At a Glance

  • In total, global households have $250 trillion (an amount equal to 100 times JP Morgan’s assets.)
  • There are 34 million millionaires in the world. They make up 0.7% of the world’s adult population.
  • Wealth inequality was actually falling before the financial crisis but has increased every year since 2008. Median wealth has stagnated in the U.S. while the country created 903 new millionaires between 2014 and 2015.
  • 71% of the world’s population (3.4 billion adults) have less than $10,000.
  • Global wealth could reach $345 trillion by mid-2020, 38% above its mid-2015 level.

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The Upper Class

  • There are 123,800 people in the world with a net worth exceeding $50 million. Of these, 44,900 are worth at least $100 million, and 4,500 have assets above $500 million. 😯
  • There are 984,000 millionaires in Canada.
  • Canada has a disproportionate number of millionaires as Canadians represent 0.6% of the global population but make up 3% of the world’s 1% wealthiest.
  • Having $68,800 would secure you a place in the top 10% of the world’s wealthiest.
  • The top 1% have at least $759,900.
  • Millionaires from just about every country saw their collective wealth decline last year, but the main factor was the rise of the U.S. dollar, which made wealth denominated in other currencies look comparatively smaller.

Here’s the full press release from Credit Suisse.

This year’s report focuses on the middle classes, as defined by personal wealth rather than profession. It says 14% of adults worldwide are middle class, with $50,000 to $500,000 of assets. From 2008 onwards, wealth growth has not allowed the middle-class to keep pace with population growth. Furthermore, the distribution of wealth gains has shifted in favor of those at higher wealth levels. So if you want to benefit from this trend, or at least make your financial life easier, simply get your net worth above the middle-class range. 🙂

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Random Useless Fact:

Mosquito bite? Press a hot spoon onto the spot. The heat will destroy the protein that caused the reaction and the itching will stop.

Apr 072015
 

I recently read an article called “Perfection Anxiety” from an old copy of Vanity Fair magazine. In it 25 year old Petra Ecclestone, the daughter of Formula One mogul Bernie, and her recently married husband, bought an $85,000,000 mansion in Los Angeles. Wow, and I thought Vancouver real estate was expensive. 😛 Before moving in to their new home they also spent $19,000,000 on their wedding. 😯 To put that into context the average wedding in the United States only costs about $25,000. But of course most weddings don’t serve bottles of $6,000 Chateau Petrus, nor does the bride wear a $130,000 Vera Wang dress.

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If that wasn’t enough excitement for the couple they later bought a 17th century self-portrait by Van Dyck for $20,000,000. 😕

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Feb 242015
 

In self defence class we learn to fight… so that we won’t have to. Personal finance is very much the same way. 🙂 The best thing that money can give us, is the freedom to not worry about money anymore. Sometimes we can become so focused on our finances that we can easily forget about actually living a life. To me financial wealth is not simply about having money. It’s more about having better options in life. A lack of money is a great disadvantage. Poor people have a greater affinity to stay poor. Their lack of resources keeps them from having access to better opportunities and choices that many middle class and rich people take for granted. Having a limited amount of choices can lead to further unsatisfactory circumstances, so it becomes a self-reinforcing cycle.

We spend a lot of time planning our budgets, building up our savings, and looking for profitable investments, but in the end we should realize that doing all this work is not about the money. It’s about the freedom and the awesome choices we’ll be rewarded with! 😀 We do not want to become obsessed about “money,” in and of itself. We don’t want to turn into those kinds of people who think that the best thing about wealth is that it allows them to buy material things. 😐 If that’s what they really want to believe then I wish them good luck in life. 😛

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There’s a popular story that demonstrates the silly nature of materialism in the world today:

A successful businessman bought a brand new BMW M6 convertable. He parked it right in front of his office so that he could show it off to his fellow co-workers. As he got out his vehicle a passing garbage truck lost control and side-swiped his car, ripping off the door on the driver’s side. The police quickly arrived and the businessman began ranting hysterically that his new BMW was now ruined.  😡 After 10 minutes of profuse shouting and cursing, the businessman was finally able to calm down. The police officer then said to him, “You are so focused on your car that you don’t notice anything else. I can’t believe how materialistic you are.” The businessman looked confused. “What do you mean?” he asked. The police officer explained; “Haven’t you noticed that your left arm is missing? It must have been torn off in the accident.” The businessman’s face went white. “OH NO!” he screamed. “My Rolex!!”

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