A recent survey revealed that the average age of U.S. investors with net assets of $25m or more is a mere 47 years old. Approximately 172k of US households classify for this $25m or more wealth distinction, more than doubling from the 84k households in 2008.
So who are these outrageously rich, young Americans and just how did they get so wealthy?
It seems they owe as much to the luck of their birth as they do to actual accomplishments. 9 in 10 investors in the Spectrum survey attributed their success to “family connections” and “inheritance” – with Bloomberg pointing out we have more Paris Hiltons than Mark Zuckerbergs comprising this new echelon of extreme wealth.
With the great generational transfer of wealth just beginning and wealth disparity getting even more pronounced, we will likely see more calls like AOC’s (Alexandria Ocasio-Cortez) 70% US marginal tax rate on income over $10m.
Moreover, the super wealthy are preparing their children for retaining their amassed fortunes. Young Investor Programs (YIP) held by Credit Suisse, UBS, and Citi Private Bank include workshops on financial theory and estate planning, Shark Tank style startup pitch sessions, and networking breakouts with freshly baked doughnuts and a La Colombe draft latte machine.
For those lucky enough to be born loaded, “Rich Camp” has replaced the horrors of “Fat Camp” from the ‘90s…
MoneyLion to sponsor Talladega XFINITY race - Talladega Superspeedway has announced that MoneyLion, America's most powerful financial membership, has partnered with the iconic 2.66 mile venue and will serve as the entitlement sponsor of the MoneyLion 300 XFinity Series event on Saturday, April 27th. Read more
Crazy, Rich Americans
Super rich Americans are getting younger and multiplying - Bloomberg believes technology and VC has created far greater numbers of billionaires and multi-millionaires, with IPOs or rich funding rounds minting wealth overnight - whereas the super-wealthy of the past had to accumulate riches by building up empires over decades. Read more
Banks woo billionaire heirs with insider peek at Silicon Valley - With 93 of the 500 richest people in the world aged at least 80 years old, money managers are pulling out all the stops to hold their ultra-wealthy clients close. Bloomberg unpacks how young, soon-to-be billionaires, get an exclusive look at emerging tech and access to industry insiders. Read more
Alexandria Ocasio-Cortez's 70% tax plan: what all Americans need to know - Motley Fool reviews AOC's plan for the highest earners in the US. Read more
Square & Twitter CEO Jack Dorsey - the Rolling Stone interview - Q: By all accounts, Square runs more smoothly than Twitter? A: "It has to, though. Yeah, you’re dealing with people’s money. I mean, it’s extremely emotional. If you lose 140 characters, people are like, “Eh.” If you lose $140 or even $1.40, it’s important. Read more
New pan-Asia body to help regional fintech players grow - 60 financial institutions from 12 countries and regions have joined the Fintech Cooperation Committee, a new pan-Asia network bringing together Asian fintech start-ups, financial institutions and banks to trade knowledge and expertise. Read more
Fiserv to acquire First Data in $22b all-stock deal - Fiserv has struck a deal to buy First Data for $22 billion, combining two companies that, though largely unknown to consumers, provide much of the financial technology that connects Wall Street to Main Street. Read more
The latest trend in mobile gaming: stock-trading apps - Apps such as Robinhood and Webull are drawing in young and often inexperienced investors and ‘bringing the ability to make foolish decisions to an ever-broader swath of people.’ Read more
The ghost UK companies connected to suspected money laundering, corruption, and Paul Manafort - The network of more than 100 firms shows that despite promises by successive British prime ministers to crack down on financial crime and corruption, UK authorities are still failing to stop suspected money launderers from pumping millions of pounds through the Western financial system. Read more
Mastercard outbids Visa for tiny firm in $30tn sector - The 21-year-old firm isn’t a startup, and despite its name it isn’t playing in the private space travel game. Earthport is a cross-border payments network. It uses a cloud-based setup to help banks and financial firms transmit payments for their own customers as an alternative to Swift. Read more
Galaxy Digital raising $250m for credit fund - The crypto merchant bank launched by former hedge fund manager Michael Novogratz is raising the money to provide loans to struggling crypto firms, with the credit looking to be backed by crypto tokens or crypto mining devices and property. Read more
Goldman, Citi drop online lender IPOs amid China crackdown - The rare show of concern by major investment banks highlights the loss of confidence by investors and regulators in what used to be one of China's hottest sectors, growing to over $200b of annual originations from almost nothing in 2012. Read more
Cryptocurrency firm Robinhood wins New York trading license - The approval will allow the commission-free startup to trade in seven cryptocurrencies, including bitcoin, ether, bitcoin cash and litecoin. Read more
Albo - Mexico based neobank has raised a $7.4m Series A led by Mountain Nazca. Read more
Apruve - Minneapolis based invoice financing platform has raised a $6m Series A led by Cloud Apps Capital Partners. Read more
Bread - Mobile cryptocurrency wallet BRD is announcing that it has raised $15m in Series B funding from SBI Crypto Investment, a subsidiary of Japanese financial services company SBI Holdings. Read more
Geophy - Netherlands-based AI-powered real estate valuation platform has raised $33m in Series B funding led by Index Ventures. Read more
Mooncard - French startup Mooncard, who provide a service to track and manage your company’s expenses with the help of good old plastic cards, has raised $5.7m from Raise Ventures and Aglaé Ventures. Read more
Nutmeg - UK based robo advisor has raised £45m in venture financing led by Goldman Sachs. Read more
Uplift - Silicon Valley based point-of-sale lender for travel has raised a $123m Series C led by Madrone Capital Partners. Read more
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