Latest news with #wealth
Yahoo
2 hours ago
- Business
- Yahoo
One change that could leave Aussies $830,000 better off at retirement
Most people think building wealth is about how much you save or how smart you are with your investing. But what makes the real difference isn't your income, your investment knowledge, or even your budget — it's how early you start. Consider an example of two people with the same goal of growing their money through investing. One starts investing just a few dollars a day from the age of 20. The other waits until they get to age 40, when their financial position is more settled, they're earning more, and they're able to invest a more 'meaningful' amount of $500 monthly. But when we look at the numbers, you can see that by waiting, the damage is done. Even though the late starter is investing more than triple the amount of money, they end up with less than half the amount of money at the end. This is the power of time — it works silently in the background, and if you ignore it, the cost is huge — even if you're doing everything else right. RELATED Expert's 'crucial' money tactic to retire with $2.9 million Centrelink's 'balancing' move could provide cash boost or expose debt Commonwealth Bank's fresh alert for millions over mass text messages The power of time (and compounding) Going back to our example, we've got two people, Emma and James. Emma starts investing $5 daily from the age of 20, and James is our late starter who invests $500 monthly from the age of 40. Because Emma starts early, her money has more time to grow — and that's where the magic of compounding comes even though she's investing less money overall, her money starts growing sooner. And through compounding, Emma benefits from growth on her growth, which cranks up her investment balance over time. Based on the Australian long-term (30-year) average sharemarket return of 9.8 per cent, Emma's $5 daily investment would grow to be worth more than $1.48 million by the time she's 65. For James, even though he's putting away $500 monthly, or more than triple what Emma is investing, he starts 20 years later. By the time he reaches age 65, his money has grown to just under $650,000. This is a solid result, but is $830,000 less — or less than half of the final amount Emma has from her much smaller investment. For James to 'catch up' to Emma given his delayed start, he'd need to invest around $1,250 monthly — or almost 10 times the daily investment amount Emma is putting in — all because he starts later. The cost of waiting It's not about earning more. It's not about investing huge amounts of money. It's about giving your money time to work for you. When you start early, you don't need to be perfect. You don't need to pick some hot stock that takes off. You just need to get started. Small amounts of money, invested regularly and consistently, are how regular people can build a life-changing amount of money. It isn't 'sexy', and doesn't need to be 'risky' — but it is effective. Waiting even a year to get started with investing can cost you a lot more than you think. Delaying by 12 months might not seem like much, but following our example above, waiting just one year to start your $5 daily investment (starting at age 21 vs 20), your final balance drops by $140,000. But it gets worse. If you delay to age 25, that's over $580,000 you'll miss out on. And if you wait until age 30, you're giving up a whopping $940,000 in investment growth. That's the opportunity cost of inaction — it's not just about not investing now, it's about future options you're missing. The earlier you start, the less effort it takes — and every year you wait, the cost of your inaction grows. This is the hidden danger of inertia. Most people don't realise the real cost of waiting, because it doesn't really feel like you're losing money. But you are, because you're giving up future wealth that only time can create for you. That's why time is your greatest asset. The longer you wait, the more effort it will take to catch up, and for most people that gap simply becomes too much — and they end up settling for an outcome well below where they really want to be. This works for anyone And the best part of all of this is that investing $5 daily is something that's possible for almost anyone. It doesn't require a huge income, lots of time, or heaps of experience in investment markets. Instead of stressing about trying to save hundreds or even thousands of dollars, simply automate a small daily investment and let it grow. Thankfully today, technology is making this easier, with dozens of investment accounts that can help you easily automate a regular investment. Follow this approach, and over time your investment growth will outpace how much money you're putting in — and eventually it will do more of the work than you ever could on your own. Most people spend too much time trying to predict the perfect time to invest, or waiting for their financial situation to get more comfortable so investing is 'easier'. But the real winners are the people that crack on and get started, and focus on being consistent over a longer period of time. The wrap Investing doesn't need to be some big, bold action you take once you have heaps of money. It just has to be consistent, and the sooner you start, the more you'll be rewarded. Don't wait until you make more money, or saving is easier, or even until you're more of an investing expert. You just need to make the decision — $5 a day today, or thousands monthly later trying to catch up. Because when it comes to getting ahead, how soon you start is the single thing that will make the biggest difference. Ben Nash is a finance expert commentator, podcaster, financial adviser and founder of Pivot Wealth. Ben's new book, Virgin Millionaire; the step-by-step guide to your first million and beyond is out now on Amazon | Audiobook. If you want some help with your money and investing, you can book a call with Pivot Wealth here. Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance in retrieving data Sign in to access your portfolio Error in retrieving data
New York Times
5 hours ago
- Politics
- New York Times
How Do I Tell My Rich Friends to Stop Talking About Fleeing the Country?
I have a wealthy friend (not billions, but well over $20 million) who talks almost incessantly about leaving the country because of her and her family's concerns about the current political situation. Nearly every week, it's another 'Check this one out!' — always accompanied by a link to a villa in the south of France or a seaside four-bedroom condo overlooking the coast of Spain. I'm not the sort to let money drive a relationship; I don't defer to wealthy people, and I wouldn't expect deference if the roles were reversed. So how do you navigate things when you're simply tired of hearing the same conversation on wash, rinse, repeat? I can't just say: 'Stop. Your friends with less money don't want to hear it.' That would only create anger. But 'Have you thought about how these comments affect others?' feels condescending. I'm not sure it's appropriate to tell her to stop, or how to do it. — Name Withheld From the Ethicist: One way of being obnoxious is by condescending to people, treating them in a way that implies they're lesser. Another, opposite way is by failing to notice that other people lack the advantages you enjoy. If the first obliquely asserts superiority, the second obliviously betrays self-absorption. Both of them grate. I can imagine other misgivings you might have about these upscale escape fantasies. When the political weather in your country turns threatening, there's much to be said for staying put, if you safely can, and trying to make things better. Given her resources, your friend might wrest herself from the Sotheby's International Realty website and spend more time reviewing political campaigns that could benefit from her backing. It doesn't sound as if she's facing persecution; if anything, she's on the verge of a tax break. So her weekly search for a bolt-hole on the Riviera just seems an attempt to dodge an unpleasant atmosphere. In our 24/7 digital era, though, is there truly more solace in brooding over news alerts from a villa in Cap Ferrat than from a ranch in Montana? You don't have to make it a confrontation. There are plenty of ways to signal the realities she's exasperatingly deaf to. The next time she sends you a link to a coastal villa, you might respond with a listing for a studio apartment in a Communist-era block in Bucharest — ample stair climbing, intermittent hot water and panoramic views of concrete — explaining that it better fits your budget. If she's miffed for a minute, that's the price of honesty. And a small one, surely, compared to that spread in Cap Ferrat. Want all of The Times? Subscribe.
Yahoo
12 hours ago
- Business
- Yahoo
This one big money move sets rich retirees apart
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. What's the secret to a wealthy retirement? It's more than saving or investing earlier — though those help. The real game-changer, the move that separates the financially comfortable from the truly rich retirees, doesn't involve a single trade or real estate deal. It all starts with a plan. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how 'The biggest piece of advice for retirees is to create a financial plan before retiring,' Patrick Marcinko, a certified financial planner, told Nasdaq. 'A good financial plan should provide peace of mind that you are on track for a successful retirement, financially.' Getting retirement right goes way past hoping for the best. It's mapped out, and now we have evidence those plans can help retirees thrive while others are just getting by. How a financial plan drives your retirement Many retirees wonder if they're saving enough or putting their money in the right places. A plan answers those questions with precision, showing you how to optimize your 401(k), IRA, or Health Savings Account (HSA) to take full advantage of tax benefits. It also ensures you're not leaving money on the table when it comes to employer matches or overlooked savings opportunities. Next, it addresses your lifestyle. No two retirements are the same: Whether you envision traveling the world, downsizing to simplify your expenses or picking up part-time work, a financial plan aligns your income with your personal goals. It also prepares you for rising costs in critical areas like health care, which Fidelity estimates will cost the average 65-year-old retiring in 2024 around $165,000 over their lifetime. With medical expenses rivaling inflation — WTW's Global Medical Trends Survey anticipates a 10.2% increase in U.S. medical costs in 2025 — planning ahead can mean the difference between staying afloat and struggling to cover basic needs. To make a rock-solid financial plan, you need an advisor you can trust. Finding a match is easy with — a platform that can connect you with a vetted professional best suited to your income level and portfolio. Just answer a few quick questions about yourself and your finances, then the online platform connects you with a vetted financial advisor in minutes. You can schedule an initial consultation for free and with no obligation to hire. Diversify your portfolio Risk management is another essential piece of the puzzle. A recent outlook from Morgan Stanley found that a diversified investment strategy is more likely to offer better risk-adjusted returns compared to familiar approaches like passive exposure to the S&P 500 Index. A financial advisor can also help you manage the right asset mix for your portfolio based on your risk profile, investing time horizon and financial goals. Diversification acts as a hedge against market downturns, economic uncertainty, future inflation spikes and even your own longevity. If you're feeling shaky about the current state of the stock market, you can spread your risk by investing in commodities. A gold IRA is one option for building up your retirement fund with an inflation-hedging asset. Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA. With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver. If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today. Read more: Rich, young Americans are ditching the stormy stock market — Real estate investing Another investment that has a reputation for potential growth is real estate. It used to be cumbersome, costly and very admin-heavy, but no longer. For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors. With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property. With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. Accredited investors might also consider investing in commercial real estate. For years, direct access to this $22.5 trillion sector has been limited to a select group of elite investors — until now. First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord. With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns. Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties. Fine art investing In times of economic uncertainty, alternative investments can be an appealing way to hedge your investments. One of the most attractive options is investing in fine art. Instead of buying a single painting for millions of dollars, you can now invest in fractional shares of blue-chip art — by renowned artists including Pablo Picasso, Basquiat and Banksy — through Masterworks. Masterworks takes care of all the heavy lifting in art investment — from buying the paintings, to storing them, to selling them opportunistically for you — with no art experience required. All you have to do is select how many shares you want to buy and Masterworks will take care of the rest. As soon as Masterworks sells a piece you invested in, you get a return from the net proceeds. While every artwork performs differently, from their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5%, among assets held for longer than one year. What to read next How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement 5 simple ways to grow rich with US real estate — without the headaches of being a landlord. Start now with as little as $10 This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Car insurance in America now costs a stunning $2,329/year on average — but here's how 2 minutes can save you more than $600 in 2025 Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Telegraph
13 hours ago
- Business
- Telegraph
How Mike Lynch shielded his family fortune from £700m fraud ruling
After winning his freedom last year, Mike Lynch was relaxed about the prospect that he might become personally penniless. The British software tycoon had faced the prospect of decades in prison before he defeated criminal fraud charges in a San Francisco trial, and described winning the case as being granted a 'second life'. The prospect of signing his wealth away to Hewlett-Packard (HP), the tech giant that was pursuing him for billions in the English courts, paled in comparison to ending his life behind bars. But Lynch was breezy about the prospect for another reason: a large portion of the Lynch family fortune was held in his wife Angela Bacares's name, shielding it from any legal repercussions. 'My wife has been very good at investing in the things that I've told her to from a point of view of technology. We've done very well,' Lynch said in an interview after he was acquitted. 'It's not a perilous situation.' Just a few weeks later, Lynch and his daughter Hannah died when the entrepreneur's superyacht, Bayesian, capsized off the coast of Sicily, a tragedy that Bacares herself survived. But the decision for Bacares to hold much of the wealth in her name now looks like a wise move. On Tuesday, a judge ruled that HP was owed almost £740m from Lynch and his business partner Sushovan Hussain over the fraudulent sale of their software giant Autonomy 14 years ago. With Mr Hussain having settled privately, Lynch's estate is on the hook for the majority of the damages. Valued by lawyers at $450m (£333m) during his US trial, the fortune in Lynch's estate would be wiped out by the judgment. An appeal by Lynch's legal team is likely. But even if the estate is bankrupted, Bacares is sitting on a fortune worth hundreds of millions owing to the way the pair divided the proceeds of Lynch's endeavours. American-born Bacares, 58, worked on Wall Street and the City of London before her and Lynch were engaged in 2001 and married the following year. She has not made any public comments since her husband's death, beyond a brief message from the Lynch family stating they are 'devastated'. But her name has featured regularly in stock market filings, company records and court documents. While Lynch made around £500m from selling Autonomy, Bacares, who was occasionally an employee at the company, sold £15.6m of shares. By the time Lynch's next venture, cybersecurity company Darktrace, made it to the public markets, Ms Bacares was the dominant shareholder. She owned 12.8pc of the company at the time of its London flotation, compared to a 4.9pc stake owned by Lynch. Bacares and Lynch had both sold the majority of their stakes by the time Darktrace was bought by private equity firm Thoma Bravo for $5.3bn last year – netting hundreds of millions of pounds. She is also one of the biggest shareholders in Luminance, a legal AI company backed by Lynch's venture capital firm, that has raised more than $115m. Company filings also show her listed as a director at Bunhill Partners, a now defunct algorithmic trading. The couple's personal assets were also held in her name, including Loudham Hall, the Suffolk estate where they lived, and Bayesian itself. The superyacht, raised only last month, was owned by Revtom Limited, of which Bacares was the only shareholder. This may now present its own legal complications. Families of those who perished on Bayesian, including cook Recaldo Thomas and Lynch's lawyer, Chris Morvillo, are seeking compensation from the insurance company that covered the vessel. Hewlett-Packard, now known as HPE, could also theoretically pursue Bacares if there is a shortfall from the fraud case, although the optics of going after his widow would be questionable. Even if Lynch's estate is wiped out, his family are likely to be well looked after.
Independent Singapore
15 hours ago
- Business
- Independent Singapore
CIMB sees Singapore as key growth driver in ASEAN push
SINGAPORE: Malaysian banking giant CIMB Group is preparing for significant growth in Singapore. The city-state plays a key role as a wealth and treasury hub in Southeast Asia. In 1Q 2025, Singapore contributed 14% of the bank's profit before tax, up from 11% the previous year. Group CEO Novan Amirudin believes this trend will continue over the next five to six years. In a media interaction, Amirudin stated: 'We envisage this percentage to grow over the next five, six years because of the role that Singapore plays today within the Asean market. It's clearly been a very successful wealth centre, and we have also been beneficiaries of that. 'Singapore has also been an established treasury centre. A lot of multinational companies or regional companies are using Singapore as their hub to manage treasuries,' he added. CIMB views Singapore as a crucial wealth and treasury centre to connect to its broader ASEAN business. The bank is shifting away from a universal bank approach, with plans to adopt a strategic niche approach for each market it operates in, moving away from a one-size-fits-all model. By focusing on specific market segments, CIMB plans to increase its impact and efficiency. See also Economist says recession will 'certainly hit' Singapore This focused strategy has already resulted in impressive outcomes, including a sixfold increase in Singapore dollar-Malaysia ringgit transactions and substantial growth in its Malaysian customer base in Singapore. Innovation drives CIMB's strategy, particularly in supporting new business sectors. The bank has started offering simple sustainability-linked loans for SMEs, created digital enrolment processes, and is actively supporting expansions in the Johor-Singapore Special Economic Zone. CIMB initiatives in data centre financing stand out, showing the bank's forward-thinking investment plans. Acknowledging how operating as a universal bank is unsuitable for CIMB amid shifts in digitalisation and regional competition, the bank is diversifying its income sources and focusing on niche segments. Nearly 30% of income now comes from non-interest revenue, such as fees, foreign exchange, and advisory services. The bank's regional strategy indicates a clear understanding of different market dynamics. In Singapore, it capitalises on the market's strengths as a wealth and treasury hub. In Indonesia, it is exploring opportunities in Islamic banking. Meanwhile, in Thailand and Cambodia, the focus is on cross-border wholesale segments. This tailored approach helps CIMB maximise its resources and potential in each unique market. To manage economic uncertainties, CIMB has been carefully reducing its risk profile, reducing credit losses, and keeping exposure low to unstable markets. Amirudin explains their philosophy simply: 'We will operate in different jurisdictions based on how we can contribute to customers and societies in that particular market.' By combining strategic focus, new financial solutions, and a solid understanding of local market differences, CIMB Group sees itself navigating the complicated economic environment of Southeast Asia in the near to medium term.
