It’s not just Wall Street bankers, hedge fund traders and corporate raiders who will join the one percent. Nope. By now you may have heard that the new look of affluence in America is kind of… girly. The 7th Fidelity Millionaire Outlook found that today’s emerging high rollers are 66 percent female and 25 percent non-white.
The Fidelity Outlook identified 6 wealth-building traits that multi-millionaires have in common: Their starting point—a mere $250,000 in assets.
1 Time Horizon: On average, emerging affluent investors are just 40 years of age with 27 years left before they reach the normal retirement age of 67. Only one percent of the emerging affluent is retired.
2. Career: Many of the emerging affluent have pursued similar professions to today’s millionaires, including information technology, finance and accounting. While they might be at lower-level positions than millionaires, they have a number of years in front of them to move up the ladder.
3. Income: At $125,000, the median annual household income for the emerging affluent is 2.5X the median U.S. household income8 and is nearing the income of today’s millionaires ($200,000 for those still employed).
4. Self-Made Status: Approximately eight in 10 emerging affluent investors have earned or increased their assets on their own, a trait they share with millionaires and deca-millionaires.
5. Long-Term Focus: The emerging affluent share millionaires’ long-term focus, with three in four of both groups focused on the long-term growth of their assets, and three in 10 focused on supporting the lifestyle they want in retirement.
6. Investing Style: Similar to deca-millionaires, the emerging affluent display a willingness to invest aggressively to help maximize returns, as well as a willingness to set aside a significant portion of their portfolio for riskier investments that promise a bigger payoff. The emerging affluent and deca-millionaires were also most likely to describe themselves as “self-directed” investors, seeking hands-on involvement with their investments.
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The leading candidates for the Democratic presidential nomination have all proposed increasing taxes on corporations, including raising income tax rates to levels ranging from 25% to 35%, up from the current 21% imposed by the Republican tax cuts in 2017. With Bernie Sanders leading the way at $3.9 trillion, here’s how much revenue the higher proposed corporate taxes, along with additional proposed surtaxes and reduced tax breaks, would generate over a decade, according to calculations by the right-leaning Tax Foundation, highlighted Wednesday by Bloomberg News.
The federal government’s total non-defense discretionary spending – which covers everything from education and national parks to veterans’ medical care and low-income housing assistance – equals 3.2% of GDP in 2020, near historic lows going back to 1962, according to an analysis this week from the Center on Budget and Policy Priorities.
The Committee for a Responsible Federal Budget estimated this week that President Trump has now signed legislation that will add a total of $4.7 trillion to the national debt between 2017 and 2029. Tax cuts and spending increases account for similar portions of the projected increase, though if the individual tax cuts in the 2017 Republican overhaul are extended beyond their current expiration date at the end of 2025, they would add another $1 trillion in debt through 2029.
Are interest rates destined to move higher, increasing the cost of private and public debt? While many experts believe that higher rates are all but inevitable, historian Paul Schmelzing argues that today’s low-interest environment is consistent with a long-term trend stretching back 600 years.
The chart “shows a clear historical downtrend, with rates falling about 1% every 60 years to near zero today,” says Bloomberg’s Aaron Brown. “Rates do tend to revert to a mean, but that mean seems to be declining.”
Lawmakers are considering three separate bills that are intended to reduce the cost of prescription drugs. Here’s an overview of the proposals, from a series of charts produced by the Kaiser Family Foundation this week. An interesting detail highlighted in another chart: 88% of voters – including 92% of Democrats and 85% of Republicans – want to give the government the power to negotiate prices with drug companies.