The 1% Club: What It Takes To Be Rich In The Lucky Country
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The 1% Club: What It Takes To Be Rich In The Lucky Country

The definition of a high net worth individual in Australia has shifted

By Nina Hendy
Wed, Nov 1, 2023 10:32amGrey Clock 4 min

The pathway to growing wealth in Australia is changing, with new research revealing that the amount of money you need behind you to be in the top one percent of wealthiest people in Australia has doubled over the past two years.

While many households across the country are battling the rising cost of living pressures, it has been revealed that 2.2 million Australians have amassed at least $8 million in money and assets, up from $4 million in 2021. This status places them in the list of the nation’s High Net Wealth Individuals.

The data, revealed in this year’s Knight Frank’s Wealth Report, gives anyone interested in wealth fascinating insights into just how much money it takes to reach the one percent threshold across the world. The report reveals that Australia now ranks as third for the money required to be in the top one percent, up from seventh in 2021,

sitting behind Monaco in top place and then Switzerland.

In Monaco, it takes $18.1 million to be considered rich, but bear in mind that the nation has long been considered a tax haven, with residents avoiding income and capital gains taxes.

Finance experts are adamant that the fundamentals that help you get rich haven’t changed — the wealthy purchase property, pay down their debt, stick to a budget and utilise the tax offsets that exist within the nation’s superannuation system to build their wealth.

Sounds simple enough, but amid a cost of living crisis, it’s not quite so straightforward.

The power of money

Rachael Evans entered the realm of HNWIs a few years ago, admitting that she takes a structured approach to building and managing her wealth.

Money isn’t just a functional, tangible thing. There’s energy associated with it, she says.

“The first thing that you have to get your head around is that money wants structure, so if you don’t have rules that govern your money, it will not stay with you, no matter how much you earn,” she says.

The CEO of four-day work week consultancy, 4 Days 4 All, and business coach always pays herself first as the owner of her business, and then allocates what’s left over back to the business.

“Most business owners do it the other way around, which leaves owners with a very small portion left over, if anything,” Evans says.

Evans and her husband aim to be debt free by the time they reach 55 years of age, and have reverse engineered their finances based on that to allocate what’s needed to pay off her investment properties.

She has a team of experts

< to help her achieve that goal. “What’s changed over the past five years is the value that I place on the people we hire to advise us, such

as our property adviser, financial adviser and our accountant. There’s far too many financial advisers out there advising others on how to handle their money based on theory because they don’t actually have any skin in the game.”

Investing in herself is also critical, so she sets aside up to 10 percent
of her annual revenue in business- related coaching for herself and her team.

Millionaire status

Melbourne businessman Ryan Watson has reached the HNW status. The founder of financial advice firm Tribeca Financial admits that it dawned on him that he had reached a financial milestone that he considered to place him among other wealthy Australians about four years ago. He’s since stepped down to working four days a week and likes to spend his money on buying experiences, like travelling with family when he can.

The business has nearly 1,000 clients and has an annual turnover in excess of $5 million. Being in a position to build the financial literacy of his clients spurs him on.

“I have been able to build my personal wealth from receiving a small inheritance in 2002 to today where I’m now worth 8 figures,” he says.

A key plank in wealth-building has been his focus on diversifying his investments. He’s also not risk averse, buying shares in lithium companies nine years ago.

“It’s certainly not been an overnight success, the shares have gone up and down over the years, but with the advent of electric cars, they make a lot of sense at the moment,” Watson says.

The forced discipline of structuring his finances so that he’s always paying something off also appeals to him. Right now, he and his wife pour a minimum off 33 per cent of their income into paying off their principal residence.

“The responsibility and commitment of paying back debt works well for us,” he says.

Rich getting richer

The mega-rich are also getting richer. People with a net worth of more than $43.8 million is a category of wealth expected to grow by 40.9 percent over the next five years from 17,456 in 2022 to 24,589 in 2027. That’s almost 3,000 additional UHNWIs than the 31.1 percent growth over the past five years.

A large contributor to the top one percent wealth doubling in Australia over the past two years has been prime residential property performance recording an upward trajectory, resilient despite the rising cost of finance, with half of this cohort tending to be cash buyers.

“The level of wealth required to reach the wealthiest one percent varies extensively, depending on where you live in the world, but it has risen across the board … reflecting the growth in wealth portfolios over the past two years, despite the dip in 2022,” Knight Frank’s head of residential research Australia, Michelle Ciesielski says.

“We can’t underestimate how much the pandemic brought forward decision making, rebalancing of portfolios and re- evaluating how much time is spent in Australia going forward, given many spent longer periods of time grounded at home than they had over the past decade,” she says.

“On average, the UHNWI population in Australia owns 2.9 homes, or equivalent to 36 per cent of their total wealth is in primary and secondary homes.

“For their investible wealth, 94 percent of their portfolios tend to be held in Australia, 34 percent is in some form of commercial property ownership, while 21 per cent is in equities.”



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The Uglification of Everything

Artistic culture has taken a repulsive turn. It speaks of a society that hates itself, and hates life.

By Peggy Noonan
Fri, Apr 26, 2024 5 min

I wish to protest the current ugliness. I see it as a continuing trend, “the uglification of everything.” It is coming out of our culture with picked-up speed, and from many media silos, and I don’t like it.

You remember the 1999 movie “The Talented Mr. Ripley,” from the Patricia Highsmith novel. It was fabulous—mysteries, murders, a sociopath scheming his way among high-class expats on the Italian Riviera. The laid-back glamour of Jude Law, the Grace Kelly-ness of Gwyneth Paltrow, who looks like a Vogue magazine cover decided to take a stroll through the streets of 1950s Venice, the truly brilliant acting of Matt Damon, who is so well-liked by audiences I’m not sure we notice anymore what a great actor he is. The director, Anthony Minghella, deliberately showed you pretty shiny things while taking you on a journey to a heart of darkness.

There’s a new version, a streaming series from Netflix, called “Ripley.” I turned to it eagerly and watched with puzzlement. It is unrelievedly ugly. Grimy, gloomy, grim. Tom Ripley is now charmless, a pale and watchful slug slithering through ancient rooms. He isn’t bright, eager, endearing, only predatory. No one would want to know him! Which makes the story make no sense. Again, Ripley is a sociopath, but few could tell because he seemed so sweet and easy. In the original movie, Philip Seymour Hoffman has an unforgettable turn as a jazz-loving, prep-schooled, in-crowd snob. In this version that character is mirthless, genderless, hidden. No one would want to know him either. Marge, the Paltrow role in the movie, is ponderous and plain, like a lost 1970s hippie, which undercuts a small part of the tragedy: Why is the lovely woman so in love with a careless idler who loves no one?

The ugliness seemed a deliberate artistic decision, as did the air of constant menace, as if we all know life is never nice.

I go to the No. 1 program on Netflix this week, “Baby Reindeer.” People speak highly of it. It’s about a stalker and is based on a true story, but she’s stalking a comic so this might be fun. Oh dear, no. It is again unrelievedly bleak. Life is low, plain and homely. No one is ever nice or kind; all human conversation is opaque and halting; work colleagues are cruel and loud. Everyone is emotionally incapable and dumb. No one laughs except for the morbidly obese stalker, who cackles madly. The only attractive person is the transgender girlfriend, who has a pretty smile and smiles a lot, but cries a lot too and is vengeful.

Good drama always makes you think. I thought: Do I want to continue living?

I go to the Daily Mail website, once my guilty pleasure. High jinks of the rich and famous, randy royals, fast cars and movie stars, models and rock stars caught in the drug bust. It was great! But it seems to have taken a turn and is more about crime, grime, human sadness and degradation—child abuse, mothers drowning their babies, “Man murders family, self.” It is less a portal into life’s mindless, undeserved beauty, than a testimony to its horrors.

I go to the new “Cabaret.” Who doesn’t love “Cabaret”? It is dark, witty, painful, glamorous. The music and lyrics have stood the test of time. The story’s backdrop: The soft decadence of Weimar is being replaced by the hard decadence of Nazism.

It is Kander and Ebb’s masterpiece, revived again and again. And this revival is hideous. It is ugly, bizarre, inartistic, fundamentally stupid. Also obscene but in a purposeless way, without meaning.

I had the distinct feeling the producers take their audience to be distracted dopamine addicts with fractured attention spans and no ability to follow a story. They also seemed to have no faith in the story itself, so they went with endless pyrotechnics. This is “Cabaret” for the empty-headed. Everyone screams. The songs are slowed, because you might need a moment to take it in. Almost everyone on stage is weirdly hunched, like a gargoyle, everyone overacts, and all of it is without art.

On the way in, staffers put stickers on the cameras of your phone, “to protect our intellectual property,” as one said.

It isn’t an easy job to make the widely admired Eddie Redmayne unappealing, but by God they did it. As he’s a producer I guess he did it, too. He takes the stage as the Emcee in a purple leather skirt with a small green cone on his head and appears further on as a clown with a machine gun and a weird goth devil. It is all so childish, so plonkingly empty.

Here is something sad about modern artists: They are held back by a lack of limits.

Bob Fosse, the director of the classic 1972 movie version, got to push against society’s limits and Broadway’s and Hollywood’s prohibitions. He pushed hard against what was pushing him, which caused friction; in the heat of that came art. Directors and writers now have nothing to push against because there are no rules or cultural prohibitions, so there’s no friction, everything is left cold, and the art turns in on itself and becomes merely weird.

Fosse famously loved women. No one loves women in this show. When we meet Sally Bowles, in the kind of dress a little girl might put on a doll, with heavy leather boots and harsh, garish makeup, the character doesn’t flirt, doesn’t seduce or charm. She barks and screams, angrily.

Really it is harrowing. At one point Mr. Redmayne dances with a toilet plunger, and a loaf of Italian bread is inserted and removed from his anal cavity. I mentioned this to my friend, who asked if I saw the dancer in the corner masturbating with a copy of what appeared to be “Mein Kampf.”

That’s what I call intellectual property!

In previous iterations the Kit Kat Club was a hypocrisy-free zone, a place of no boundaries, until the bad guys came and it wasn’t. I’m sure the director and producers met in the planning stage and used words like “breakthrough” and “a ‘Cabaret’ for today,” and “we don’t hide the coming cruelty.” But they do hide it by making everything, beginning to end, lifeless and grotesque. No innocence is traduced because no innocence exists.

How could a show be so frantic and outlandish and still be so tedious? It’s almost an achievement.

And for all that there is something smug about it, as if they’re looking down from some great, unearned height.

I left thinking, as I often do now on seeing something made ugly: This is what purgatory is going to be like. And then, no, this is what hell is going to be like—the cackling stalker, the pale sociopath, Eddie Redmayne dancing with a plunger.

Why does it all bother me?

Because even though it isn’t new, uglification is rising and spreading as an artistic attitude, and it can’t be good for us. Because it speaks of self-hatred, and a society that hates itself, and hates life, won’t last. Because it gives those who are young nothing to love and feel soft about. Because we need beauty to keep our morale up.

Because life isn’t merde, in spite of what our entertainment geniuses say.

 

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