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The Real Secret to Wealth: Multiple Sources of Income | Bob Proctor

you know i often take a look at what i'm learning and i have to laugh to myself because it's it's so far beyond anything i would even dream about when i started to read this [Music] then i started to understand earning money is like driving a car or combing your hair or getting dressed you just have to learn how to do it and once you learn how to do it you can put it on automatic pilot and of course you put it on automatic pilot that it keeps growing now there's three income earning strategies there's only two ways to earn money i'm going to give you three strategies but there's only two ways one is money at work and the other is people at work so here's the three strategies refer to them as m1 m2 and m3 now m1 is not a good strategy and yet it's used by 96 out of 100 people 96 of the population are using m1 strategy and it won't work it's got a problem it's got a serious problem it's called saturation because this is where you trade time for money and the person runs out of time m2 is a great strategy if it's only used by three people out of 100 and for very good reason this is where they put money to work they put money to work earning money now m3 is something i stumbled on back in the 60s and i didn't understand what i had been doing but i was earning a lot of money and so i thought what is the difference between people that are earning millions or earn a million or i mean what is the difference and i couldn't figure it out and so i kept and then i thought i know what the difference is they don't just have one source of income and only one percent of the population follow the strategy these people multiply their time by setting up msi's multiple sources of income i want you to think our world is changing there is just absolutely no question about it and the world's not getting bigger the world's actually getting smaller you're only a short time away from anywhere in the world it's actually getting smaller we have can have business all over the world you can have it all over the world you can you can have business all over the world through multiple sources of income this is a given this is real this isn't some neat idea that you're hearing in a seminar this is something you can do you can set them up all over the world you can actually have sources of income you can have money coming from places that you never dreamed of this is like monopoly i mean it's like it's a cute game but is it real no it's real it's very real you can just keep adding sources of income there is no end to it you think wow are they all the same size no they're not all the same size would appear that way they all have one thing in common look at the screen real carefully they have one thing in common they all flow into your bank ding ding you like that yeah it's beautiful and it just keeps adding up yeah isn't that cool from every part of the world it just keeps coming in and i love it i just love it so much fun i hope you enjoyed this video we put a lot of good information up here and it causes everything in your life to get better if you'd like us to notify you every time you put a new video up hit subscribe and then turn on notification check out all our videos and we will notify you when we put a new one up [Music] [Music] you

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The Untold Truth About Money: How to Build Wealth From Nothing.

Let this circle represent $1,000,000 This is what ten million dollars would look like This is what one hundred million dollars would look like and this is what 1 billion dollars would look like Jeff Bezos the founder of Amazon has a net worth of 117 times this number and then There's you You're probably working a job right now one that you got from the degree that you studied for in university you probably don't have much in savings your living expenses seem Ridiculously high you feel as though you're not paid enough You have credit card debt that needs taking care of maybe your student Studying for a degree that you ho can and your job that you hope can bring some good money You probably don't have any savings only a pesky student debt hanging above your head wealth getting rich That all seems like a distant dream.

How did they do it you ask yourself seeing all those millionaires billionaires Especially the ones who got there at such a young age It baffles you it makes you angry they got lucky they were born into well They cheated their way to that money doesn't make them honey as evil and you're not smart And I'm just unlucky those dreams you had of buying that mansion your favorite sports car paying off your mortgage traveling around the world They'll forever remain that way just dreams Nothing more nothing less. You come to the harsh realization. It's a rigged game It's been a rigged game from the start in you You're on the losing side of it But what if I told you you were wrong What if there was a way of getting there an actual equation to wealth a science behind the way money works What if you didn't have to abandon those dreams of paying off your parent's mortgage or traveling around the world? Would you call me a liar for saying so I promise that I'm not and by the end of this video? You'll understand there's a side to the coin that you're not being shown but I warn you the road is tough It's filled with struggle.

It's filled with ups and downs It will need swallowing some difficult roofs of the school system and society Haven't told you yet and let me be clear There are many of you who will not make it to the end of this road But for those of you that do at the end of this road lies wealth beyond what you thought you could attain at the end Of that road lies the freedom of never having to worry about money again so Are you with me? Still with me then let's not waste any more time What do you really think about money is this something you work for is it earned or is it inherited? Is it the root cause of all evil? Are you desperate to have more of it? Have you been chasing it? most of your life truth is most of what you think about money has been influenced by your upbringing and environment if you were born into a family that didn't have much money growing up then you're more inclined to believe that YouTube will not Grow up to have much money or perhaps you went on the complete opposite end and decided to make as much money as you can so that you will never be In that position again the fact that your school didn't teach you much about this subject Doesn't help things and because of this most of you are going to have false beliefs about money that aren't going to help you on This journey now stick with me here because we're gonna have to change the way you've been seeing money your whole life Hollywood has always had a habit of depicting the wealthy and rich as evil backstabbing entitled or corrupt individuals Question is have you bought into that stereotype a Recent report released by Wealth X showed that of the world's ultra wealthy those that had a net worth of 30 million or more 68 percent of them were self-made and it seems like every other study backs up this conclusion Warren Buffett self-made billionaire Howard Schultz born in poverty Oprah Winfrey born in poverty Jeff Bezos self-made billionaire Elon Musk self-made billionaire Sara Blakely self-made billionaire What is it that these people know that you'd on truth is your equation is all wrong here's the 2-dimensional equation that you've been taught money equals salary earned from a job past a certain point the prospect of getting a job Becomes the sole purpose of your education.

So what's wrong with that you ask? I'm gonna assume that if you're watching this you want to make money a lot of it and in a short amount of time as Possible if that is your goal. Then this equation for generating money will never get you there We all have a precious resource the most important resource for Hall And once it's gone There's no way of getting it back that resource is time in a standard job the amount of money you burn is Dependent on the amount of time you put into that job if you earned $20 an hour and worked 40 hours a week It would take you nearly 24 years to reach a total of 1 million dollars But that is without subtracting any taxes or any expenses that you will incur over 24 years and let's not forget that Inflation would make your 1 million dollars less valuable the reality.

Is that on a salary of $20 an hour? You can only really be a millionaire at an old age by living frugally and most of that precious Resource known as time has slipped through your fingers. You traded all that time for money and it wasn't even a substantial amount either So again you ask yourself. How is it then that there are self-made millionaires and billionaires that such young ages what makes them so different and the truth is They have a better equation than you they have a way of understanding money that you haven't quite grasped the earth Pay very close attention now stop chasing money in a capitalist society The rules of the game are as follows You are paid in proportion to the perceived value that you have and the people that perceive your value they are the market the Consumers of the economy the market is you your friends your family your neighbors Your country people complain that football players are overpaid, but for players to be paid millions There has to be a market for the football industry in the first place People have to see the value in football in the first place for them to want to spend money on matches and merchandise and if the market is a high demand for football Guess what happens to the players who are at the top of their game? They are paid generously for it It's not about how hard you work the cleaner that sweating and tiring himself out every day is paid far less than the accountant sitting behind a desk Why? because the market perceives the value of what the cleaner does to be far less than the accountant as harsh as it may sound the Cleaner can be replaced by anybody.

It isn't difficult to learn how to do his job And therefore the market will not pay him more than the accountant the guy who spent years studying numbers The guy who has saved his clients thousands on their taxes But even so we just discussed how getting a job is in the right equation to amassing a great amount of wealth in a shorter Period of time so then how can we increase or perceived value? What is it about people like Elon Musk or Jeff Bezos? That makes their perceived value so high the first step to this equation of wealth is quite simple if you want money solve problems if you take a second to digest this statement you Realize that just about all money runs from this basic premise if it solves a problem Money will be thrown at it If it's a million-dollar problem, then the solution will make you Millions If it's a billion dollar problem Then the solution will make you billions think about all the problems that our site like Amazon solves the hassle of going to a store that hassle of having to wait weeks for a delivery cheaper prices and so on not to Mention all the other companies that Amazon bones and the problems that those companies solve Jeff Bezos helped solve a billion-dollar problem and also awarded favorably for doing so If you've been chasing money, then you've been doing it all wrong It sounds almost paradoxical but if you want money It isn't money that you should be looking for you should be looking for problems and more importantly Solutions to those problems and once you found that solution make a business around it Wait, so that's it Just solve problems and money will appear so I'm gonna have to create the next Amazon for me to be rich or the next Facebook Or Google you've got to be kidding me, right? I don't even know how to code I don't even have the money to start something of that scale I don't even hold on your wants more going into old patterns of thinking start with a problem always start with a problem Listen to the market around you What are people saying they don't like? What are people saying they wish existed? What are people saying frustrates them? What do people think is incredibly inconvenient? Is that a problem that you can solve and also is a problem that is worth solving The final step of this equation to wealth is finding a scalable solution to the problem your solution needs to affect a Magnitude of people starring a restaurant that's not scalable You're constrained to the local area and the footfall of that area but a franchise now, that's more scalable Is your solution a piece of software then that means once that software has been built you can scale it Infinitely online without needing to worry about things like production or shipping costs as it's all done virtually Good luck finding infinite scale with a job, but be careful does your solution require your time to generate money Let's say you were a yoga teacher that charged $100 per hour Congratulations, you only made yourself another job disguised as a business There's only a certain amount of lessons that you can feasibly do in one day And therefore your income is time-bound, but if you created an online yoga class that ran 24/7 with lessons you only had to create once now that is scaleable scaling your solution is critical here So do not get lost on this point automation also plays an important role systems and processes will keep your business running like a smooth machine if Implemented properly if there is something in your business that you can outsource to somebody else or hire an employee to do it for you Assuming it financially makes sense for you to do So then do it tasking yourself with everything is a bad thing as much as you may think you're the best There's someone out there that can do a better job than you once you've found a solution It's your job to make sure that solution can be accessed by everyone in your market It's not about your ego and it's not about what you're passionate about.

The market doesn't care about your passions So now that you have your profitable business running with the right systems and processes in place It's time to move on and reap what you sow There are two likely paths you're going to face at this point you either Continue your business or cash in and seller This is the acquisition the moment someone buys the solution that you spent years building a business around This is Instagram being acquired by Facebook for 1 billion. This is PayPal being sold to eBay for 1.5 billion of which 165 million went straight to Elon Musk's pocket and the countless other liquidation events that happen across the world This is where all the effort that you spend into building. Your company comes to fruition And if you choose to continue running your business, well, there's a multitude of reasons for you wanting to do So maybe you love the company that you built will want to stick with your baby Maybe you think you can add more value to the company and sell it down the line for more than it's currently worth Perhaps that business runs passively in the background so you don't have to do much to keep the wheels turning Or maybe it's a combination of these three things.

Either way you did it You solved a problem that the market wanted solving and it were awarded you favorably for doing so and so now I ask you what? Was it all for anyway? For most of you it was never about the money Money is just a piece of paper a number on a screen Its value is only backed up by our belief in its value From the very start this was never about the money Paying off the mortgage buying your dream car traveling around the world never having to worry about your financial situation It's the freedom that you were looking for.

Your destination wasn't anything monetary related It was a feeling a sensation The ability to do what you want whenever you wanted without ever having to cast the thought towards can I afford this have I used? Up all my holidays for the year. How am I going to pay the rent? Will I be able to live off my pension? What dreams will I have to sacrifice? Because I can't afford to pursue them the most important lesson from this video was never about the nature of money It was about the one valuable resource that we all have the one resource We will never be able to reclaim time Is giving up a large chunk of your time towards a job that you probably don't like worth it Is your life settled on working coming home watching the telly? Sleeping waking up the next day and repeating the same cycle till you retire How many more hours of your life do you let slip through because of this pattern? Or perhaps you're fine with that reality Perhaps you have no other choice but to follow that path for the time being and if that's the case There's nothing to worry about the most you got from this video was a little entertainment and maybe a change in perspective but there are those of you that understand the other side those of you that have the desire to Never need to worry about money ever again.

And so I feel the need to remind you Stop chasing money chase problems and find the solution to those problems This is the equation through which all money is found if you desire Liberty through never needing to worry about money ever again Then let's solving problems be the meaningful struggle in your life Does it mean you'll be happy at the end of the road doesn't mean you'll feel fulfilled only you can answer that question But if your struggle is meaningful then perhaps it's worth pursuing And there is your equation to wealth Of course I missed out on a lot of intricacies in this video the topics of business money Entrepreneurship are far too vast for me to cover in a single video like this But if you do want to get started on this journey I do recommend you read the works of MJ DeMarco who heavily inspired me to create this video and it's also important to come back To an original point that I made at the start of this which is that most people will not succeed for various reasons But the most important part is failing Failing fast and moving on to the next thing and if you're out there doing something that isn't strictly related to a business But you want it to make money then asking yourself the question of what problems am I solving? Could lead you to find ways of better Monetizing whatever it is that you're doing and that also includes a job and a career if you can solve more problems and find more Solutions at your place of employment you have something that you can use to leverage a higher salary But I will end this all on the same message that I have repeated numerous times in this video Stop chasing money and start chasing solutions to problems Hey, you've arrived at the end of the video and thank you so much for watching, but don't click off just yet I do want to take the time to say thank you very much for watching to the end these things Take quite a few sleepless nights to research script film and edit So you can't imagine how much I really do appreciate your support if you genuinely Enjoyed this video then don't be shy hit the like button and if you disliked it hit the dislike Vaughn twice just to be sure And comment down below and let me know why my goal with this channel has been to create entertaining documentary style videos on business finance and life in general And if that sounds like something you'd be interested in and you'd want to tune in for more hit the subscribe on and hit that Notification belt make sure all your notifications are turned on both All of that being said, I hope you have a wonderful rest of the day as per usual.

My friends hand ahead salute You.

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Transferring wealth to your children

[Music] well if you want to transfer transfer wealth onto your children there's no right there's no one-size-fits-all there's a number of routes that you can take the most simple thing is that you just simply gift that money to them and there's some complexities around it it stays within your estate for seven years and you have to survive seven years for that to be beneficial from an inheritance tax perspective um and then you also are giving up that money to your children and so there needs to be thought about are they adult enough to be able to look after that money and be a custodian of it or are they going to go and spend it on things that that you perhaps wouldn't want them to um and there could be other complications in terms of relationships and divorces that could see some of that wealth go elsewhere so it's not suitable for everyone but it is a very simple way to do it and then there's other ways that you can look to do it with with things like trusts where you can set up a trust and you can then retain the control of that those assets to pass on as as and when you want to [Music] you

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World’s richest 1% have more than twice wealth of 6.9 billion people combined: Oxfam report

global wealth inequality is getting out
of control the world's richest 1% has more than twice the wealth of six point
nine billion people combined rmzo has the story a new report is highlighting
the widening degree of global inequality ahead of the World Economic Forum in
Davos which brings together some of the world's wealthiest and most influential
people the anti-poverty NGO Oxfam international study released on Monday
dubbed time to care shows the world's 2,153 billionaires have more wealth than
4.6 billion people who comprise 60% of the world's population it also says the
wealth of the world's billionaires is growing by 2.5 billion dollars every day
while the poorest half of the global population is getting poor Forbes list
of billionaires used by Oxfam said most of the wealthiest people are in the US
and they include Amazon's Jeff Bezos Microsoft Bill Gates Berkshire
Hathaway's Warren Buffett and Facebook's Mark Zuckerberg the report also
underscored gender inequality saying that 22 richest men have more money than
all the women in Africa combined the report noted that the number of
billionaires around the world has nearly doubled over the past decade since the
global economic crisis partly due to government policies such as the 2017 us
tax overhaul that cut taxes for rich people and corporations in America the
report states governments around the world are not doing enough to resolve
wealth inequality and it calls on policy makers to top inequality busting
policies Oxfam recommends nations to tax well that fairer levels saying that
taxing an additional half a percent on the world's richest 1% over the next
decade would generate enough funds to create 117 million jobs in education
health and elderly care and other sectors on ji-yong arirang news

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Inequality – how wealth becomes power (1/3) | DW Documentary

this is the airfield for private jets at düsseldorf Airport entrepreneur Christoph gröna is one of Germany's super-rich people who have a lot of say in this country but a rarely heard in public corner is worth millions and private assets and company shares all of it and self-made [Music] let's say you have 250 million you could throw it out the window and it'll come back in through the door you can't destroy it you can buy cars and they go up in value you buy houses and real estate is worth more you buy gold and the gold prices go up you can't destroy money by consuming we've been following coasts of Kona for six months through him and many others this film takes a look at inequality in Germany a first glance Germany is a rich and powerful country full of opportunities but if you look closely you'll see wealth is more unevenly distributed here than in just about any other industrialized country success often depends on your background [Music] why is that do the differences threaten social cohesion and democracy to find some answers we go around the world and speak to a Nobel Prize winner and other experts who have looked deeply into the issue of inequality the world is at a crossroads today people sense that the control of their nation is being stolen from inequality is the most pressing social problem facing us today welcome to the land of inequality [Music] it's almost 8:00 in the morning in Berlin good longer my house the driver is already waiting when the boss comes he has to get moving right away Christophe Colonna a teacher son has made his way to the top often working 20 hours a day he's what's called a high achiever I don't have a driver because I'm lazier I think I'm too good for that on the contrary I like driving I'm a passionate motorist but the question is what does my company pay me for for sitting behind the steering wheel or for working corner earns his money with real estate hardly any company in Germany builds as much as his cg group does and in the housing market the prices only go in one direction upwards his company has just bought a very special building the developer wants to turn their Stieglitz a Keisel office block into the tallest residential tower in the city custom governor is always up for a challenge he wants to run all the way to the top in less than five minutes a race against himself 30 floors 120 meters 600 steps an employee times him with a stopwatch it's half a minute faster than the last time angry well it was pretty perfect but I could still do it better I could still remember back when I was finishing high school I watched Boris Becker when in Wimbledon and I thought just you wait I'll be right up there with you you know today's an apartment here will cost between five and ten thousand euros a square metre from up here corner can look down on many of his construction projects you can actually follow the trail of the last 20 years here in Berlin nearly 4,000 apartments and another 3,000 are under construction we've played a big role in housing construction here one stop this is Coronas headquarters in Berlin every company like this is a realm with the boss at the top and the staff beneath him corners company now employs 500 people they all have good contracts he says the 2015 tax statement from your brother there's a lot to pay one of his most important employees is his personal assistant Angelique Lisa you still in Dusseldorf then he'll be going on to Zurich then tomorrow he'll be back in Berlin Friday and Leipzig and then he'll be away over the long weekend and what about sleep not a lot there are rumors of between four and six hours I also don't think it'll be much more depending on how busy he is or whether he's traveling you can tell from when his emails arrive I'm an assistant like her has at least the same level of stress I have the boss is only as good as his assistant you don't notice it with her she's only been in the job for a few months so she's still fresh but she also has the Constitution for it Mario Lauterbach guards the door downstairs he's had a permanent contract as a security guard for half a year benzine outside gets in yeah but I went to school for 14 years I speak two or three foreign languages so if I ever got the opportunity again and had the initiative I could imagine becoming a lawyer or a judge that's something that interests me a lot latter Bach earns about 2,000 euros a month gross that's enough for a modest life but not much more his boss on the other hand has been able to build up millions of euros and assets can the guard live on what he earns from me that's what counts if he can then I've done my job as an employer if I pay a guard so little that he can't live off a salary then I've done something wrong so you think comparing him with you is nonsense of course it's nonsense I've stayed home from work due to sickness three times in 30 years ask my guard how many times he's been out sick if I have a slipped disc I come to work if I have a 40 degree fever I come to work if my wife quarrels with me and keeps me up all night I still come to work ask my security guard comparing us isn't fair or correct justification is miscarriage dismissed fish dish will he ever be able to afford a house with a pool of course not but he does not want that I know my security guards I know my caretakers would you like to trade places with her groaner didn't say yes right away I guess if I had to answer spontaneously my first answer would be no and I believe if I thought about it for a long time it would still be no that's actually got a lot less to do with him as a person or what he does it's just a question of my own attitude I wouldn't want to have that much responsibility would you like to have a house with the pool yes but then maybe not here in Germany where in Greece so whereas the one can only dream of a house with a pool the other can afford several properties Kristoff corner has a villa in Berlin and a penthouse in Cologne with a view of the cathedral but little time off how much distance should there be between those in the middle and those at the top and how big is the gap in reality there's a lot of data about poverty in the poor but very little about the rich estate asset registry would help but there isn't one and so a team from the German Institute for Economic Research is trying to find out more if you try to represent the wealth distribution in Germany in a graphic way you can do it quite simply on an a4 sheet of paper and a few look you can imagine a coordinate system like at school with an x-axis and a y-axis and with the y-axis this here I show the amount of wealth you can easily display ninety-five percent of the population on this sheet here in the – area because a part of the population is in debt or even insolvent and then there's a relatively broad area where assets are virtually zero until it finally starts to increase exponentially at the outer edge instructors this describes 95 percent of the population but the question is of course how far away is the richest person from this manager magazine puts the Reimann family business at the top of its rich list for Germany the family's estimated worth thirty three billion euros so if 95 percent of Germans are graphed on an a4 sheet that aemon's would be a whopping six point six kilometers further away every era has its mother lode in the past car makers made big money earlier still the families who owned the big trading houses became hugely wealthy now real estate developers have joined them gustaf corners rice began here in leipzig 20 years ago he invested when prices below it was all ruins or scrap [Music] I love everything you see to the left and right has been redeveloped built and rented out by us his company says it now builds one in three new apartments in the city but coast of Cavanaugh's Korea has been unusual he was not born a boss he used to work on construction sites himself every other stone has been replaced here with expertise with a sense of proportion to create an entirety and it helps if you have worked on scaffolding like this yourself I can do masonry I can lay concrete I can lay steel I can plaster walls lay tiles put up the sods that was my career the company started out as christophe grew nabokov Steen's to building services then we took on specialized construction then contractor work and project development until we became the company that we are today Kona has also invested in this former industrial district this is the class family Thomas and Kirkland with their two children they live in a rented apartment around the corner they wouldn't mind having one more room well you have to say it's an oasis in a built-up environment each building has nine classic apartments and two penthouses one large and one small at the top I'd like to show you all the floor plans in the trailer so we're about where the woman is right no the house is next to that the houses themselves or at least 20 meters further back to the penthouse apartments there we have a four room 123 square metre apartment with a 60 square meter roof terrace I think we need to be realistic the penthouse isn't what we need or what we can afford I take a classic four-room apartment with a balcony or shared garden I think that's what we'd be looking for that would interest us then let's take a look at a floor plan parents would practically have a separate wing here a sandpit playground and recreation area so in general the target group is young families yes typical young families give me some idea of the scale I'd be interested in a four-room apartment first floor would come at three thousand four hundred fifty euros the foreign apartment would cost four hundred and fifty thousand euros to buy the classes are a typical middle-class family they both have good jobs buying property used to be the way to start building up assets was a Matthias tarbush at the spoke we were 30 before we could even start to think about our old age and accumulating wealth to date now I'm almost 40 and we still haven't managed to put away much in terms of reserves I even come up with the minimum amount of capital so that banks will be able to give us a loan a sticking point the screens not food the other fueled 94 percent of buyers here aren't from Saxony that means this is currently a market where normal Saxons can't participate even each Michi encode the class family isn't the only one with little chance of owning their own place in all the richest 5% of Germans own half the apartments and houses every second person owns no property at all most Germans rent and are having to pay more and more for living space the purchase price of an 80 square metre apartment has soared in the last 10 years leipzig is an extreme case only 10% of the people here own real estate 60% of all new buildings and 94% of refurbished all buildings have gone to bias from out of town [Music] don't you want to get your shoes dirty mister I can feel pretty fastidious while the Klaus family hesitates others are snapping up the houses on the market did he make a killing again he did did he get another bargain we keep getting repeat offenders here they buy one house after another this is the third right it's his second his second complete one and the apartments before we went for a meal and I said it won't cost less than 4.5 and he got it for 3 well I'm crazy right today the time is ripe for us to make money here with the standard and my company urgently needs it that's not a crime no I don't think it is such a bad thing the real estate market is symptomatic it enables those on top to make more profits while others can hardly afford to live in their own city anymore behind this is the more basic question does profit for the one mean loss for the others today's typical property buyers are rich people well-off retirees yes and investors the others like Thomas Klaus and his colleagues can only look on [Music] honestly when I look at what's being built in the sluicey district I need a practical apartment to live in and I don't think they're building them to be lived in they're building them as investments and I can't join in that game none of my colleagues can't either that probably also creates housing that doesn't meet the needs of the city and most of the population scary because many people are being left behind banks digna there are many parts of life see who are nowadays you find one place with high priced apartments and another where the people who just couldn't afford to live in them anymore had to move to it's a crappy situation when you say that for whatever reason you have to get out of your apartment but you'd like to stay in your neighborhood but that's not possible [Music] in a neighborhood in the eastern part of Berlin bigger schlosser has been the scene of an escalating conflict between residents who are afraid of losing out economically and the man they accused of making the deal of his life here Gustov kkona arrives and his security guard stays close by when he's here he usually gets police protection I'm going to be disturbing your lunch break today so let me at least say good morning Korea has been the focus of an angry backlash his opponents filmed the first encounter with residents and protesters let me ask you is this a dialogue it was nice whether they were meeting me for the first time we could call it the birth of the boogeyman they got to see an entrepreneur who has arguments on his side and won't back down and it's precisely this stupid thinking that prevails in society there's always a direct connection he makes money and he's become wealthy so we must have stolen it from someone it's all about politics he's charging 12 euros a square metre nobody can afford that well we have smaller apartments 35 40 50 square meters which any nurse can afford even at 14 euros a square metre as long as it's well made has great light she'd love to live there instead of in 60 square meters over there for 8 euros a square metre Clara knows that many of his workmen or the police officers who protect him had difficulties finding affordable housing but he says his millions of square meters are not the cause of the problem but part of the solution [Music] how do you strike the right balance between rewarding achievement and letting everyone share in it what consequences does inequality have for society the real general finding is that inequality being a way of making people feel more distance from one another stretches the social fabric it phrased the social fabric it pulls us apart from one another physically experientially and psychologically there's nothing necessarily wrong with inequality of course people have an unequal endowments of intelligence and beauty and they have different parents and where I start to worry as a sociologist is when people accumulate dynastic wealth and dynastic wealth means a lot of money that gets transferred down through generations because that starts to stabilize systems of inequality across society and that constricts the opportunities available to everybody else coast of Ghana may have worked his way to the top but even for him there's still a glass ceiling you can't buy your way into the world of dynastic wealth you can only be born into it Kirsti on fly – best all-time traces his family tree back to the year 1135 he's a descendant of the fogers one of the richest families of the Middle Ages you can always use a winch to pull in the deer and you've killed a stag which normally weighs well over 100 kilos then you need mechanical help to get it into the vehicle would look a bit odd when you drive around towing a dead deer in a trailer people sometimes find that a little strange the car he's is to transport dead stags as an old Austrian military vehicle when bechtolsheim uses it in the 300 hectares of forest he owns somewhere in central Germany we're not allowed to say exactly where back was his condition for letting us film him discretion is everything why had some visits in the morning a forest is a wonderful feeling because you have the run of it so to speak Keltie I think it was the publisher of deed site countess den Hoff who once said you always have to own everything you love I can comprehend the question philosophically but if I answer according to my natural instincts I'd say yes I like owning things that I find beautiful man rush to gardenia demonize Shirin imprinted by citizens not Eagles it had the great inequality that exists room on your folks is wanted for the economy and it's unavoidable obviously if you're an entrepreneur and you have inherited something and keep it running properly you will have more than someone who's just an employee do you think that things are by and large fair in Germany yes by and large I do I don't sense any real feeling of injustice and the part of most people on the street lights Lord after stars it can be not having during the week from best Hawthorne works with a view of the main river in Frankfurt he heads what he calls the family office this exclusive establishment is essentially what used to be known as a private bank perhaps you should add that this is one of the few old Frankfurt patrician houses that survived the Second World War intact this old terrazzo floor or this handle this banister you don't often find them in Frankfort today these display cases you can see the remnants of what once made patrician dining culture so special Oscar Moffitt you have to imagine a family office as just that an office that takes care of the interests and all the financial needs of a single family or an individual that ranges from let's say five or ten million to several hundred million not even the employees know all the names of the bank's clientele the wealthy come via personal recommendations they know that from battle time will offer them something that normal savers can't get from a bank these days interest and returns on their money we've done work together to create an asset structure one for the future let's say you want to invest so and so much in real estate and with real estate you also have apartments and commercial buildings and maybe even logistics stick stocks it's maybe thirty percent you might put 10% into pensions and 10% in cash the rest is invested in other things private equity forestry and so on we help families to maintain their fortunes for generations that is what we aspire to the legend surrounding germany's post-war economic recovery sometimes and evokes the notion of a kind of monetary zero-hour when everyone supposedly had to start from scratch if you wanted to get rich you had to work your way up according to the myth what's photomask Noveck shortly before the first world war a former interior ministry official published an almanac of millionaires in buda Shanda in these books you still find numerous names that look very familiar today if you look at the lists of the wealthy you get the impression that old money plays a huge role among the big fortunes today I'm hiding guns awesome for moving our biases line the ups transition dean dean the gap between those who only have work do you and those who belong to the upper class has increased enormously if i took for clue such i think if people understood how how deeply unfair economic competition was in the modern global economy they really would be up in arms [Music] it's the end of Thomas class's shift after visiting the construction site he and his wife considered the real estate agents offer at the moment the family lives essentially from his income his wife has reduced her workers to take care of the children [Music] the children are eager to tell their father about the events of the day they visited their grandmother once the children go to bed the parents talk about buying the apartment in the middle of the city when this dish walked on join us mommy first you are all enthusiastic and a bit dazzled by the idea and the beautiful project and by the question about whom the project is aimed at well at young families like you on the one hand that's flattering but on the other hand when you then hear the price and think about it again these are dimensions where I say that a family like us are out of it we aren't expecting an inheritance or any other sources of outside money we have to earn it on a monthly basis four hundred fifty thousand euros I don't even know how many annual incomes that would be as I income in the severan so at some point you start to worry that the step downwards into the lower middle class is much closer than the step up into the upper middle class I think everyone has the same feeling I'm lucky I have a big employer I feel like I have won the jackpot in Leipzig but that doesn't mean that we can keep up with the developments in the real estate market being mauled the classes are not poor but they belong to a group that has come under pressure in recent years the middle class the people who have no fortunes but have to work for prosperity in recent months thousands have sent in comments online for this film project under the hashtag on Graceland for example they've reported their salaries an industrial clerk in the car industry 1600 euros net a social worker in a rehab clinic 1648 net a civil engineer nearly 2000 net a medical specialist work 12 years of training 2768 net a net income of 3500 euros puts a single person in Germany's top 10% of earners accumulated wealth is particularly unequal half the population has less than 17 thousand euros in reserve that would let them buy a base-model VW Golf all shoes and clothing for 1.6 children from birth to the age of 18 or just 3.3 square meters of a newly built apartment in Frankfurt the vast majority of the gains and income have gone to people at the very top of the income distribution in the top 1% of the income distribution and incomes for people in the middle class and below the middle class have essentially not increased or have even fallen at the bottom very large middle class is necessary for peaceful and democratic societies and if you now have polarization in rich countries and if you have shrinkage of the middle classes then you really have a problem or you are really moving to a new territory that is just unexplored yet in u.s.

The question can really a successful democracy exist with very polarized of citizenship with lots of people who are rich but also lots of people who are below the middle-class level the world is at a crossroads today that if it doesn't try to write a new social contract those who have been hurt the many many people who have been hurt will repel [Applause] there are a few places where all social strata come together but even where they do exist it doesn't mean that the pool the rich and the middle classes actually meet how are they doing they're playing tactically Costa Fiona has paid for a place in a luxury suite in Leipzig main soccer stadium we in the luxury area of paying for their cheaper tickets through our high contributions everyone makes their own contribution maybe that guy pays 20 years for a ticket I'm actually paying 2,000 for mine there's a certain justice there now at the family office in Frankfort the bank's own Forester has come to call I brought all the figures let's start with Finland Christian fund bechtolsheim has been using his clients money to buy up forests in Finland New Zealand and Uruguay what's benefited us you can see it here in the timber prices in Finland the development last year spruce and pine have seen a huge increase since 2016 and that works to our advantage the Sweden solution copy mm-hmm authorities German forests are just insanely expensive there are very few areas available and when an area opens up people jump on it like crazy surprises a double tripled quadrupled over the past 10 or 15 years of course this is also due to the low interest rates that we currently have people are looking for everything they can find where can you invest money where can you safely invested or invested very profitably it's an intrinsic conflict can we briefly talked about Uruguay how does the return look relative to our plans we're doing quite well Uruguay is our most conservative projects this is a new global form of capitalism financial capitalism to find out how the system works sociology stat Brooke Harrington first trained as an asset manager it's a global profession and that's why I had to go to 18 different countries you know from the Cayman Islands and the BVI all the way out to the Cook Islands in the middle of the South Pacific to the Seychelles and Mauritius to New York and London and Switzerland all over one of the things you learn in wealth management school is to regard the world as kind of a legal financial shopping mall and you go to each different state in the world the way you would go to shops in a mall picking out the laws and the conditions that are most favorable for what you want to do or what your client wants to do with a particular asset so what you have to know is a wealth manager is where's the best place to get the laws that you need to do what you want to do with the art collection or the yacht or the family business the family office is the starting point of a global investment chain the wealthy entrust from best all time with their money among other things he invests with these fund managers they send it all around the world ensuring it earns much more interest than say a normal savings account I'm glad that you're here to say it at the outset we are really satisfied with the performance you have achieved so far currently we are at nine point three percent since the beginning of the year they say the secret of their fund is automated investment they have an algorithm that scans the global economic situation and converts it into traffic light signals green means the computer buys a lot of shares and when the signal jumps to yellow will read fewer yeah the curve is flat and you can see it because the signal isn't dark green we do the market timing we are the ones who ensure that a customer can re-enter the market because we operate without emotion we have no emotions our entire set up our entire algorithm is purely quantitative normal geopolitical upheavals such as those in Syria or Ukraine none of them has such a global economic dimension that it could really knock the world economy out of sync and that's our benchmark where we would intervene in the traffic light it has to be an event that knocks the world economy off-balance and at least in history no conventional war has done that many people would now say here are six well-to-do people sitting at the table and all they're doing is trying to increase their wealth for many you are kind of an economic bloat what would you say to them frankly nothing because no one ever asks net I think it's pretty tricky in Germany everyone thinks he can join Deutsche Bank as a trainee at 18 then become an authorised signatory and then eventually a department head and then retire at the age of 65 as a class-b director with a palm tree in the office and a chair with arm rests that world is definitely over that's for sure in the context of modern investor capitalism there's been this massive shift of power from labor to investment it's called financialization dissonance cloud these are very clear elements of an artificial world for which only an abstract amount of money counts a vanished but not the quality of life locally among the peoples in the markets in society now you can get rich from being a rentier capitalist that is not from your work not from the sweat of your brow as they say but from putting your money at the right place and at the right time the right things Tomasz class has been working as an engineer for siemens for nine years he sits on the works council and could imagine staying here until he retires with or without a palm tree we have employees who have been trained here they've worked here all their lives it's like a family it's not just work it's a bit of family and a bit of life the staff and I are very attached to what we do here together during the day good mind some – just recently Siemens posted six billion euros in annual profits but then worrying rumors began circulating investors were reportedly putting pressure on the company saying this plant wasn't fit for the future actually nothing is secure even everyday life living in a rented apartment is insecure we're currently secured by a single income and that is now on very very shaky legs you suddenly realize that when you get a situation like the one we're in now students really insist [Music] a few streets away from the Siemens plant cassava corner has invited all his staff to the company Christmas party he just bought this old post office railway station his wife Anna and his youngest daughter are the first to show up then the boss arrives a lot is riding on him his employees are also worried for much the same reasons as Thomas Klaus in recent weeks the financial Press reported that investors have taken over 50% of the company's shares [Applause] before though dear friends family it's amazing to be able to stand among you you are my motivation seasoned minam will to pursue is easy where my strength yeah I think you have been convinced by a letter from the management perhaps signed by me that we are still the same family no matter who owns the shares no matter who will have a say and so forth yes we do Capital Markets yes we have to refinance ourselves yes we have to reposition ourselves I will also be doing that no matter in what post I will be available to you in the future what we have achieved so far as to be a truly great and big family have a nice evening and thank you at some point every company reaches a certain size where its banking and financing structures are no longer sufficient I have to deal with the financial institutions and all that if I have that under control then I will remain in my post but if I don't then I'll be voted out faster than you can possibly imagine [Music] it looks like the whole world is being shaken up by big money it's a game that few can play and even fewer can win but when those at the top stopped a jump ship and those below have to worry about a crash what effect does that have on a country today and in the future [Applause] [Music] [Applause] [Music]

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Generation Wealth – Official Trailer | Amazon Studios

– If I wanna work 100 hours a
week and never see my family and die at an early age
that's my prerogative. – I would have money as big as this room. And kiss it. – 33 pounds of gold and diamonds
given to me by superstars of the world. – I love money. Come to me. – I've been a photographer for 25 years. With my lens focused on wealth,
I noticed that no matter how much people had, they still want more.

I wanna figure out why our
obsession with wealth has grown. It seemed to be a shift
in the American dream. – I know the name's of the
Kardashians better than I know the names of my neighbors. – This fictitious
lifestyle fuels this sense of inadequacy. – I have the classic Birkin
in almost every color. – The bags start $20,000 and go up. – I realized wealth was
much more than money. It was whatever gave us value. Fame, sex, even plastic surgery for dogs. – It's kind of like the end of Rome.

Society's accrue their greatest
wealth at the the moment that they face death. – If you look great and
you have a nice car, I'm all for it. But at the expense of what? – [Woman] You sell your soul to the devil. – You're so hungry for it you're blinded. – I am on the FBI most wanted list. – All of us are following the toxic dream. – If you think that money
will buy you anything and everything, you've
never ever had money. – Dollars, dinero, money is what it takes..

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How to Make Wealth look Undesirable: Succession

have a drink have a drink you beautiful kabad 
crane [ __ ] you yeah oh well well I I got to   say Well done you won yeah yeah money [Music] 
wins Here's to Us it's impossible to talk about   succession without talking about money because 
every scene is basically drowning in dollar signs   the Roy are a who owns a vast media Empire 
anchored by Amusement parks and a reactionary   right-wing News Channel as a result they live
in a world that is totally defined by wealth they   wear the finest suits and take private Jets from 
luxurious penthouses to Countryside mansions, they eat the fanciest food they drink the fanciest 
wine they have extravagant leisure activities   every single centimeter of their lives has been 
tailor made to ensure they get only the best of   the best taken as a whole The Show paints a picture of what it looks like to live with   all the money in the world conceptually it's a 
fantasy we've seen played out on screen lots of   times before from popular TV series like Dynasty, 
Dallas Gossip Girl billions and big little lies   to hit movies like crazy Rich Asians and the Wolf 
of Wall Street how to to 1% lives is a major part   of our media diet some offer a pure celebration 
of access while some cast a more critical eye.

But pretty much all of them give us the vicarious 
thrill of watching the Filthy Rich play with their   money it's pretty straightforward wish fulfillment.
Most of us live the majority of Our Lives penned   in by Bank balances that are never as high as 
we'd like so it's no wonder we lust after the   idea of a wife where all those limitations just 
melt way and we can do whatever we want all the   time look here's the thing about being rich 
okay it's [ __ ] great okay it's like being a   superhero only better you get to do what you want 
the authorities can't really touch you you get to   wear costume but it's designed by Armani there is 
a term for this 'Wealth P*rn' which describes media   that exists primarily so we can salivate over 
designer clothes and Lux Apartments the term   was coined by journalist Harry P in the year 2000 
it described the fawny news coverage of eating the wealthy in Publications like fortune and Forbes.

But 
the term 'Wealth P*rn' becomes more loaded when it's   applied to Media that's ostensibly lampooning 
this excess while arguably indulging in it. The   Wolf of Wall Street and Billions for instance have 
both Continually divided critics as to where they   fall on this spectrum, so why are we so attracted 
to stories set within society's Upper Crust. Most   obviously wealth really looks good up on screen 
from Lux Apartments to designer clothes to Exotic   locals and the cinematography typically luxuriates 
in It. Cameras whir to capture the madcap excess   or Glide serenely across each perfectly manicured 
set. But that's not quite what we get in succession   their Apartments might be huge and their dinners 
might might cost more than any car I've ever   owned, but the world of the Roys rarely looks 
all that desirable, visually this comes from   the guerilla style of the cinematography the show 
uses free roaming cameramen to create a voyeuristic and lo-fi aesthetic.

This adds a DIY clumsiness 
to a designer World it also avoids the indulgent   Poise style as most media about the 1%. One of 
the show's directors Mark Mylod told Indiewire   that when filming the Roys in any opulent location he 
always makes sure the character is leading the cinematography rather than having a camera 
pan lovingly across a fancy set it's almost   an anti-athetic in terms of The Craft he says 
The show purposely avoids depicting Wealth as synonymous with beauty, the frequently unflattering 
lighting shows every dark under eye Circle   and wrinkle to Perfection and the beige color 
palette becomes overwhelming in its blandness   as series Creator Jesse Armstrong describes 
their lives are somewhat denuded of color. In   short for once being filthy Rich doesn't look 
filthy sexy and importantly the series used onset   wealth advisers de the cast fully inhabit the 
world of the one% grounding it into day-to-day   realism of Life as a rich person The Show was able to 
effectively de-eroticize the whole thing [Music] for example one piece of advice the cast received 
was about how they made their way in and out of   the helicopter notice that none of them ever duck 
the way we'de expect most people to.

That's because   when you've been traveling out way since childhood 
it's just natural is stepping onto a train or   climbing into a car which is maybe like Why Kendal
was so comfortable inside a helicopter that he   actively tries to drunkenly Pilot one because here's 
the thing if you dead Rich your whole life these   idea of being rich just isn't all that interesting 
Cinderella stories like crazy Rich Asians and Rise   and Fall Tales like Wolf of Wall Street are 
so effective because they give the audience   an avatar who enters the world of the wealthy with 
the same dwide Wonder as we would because Wealth P*rn is   really for those of us who will never experience 
that kind of opulence or unfettered freedom in real   life in contrast succession demystifies wealth the 
show pulls back the curtain to reveal the drudgery   and degradation required to create the seemless
luxury.

Like when the Roys are getting ready to   have any decadent Feast rather than simply having 
their tasty treats appear on screen Fully formed the   show depicts every bit of the Pain sticking work 
their staff takes to prepare and serve it and   then Logan gets mad about a bad smell and oders  
the whole thing destroyed before a single bite   has been eaten and I don't want all this sat around 
in the stink Pizza we'll have pizza and so we get   to watch that same Army of service clear 
away a few rent checks worth of a haute quisine and   where succession does show A Cinderella Story it's not 
quite such a whirlwind romance.

Conner whose best   friend is Ferris Buelle is initially paying Willa to 
spend time with him as an escort before the two of   them decide to go steady who but even after the 
relationship remains transaction Willa shacks up   with a delusional rich guy twice her age because 
it's the only realistic hope she has of funding   her own creative Ambitions no matter how ill 
advised they might be you I don't need to see   the reviews you know I don't care exactly the 
plays brilliant who cares what some old white   dude from The New York Times says it's easy to 
write Willa off as a Sly opportunist but Connor   is equally complicit lording his money over her to 
get what he wants and that brings us to the second   part of wealth p*rn's appeal cuz it's never just 
about the pretty things that money can buy but   the power that comes with it enough of this [__] will
make you invincible able to conquer the world and   eviscerate your enemies.

Yet another Rich guy 
thinks money makes you a defecto Super heroe  , which recent comic book Cinema has confirmed 
what are your superpowers again I'm rich but even   if you are building Batmobiles or bulletproof 
armor wealth gives you immunity from the rules   which govern most people's lives any problem 
you encounter can be whisked away in a lurry   of dollar bills yeah yeah money wins there is a 
somewhat dangerous appeal in the idea of being so   strong that we can bend the world around us to our 
wills and the Roys are all high on this particular   power fantasy one of the great joys of watching 
Succession is the Stiletto sharp dialogue which turns   each conversation into a knife fight you don't 
do many of these sioban uh no I'm I'm hard to   get I'm exceedingly easy to get he sure you'll 
understand but he's going to need to offer an   alternative face for this discussion alternative 
face what the [_] does that mean if I drop my pants   I can show you an alternative face how does 
that sound.

These moments also give us an insight into   what life at the top as life the Roy's brutal 
way of talking to one another is a manner of   establishing dominance generally bored of their 
extreme wealth the power it gives them is the   real high and it's a vital part of their identity 
too they all have to believe that they   are corporate Warriors battering your way to the 
top of the food chain through cunning resilience   and ruthlessness in reality the Roys are rarely 
as impressive as they think they are they like   to imagine themselves playing four-dimensional 
chess as they plot and scheme their way toward   the world domination but the truth is that the 
Roys are constantly bumping up against their own   shortcommings. Kendall is an insecure mess and torn 
between a desperation for his father's approval   and a furious desire to take revenge upon him. You 
have a hard time finding a happy medium between   worshiping him and wanting to kill him he's vaguely 
pathetic even needing a personal driver for his   badass motorcycle his anxiety leads him to bungle 
two separate coup attempts and it takes nearly   losing everything for him to finally take decisive 
action.

Roman has his own inadequacy issues which   have left him emotionally detached and sexually 
um incapacitated we never [ __ ] well yeah we do   no we don't. He covers this with an air of abrasive 
bravado but when push comes to shove he is still   a little boy terrified of his father. Siobhan often 
seems like the smartest and most confident sibling   but he and she continually overplace her hand and 
finds herself caught up in Logan's games and then   there's Connor who is so insulated by wealth that 
he has effectively lost touch with reality he's a   grown man living out quixotic fantasies until 
the money rise it's a half a mill a week I've   got AusterIitz. I've got my campaign and I'm not super 
liquid so I'm just I'm just wondering if I can hit   you for like like uh a little $100 Mil a little 
$100 Mil yeah well you maybe maybe but you have   to quit your campaign and at the end of the day 
every one of these kids just wants a kiss from   Daddy [ __ ] what the [ __ ] Frank how can we 
solve this this you still want to pursue this   yeah of course I want to pursue I want to announce 
this is part of the whole thing this is the secret   sauce do we need to sweeten the offer you want to 
bump the offer another point do you want to call   your dad do I want to call my dad no I don't want 
to call my dad do you want to call your dad no no   do you want to call your dad does anybody want to 
call their dad okay nobody wants to talk to their   [ __ ] dad so we've started so let's buy this 
[ __ ] company I'm pushing the bit to 120 okay   okay the truth is that none of the Royers of the 
machia ellian Geniuses that they think they are   when their plans succeed it's rarely because they 
intellectually outmaneuvered their opponents or   executed some daring scheme is just because they 
are really really rich clearly Kendall imagines   himself as the Unstoppable boardroom Warrior 
laying waste to his enemies and seizing what   he wants reality he's just a rich kid playing his 
dad's money he wasn't able to persuade seduce or   intimidate his opponent into a deal so he's just 
thrown money at him until he agrees there's no   marriage to his victory no proof of Talent OR 
character he wins as the Roy always do simply   because of how rich he is cuz I'm going to stuff 
your mouth with so much money you're going to Gold   figurines non-disclosure agreement non- voting 
shares non-compete I'm going to lock you in a   golden cage you with a silver dildo and pay you 
so much you sing whatever song I want and that's   ultimately who the Roy are that's why the show is 
able to avoid the wealth corn trap everything in   the Roy light what's expensive and yet practically 
n of it seems desirable it's clear that we aren't   watching the Masters of the Universe go about 
their dobly business instead they're just a bunch   of entric insecure [ __ ] lording her power so 
that they can feel important and even their most   extravagant moments tend to be tied up to bet it 
they'll buy out an entire theme park to in back   their children's love or barter holidays with 
their mother to save their dad a piece of real   estate ultimately all of their Adventures boil 
down to greedy squabbles over extra dollars I love   you uh-huh great thanks no I don't know I love you 
I love this rock bye Rock you're dead what does it mean I won't let anything happen to you you told   me you told me you wanted an open 
relationship on our [ __ ] wedding night oh so you been stewing on 
that well yes I have been St enough actually I'm not a hippie shift 
I don't want to stuff a dildo up   my I don't want I don't want to 
do threesome okay on our wedding   night bang Shanghai into a into 
a open borders free [ __ ] trade deal it was just an idea well that's that's 
a biggie just to throw in at the their world   for all its luxurious fitions is cold empty 
and real lessly Petty and so are they Rich's   kaida makes them so compelling you proposed to 
me you proposed to me in my lowest [ __ ] E my   dad was dying what was I supposed to say perhaps 
no I didn't want to hurt your feelings oh thanks   thanks for that yeah you really kept me safe 
while you ran off to [ __ ] the phone book we   can to see the broken Humanity that they have 
tried to paint over in Golden Leaf the parts of   him that are desper for acceptance terrified of 
failure and haunted by childhood demons and this   is actually pretty fitting while a lot of us 
might acquaint massive wealth with happiness   a number of studies suggest things are more 
complicated there's conflicting data but one   influential study actually found that money stops 
quote unquote buying happiness once you reached a   $75,000 salary what's more a striking number of 
billionaires become clinically depressed upon   hitting a big some researchers think that this is 
because material wealth can isolate you from other   people leading you to Value Independence 
over human connection and that's possibly   because only lots of fancy makes you feel more 
competitive with those around you it this kind   of isolation and lack of human connection 
is Right throughout succession we see it   in the jumpy dislocated camera moves and sterile 
environment and in the way the characters treat   each other when a recently sord of kidnapped 
Roman TR has to share his feelings with the   siblings he is roundly mocked for showing even 
a trace of vulnerability our feelings how am I   the mature one here we don't have any feelings 
what are you talking about in this way rather   than gawking at their Ladish Lifestyles or 
brilliant power moves the show reveals the   character's deeply damaged course their pettiness 
their jealousy their constant self- sabotage and   there's nothing pornographic about it however much 
we enjoy watching them screw each other like to be   married to a man with two [ __ ] if I was to give 
Tom a letter grade i' give him a B+ for Bad Plus terrible that was all [ __ ] me they hit me from 
every [ __ ] sign it's okay Tom you did good oh   I didn't get enough resour spend on me okay what 
the [ __ ] is going on I'm getting I was [ __ ]   from every direction are you [ __ ] me shiv Tom 
huh I'm the psy I'm the meat and the sandwich as   Jerry is a Bulletproof Monk Kendall Lan in reserve 
I'm the meat and the [ __ ] sandwich Cal down oh   [ __ ] fu oh [ __ ] oh [ __ ] oh [ __ ] okay 
oh [ __ ] guys everything is fine nothing bad   is happening here oh man oh my God [ __ ] man 
I just turned down a quarter of a billion and   now I'm going to jail forever cuz of this [ __ ] 
guy man this [ __ ] you outside out [ __ ] side now unbelievable [Music] Jess we keep an eye on you okay it's all right what a 
[ __ ] show what a [ __ ] [ __ ] show

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Income and Wealth Inequality: Crash Course Economics #17

Jacob: Welcome to Crash Course Economics,
I'm Jacob Clifford… Adriene: …and I'm Adriene Hill. The world
is full of inequality. There's racial inequality, gender inequality, health, education, political
inequality, and of course, economic inequality. Some people are rich, and some people are
poor, and it can seem pretty impossible to fix. Jacob: Well, maybe not. [Theme Music] Jacob: So there are two main types of economic
inequality: wealth inequality and income inequality. Wealth is accumulated assets, minus liabilities
so it's the value of stuff like savings, pensions, real estate, and stocks. When we talk about
wealth inequality, we're basically talking about how assets are distributed. Income is
the new earnings that are constantly being added to that pile of wealth.

So when we talk
about income inequality, we're talking about how that new stuff is getting distributed. Point is,
they're not the same. Let's go to the Thought Bubble. Adriene: Let's look at both types of inequality
at the global level. Global wealth today is estimated at about 260 trillion dollars, and
is not distributed equally. One study shows that North America and Europe, while they
have less than 20% of the world's population, have 67% of the world's wealth. China, which
has more people than North America and Europe combined, has only about 8% of the wealth.
India and Africa together make up almost 30% of the population, but only share about 2%
of the world's wealth.

We're teaching economics, so we can focus on income inequality. These
ten people represent everyone on the planet, and they're lined up according to income.
Poorest over here and richest over here. This group represents the poorest 20%, this is
the second poorest 20%, the middle 20%, and so on. If we distributed a hundred dollars
based on current income trends, this group would get about 83 of those dollars, the next
richest would get 10 dollars, the middle gets four, the second poorest group would get two dollars
and the poorest 20% of humans would get one dollar. Branko Milanovic, an economist that specializes
in inequality, explained all this by describing an "economic big bang" – "At first, countries'
incomes were all bunched together, but with the Industrial Revolution the differences
exploded. It pushed some countries forward onto the path to higher incomes while others
stayed where they had been for millennia." According to Milanovic, in 1820, the richest
countries in the world – Great Britain and the Netherlands – were only three times richer
than the poorest, like India and China. Today, the gap between the richest and poorest nations is like
100:1. The gaps are getting bigger and bigger.

Thanks, Thought Bubble. The Industrial Revolution
created a lot of inequality between countries but today globalization and international trade are accelerating it.
Most economists agree that globalization has helped the world's poorest people, but it's
also helped the rich a lot more. Harvard economist Richard Freeman noted, "The triumph of globalization
and market capitalism has improved living standards for billions while concentrating
billions among the few." So, it's kind of a mixed bag. The very poor are doing a little better, but
the very rich are now a lot richer than everybody else. There are other reasons inequality is growing.
Economists point to something called "skill-biased technological change." The jobs created in
modernized economies are more technology-based, generally requiring new skills. Workers that
have the education and skills to do those jobs thrive, while others are left behind.
So, in a way, technology's become a complement for skilled workers but a replacement for
many unskilled workers.

The end result is an ever widening gap between not just the
poor and the rich, but also the poor and the working class. As economies develop and as
manufacturing jobs move overseas, low skill low pay and high skill high pay work are the
only jobs left. People with few skills fall behind in terms of income. In the last thirty
years in the US, the number of college-educated people living in poverty has doubled from
3% to 6%, which is bad! And then consider that during the same period of time, the number
of people living in poverty with a high school degree has risen from 6% to a whopping 22%.
Over the last fifty years, the salary of college graduates has continued to grow while, after
adjusting for inflation, high school graduates' incomes have actually dropped. It's a good
reason to stay in school! There are other reasons the income gap is
widening.

The reduced influence of unions, tax policies that favor the wealthy, and the
fact that somehow it's okay for CEOs to make salaries many, many times greater than those
of their employees. Also, race and gender and other forms of inequality can exacerbate
income equality. Jacob: Let's dive into the data for the United
States. We'll start by mentioning Max Lorenz, who created a graph to show income inequality.
Along the bottom we have the percent of households from 0-100% and along the side we have the
percent share of income.

By the way, we're using households rather than just looking
at individuals because many households have two income earners. So this straight line
right here represents perfect income equality. So every household earns the same income.
And while perfect income equality might look nice on the surface, it's not really the goal.
When different jobs have different incomes, people have incentive to become a doctor or
an entrepreneur or a YouTube star – you know, the jobs society really values. So this graph, called
the Lorenz curve, helps visualize the depth of inequality. Now, for 2010, the US Census Bureau found
that the poorest 20% of Americans made 3.3% of the income. And the richest 20% made over
50% of the income. So that's pretty unequal but has it always been like this? Well, in
1970, the bottom group earned 4.1% of the income and the top earned 43.3%.

By 1990,
things were even less equal so the 2010 numbers are just a continuation of the trend. And
it isn't just the poorest group that's losing ground. Over those 40 years, each of the bottom
groups or 80% households earned smaller and smaller shares of the total income. Now, from the Lorenz curve we can calculate
the most commonly used measure of income equality – the GINI Index. Now without jumping into
too much of the math, it's basically the size of the gap between the equal distribution
of income and the actual distribution. Now, 0 represents complete equality and 100 represents
complete inequality. Now, you might be surprised to learn the US doesn't have the highest income
inequality, but it does have the highest among Western industrialized nations.

The UK has
the highest in the EU. Adriene: The debate over income equality isn't
about whether it exists. It obviously does. The fight is over whether it's a problem and
what should be done about it. Let's start with those who don't think it's a big deal.
They tell you that the data suggests that the rich are getting richer and the poor are
getting poorer, but that might not be the case. Instead, it could be that all the groups
are making more money but the rich's share is just growing faster. Like, let's say you
own an apple tree and we pick 10 apples. You keep 6 and give me 4. A week later we pick
20 apples, you take 15 and give me 5. So my share of the total went down from 40% to 25%
but each of us still got more apples.

So it's true that people in the lowest income bracket have
earned a little more money in the last 40 years, but in the last 20 years, that average income has been falling.
Meanwhile, the rich have continually gotten richer. So, what's the richest guy on earth have to
say about it? Bill Gates said, "Yes, some level of inequality is built in to capitalism.
It's inherent to the system. The question is, what level of inequality is acceptable?
And when does inequality start doing more harm than good?" There's a growing group of
economists who believe income inequality in the US today is doing more harm.

They argue
that greater income inequality is associated with a lot of problems. They point to studies
that show countries with more inequality have more violence, drug abuse and incarcerations.
Income inequality also dilutes political equality, since the rich have a disproportionate say
in what policies move forward, and the rich have an incentive to promote policies that
benefit the rich. So, how do we address this inequality? There's
not a lot of agreement on this. Some argue that education is the key to reducing the
gap. Basically, workers with more and better education tend to have the skills that earn
higher income. Some economists push for an increased minimum wage, which we're going
to talk about in another episode. There's even an argument that access to affordable,
high quality childcare would go a long way. And some think governments should do more
to provide a social safety net, focus on getting more people to work and adjust the tax code
to redistribute income.

Jacob: Some economists call for the government
to increase income taxes and capital gains taxes on the rich. Income taxes in the US
are already somewhat progressive, which means that there are tax brackets that require the
rich to pay a higher percent of income. Right now, it peaks at around 40% but some economists
call for increases up to 50 or 60%. One idea is to fix loopholes that the rich use to avoid
paying taxes. Other economists argue that taxing the rich won't be as effective as reducing regulation
and bureaucratic red tape. It's unclear which path we're going to take but extreme income inequality
at the national and global level needs to be addressed. Motivation to improve income inequality may come
from a genuine desire to help people and level the playing field, or the fear of Hunger Games-style social
upheaval. But either way, the issue can't be ignored. Adriene: Even Adam Smith, the most classical
of classical economists, said, "No society can surely be flourishing and happy of which
the far greater part of the members are poor and miserable." Thanks for watching, we'll
see you next week.

Jacob: Thanks for watching Crash Course Economics.
It was made with the help of all of these nice people. You can help keep Crash Course
free for everyone forever by supporting the show at Patreon. Patreon is a voluntary subscription
service where you can support the show with monthly contributions. We'd like to thank
our High Chancellor of Learning, Dr. Brett Henderson and our Headmaster of Learning,
Linnea Boyev, and Crash Course Vice Principal Cathy and Kim Philip. Thanks for watching,
DFTBA..

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2 Laws for Generating Wealth

Any successful plan to generate and sustain
sufficient wealth must incorporate two very basic rules: 1) Generate Investible Savings. The first step to unlock the path to building
tremendous wealth is not about investing at all. It is about generating Investable assets. For most people this begins by terminating
any expensive debt such as credit card or high interest debt. The reason being that expensive debt increases
one’s expenses and eats into investable resources. Second step for most people is redefining
certain parts of their remaining income as compulsory payments that must be done. That payment is, in fact, the first step of
savings for investing. The third step for most people is to invest
time and entrepreneurial energy to increase their gross income. Getting a better job, a promotion, a new skill
or starting a business that can generate profits disconnected from your immediate personal
labor resources. The fourth step would be establishing some
kind of an emergency fund and getting sufficient insurance to cover yourself against unpredicted
expenses. When the four steps are done, you can start
generating sufficient investable assets that can be put to work growing over a minimal
period of five years.

When this is done, you can proceed to the
next rule. 2) Invest investable savings into exponentially
growing assets, growing for many years while limiting the taxes you pay. Once you generate investable assets and are
ready to put them to work, comes the next tough question: Where should I deploy my investable
assets to maximize my investment and to generate more wealth? You should know that any and all investable
assets you will ever encounter can belong to one or another of these two categories:
Exponentially Growing Assets or Regular Growth Assets.

If you ever hope to generate sufficient wealth
from your investable assets, you must learn how to separate your exponential growing assets
from your regular growth assets and then make sure you are sufficiently exposed to the exponentially
growing asset class. Exponentially growing assets are a rare creature
few understand, even among seasoned investors. There is a set of strict rules to become eligible
for the coveted title: A) At their very core, they must yield very
high returns on internally invested resources and expenses – such as inventory, labor, plant
& factory or R&D; What sets exponentially growing assets apart
from any and all investable assets is their ability to make a large profit on a small
base of required resources. The more expenses and investments one needs
to make a profit, the less profit is left to increase the value of the asset itself. B) They must have sufficiently large market opportunities
ahead of them to enable many years of sales growth displaying high returns on invested
resources; While many possible assets can generate high
rate of return, exponentially growing assets are not a one-off occurrence or limited activity
and must be able to maintain their course of growth over many years to build sufficient
appreciation for their owners.

C) They must provide extensive internal reinvestment
opportunities to use profits at similarly high returns To really become an exponentially growing
asset capable of building imaginary amounts of wealth, the asset must provide managers
the ability to use the rivers of cash generated regularly from the asset in a similar high
rate of return. When these criteria aren’t met, owners soon
realize the resulting rivers of profits do not grow at a high rate and the growth in
wealth soon slows down due to the ever-growing profits invested in lower rate growing assets.

D) They must be led by honest, high integrity,
talented managers, who are actually risking their own wealth alongside their investors. For these executives, a small increase in
the share price will generate much greater wealth than any increase to their paycheck. Executives of public companies have the ability
to loot the company’s coffers or engage in wealth destruction in an infinity of ways. To avoid that, check to see how large your
CEO’s stake in the company stock is before choosing any investment.

As long as the company still embodies the
4 rules that we covered here, you stay invested; this is the one last requirement when investing
in exponentially growing assets. ALL exponentially growing assets see their
stock price cut in half several times during the decades, usually due to different parameters
that don’t reflect the actual company value. Holding these assets through turbulences,
and even adding to them, requires temperament and familiar understanding of the business,
which results in the conviction to stay the course..

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