Standard Chartered Bank has come out with an interesting “Wealth Expectancy Report for 2019”. They have coined some new interesting terminology. You need to understand some of those terms….(copied from the Report, obviously)
- Wealth Expectancy – the max wealth a person is expected to achieve in his life time. It is assumed to happen at the age of 60.
I liked the concept – however for people whose consumption is less then their dividend income, it will happen at a much later age. For my father the net worth at 89 was more than 100x his net-worth at 60. This was obviously because the appreciation in the equity and RE portfolio was far far greater than the draw downs. In fact there was no draw down – there was actually addition.
- Consumable Wealth Expectancy – is Wealth expectancy without including the Residential House.
3.Monthly Consumable Wealth Expectancy – Consumable wealth Expectancy including pension pots converted into monthly figures..
- Wealth aspiration – the wealth a person aspires to have to be able to live comfortably in Retirement.
- Wealth Gap – the gap between Wealth aspiration and the Consumable wealth Expectancy!
They have then classified the Investors into Hnwi, Affluent, and Emerging Affluent.
They assumed that the average life expectancy of this group is 83+ – hello IFA those who assume that the life expectancy is 72….see here. I would assume you will have to change to 85.
There is a lot of gap in the RETIREMENT REQUIREMENT – and a big part of this is expected to be met from RE. That also means a ton of RE will come up for sale – and the demand for equity/ retirement investments, experts in the field…..hello IFA are you reading this post?
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