S'pore tops the chart again when it comes to millionaires

[WolfT]

Every enbloc produce hundreds of 'cash' millionire. Most of them just need to downgrade to resale hdb and live on passive income on their cash hordes.

[redcorolla95]

According to a JPM report in Feb 2010, based on DOS numbers the estimated household net wealth was about S$350k per household in 2009.
This Feb, DBS Treasures said they have about 70,000 customers who have $350k of money sitting with them.
Last Nov, HSBC Premier said they have 65,000 customers; the same people say that Singapore's affluent & mass affluent control about 94% of Singapore's liquid assets.
Last Oct, Merrill Lynch & Cap Gemini said Singapore has about 80,000 HNW individuals.

So 15.5% of households being millionaires is quite consistent with all these findings.

Ok thanks redcorolla for presenting me with all the information and evidence. I was secretly hoping that the report may be flawed or wrong so that I don't have to feel like I am struggling to get into the millionaire club without much success, haha!

Seriously, one question I have is - how do these people do it? Did they start out rich and just got richer (e.g. inheritance, owning a successful business); or they did it the old-fashioned way which is save, invest and insure? The general belief is that the rich get richer, which is justified considering they have access to many more financial products (e.g. hedge funds or private equity opportunities which are open only to accredited investors); so how can a "normal" person earning say median income ever hope to enter this league?

Would appreciate some advice from those who are already there (i.e. rich, financially free or in the millionaire household club), if possible. haha!

Unless one has wealth from an en-bloc or inheritance, it's very hard to earn the median income and save & invest it until one reaches the top 15.5%. The Millionaire Next Door (which is very hard to beat for sensible advice) suggests being thrifty and gaining a high income through a business or employment.

On a slightly more encouraging note, according to the latest Yearbook of Statistics, about 12,258 people graduated from university with their 1st degree in 2009, while between 1985 & 1987 there were about 41,393 babies born on average. So if you're a graduate, you're be in the top 30% of the population and then if you marry another graduate who works, you should be in the top 30% of income earners.

So probably if you're a graduate working couple in the 2nd half of your wealth accumulation phase i.e. working + investing, so halfway between 25 & 65, then that puts you in the top 15% of households in Singapore.

The main limitations to this very rough analysis are:
1. Foreign talent - about half of them are graduates
2. Non-graduates start businesses & get good jobs
3. Graduates don't just come from NUS, NTU, SMU.
but I guess refining this will take a whole lot more effort than 10 mins of google.

PS: since I remember reading somewhere that Musicwhiz has an MBA, that should put him in a very comfortable position.

[Musicwhiz]

PS: since I remember reading somewhere that Musicwhiz has an MBA, that should put him in a very comfortable position.

Haha thanks for the statistics once again!

Yes, I do have an MBA from NUS, but to be brtually honest, it has NOT helped me secure a very high-paying (or high-flying) job at all. Compared to my peers, I am still lagging pretty far behind in terms of job position and salary. What the MBA did help me to do, though, was improve my investment knowledge and business acumen skils - and for that I am thankful for it. (Heck, I paid a princely sum for that MBA, so at least it is generating some form of returns for me, LOL! )....

[redcorolla95]

PS: since I remember reading somewhere that Musicwhiz has an MBA, that should put him in a very comfortable position.

Haha thanks for the statistics once again!

Yes, I do have an MBA from NUS, but to be brtually honest, it has NOT helped me secure a very high-paying (or high-flying) job at all. Compared to my peers, I am still lagging pretty far behind in terms of job position and salary. What the MBA did help me to do, though, was improve my investment knowledge and business acumen skils - and for that I am thankful for it. (Heck, I paid a princely sum for that MBA, so at least it is generating some form of returns for me, LOL! )....

Well business & investment acumen go hand in hand.
Buffett has pointed out that he's a better businessman because he's a better investor and vice versa.

Then the people like us learn from the people who learn from Buffett.
http://alephblog.com/2011/05/17/learning-leadership/