Question for the wealthiest 10%... how?

sabretoothtigger

Duke and Queen are mostly rich through land ownership. wages wont make a person that rich, it comes from ownership, in StevieJ's examples they are all creator owners of business
I dont begrudge the Queen, she is mostly a tenant from my view

savings from their own earnings is negligible.

In cash definitely because cash is nothing solid but tax vouchers. All the big money comes from mixing in the top tier of capital like banks do, that we never see. Someone who owns especially a bigger business has their hands dipped in that source, via company funds they are accessing it and benefitting

gadgetmind wrote: »

I'd rather donate my money to a charity than give it to HMRC to fritter away. In fact, I'd rather make a big heap of cash and burn it!

Burn a million quid, seen that done
http://en.wikipedia.org/wiki/K_Foundation_Burn_a_Million_Quid

gadgetmind

sabretoothtigger wrote: »

Burn a million quid, seen that done

Easy come, easy go, and at least they had fun and laid down some lasting memories.

talexuser

Burn a million quid...an extremely selfish and egotistical thing to do. If they didn't want the money make sure some good came of it by helping people less fortunate in some concrete way, hospitals, orphanages, third world projects etc.

grey_gym_sock

burning £1m is a pretty amazing thing to do, considering it was apparently most of their money at the time. if a billionaire burnt £1m, it would just be showing off.

i know there are more obviously worthwhile things they could have done with it. but they were not wasting resources (except a little paper) by burning money. spending lots of money on a pointless project is wasting resources. money is power to decide how resources are assigned. they gave up some of that power. if you think the rest of society assigns resources poorly, then fix that - don't expect random millionaires to fix it.

grey_gym_sock

sabretoothtigger wrote: »

I dont begrudge the Queen, she is mostly a tenant from my view

i think it's pretty clear what property is personal to her, and what belongs to the state. for 1 thing, after the abdication, george VI had to buy some property (e.g. balmoral) from the duke of windsor, which clarifies that that property is personal.

racing_blue

More from the office for national statistics 2008/10 survey published in December 2012:

Median household wealth in the UK was £232,000. The 10th centile falls at £13,000 and the 90th centile falls at £967,000. The 99th centile falls at £2,807,000

Within the UK’s wealthiest 10%, wealth is distrubuted as follows:
median pension: £742,000
medan property wealth: £340,000
median net financial wealth: £123,200
median net physcial wealth: £68,000

(this is actually the midpoint of the top 10%, ie. the 95th centile)

I think I recall hearing that there are something like 20 million households in England and Wales?

Those previous postings about creating, rather than/ as well as earning wealth are very interesting: building a house or a business, buying assets at a cheap price and selling them for more. Thanks for those insights.

The fact that pension wealth makes up nearly 60% of the pie at the 95th centile makes me think that high earners can get into the top 10% too?

caveman38

racing_blue wrote: »

More from the office for national statistics 2008/10 survey published in December 2012:

Median household wealth in the UK was £232,000. The 10th centile falls at £13,000 and the 90th centile falls at £967,000. The 99th centile falls at £2,807,000

Within the UK’s wealthiest 10%, wealth is distrubuted as follows:
median pension: £742,000
medan property wealth: £340,000
median net financial wealth: £123,200
median net physcial wealth: £68,000

(this is actually the midpoint of the top 10%, ie. the 95th centile)

I think I recall hearing that there are something like 20 million households in England and Wales?

Those previous postings about creating, rather than/ as well as earning wealth are very interesting: building a house or a business, buying assets at a cheap price and selling them for more. Thanks for those insights.

The fact that pension wealth makes up nearly 60% of the pie at the 95th centile makes me think that high earners can get into the top 10% too?

Which is pretty much what I was getting at in Post 3.
The value of future earnings or pensions (pension pot) is really of no relevance to how rich one would feel. You cannot lay your hands on any of that future money unlike assets like a house or savings.
Therefor in my opinion that study was a waste of time.

Devon_Sailor

racing_blue wrote: »

Point taken, however I'm pretty confindent that the households with the top 10% of wealth can choose a standard of life that I would find comfortable! It's a financial goal of sorts. I think perhaps a less fickle goal than "an income of £30k PA in retirement" and perhaps more measurable than "a detached house somewhere leafy near Waitrose"? Just musing, not really thought this right through

Not necessarily. Take the vast majority of owner/occupier farmers. Potentially massive paper wealth sticking them right up there in your articles wealth bracket (a big old farmhouse plus 100 acres would set you well into the £1million plus zone, depending on where you lived). However most of them are facing almost crushing cash poverty as they struggle to keep businesses going.

Just underlines the point that all this is "relative"!

Regards,

D_S

atush

StevieJ wrote: »

I should imagine the equivalent value of a Final Salary pension based on a reasonable wage would make a fair dint into that £1 million.

I suppose, but it has no actual value in that these days you can't really transfer them as you can't find an IFA who will sign off. And it dies with you if you have no spouse or dependants. Whereas a personal or DC pension can be left to other relatives (although again not wholly).

but yes, they say even mid salary FS workers will reach the lifetime cap now.

racing_blue

Devon_Sailor wrote: »

Not necessarily. Take the vast majority of owner/occupier farmers. Potentially massive paper wealth sticking them right up there in your articles wealth bracket (a big old farmhouse plus 100 acres would set you well into the £1million plus zone, depending on where you lived). However most of them are facing almost crushing cash poverty as they struggle to keep businesses going.

Just underlines the point that all this is "relative"!

Regards,

D_S

Thanks for that insight DS.

I don't know much about the economics of farming, but why would a farmer need to live in poverty if they had net assets of >£1m? Couldn't they borrow against the assets to help cashflow?