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<ul class="summary-list"><li>Four therapists shared what their clients from different tax brackets discuss in sessions.</li><li>Money can be a source of stress for both those on lower incomes as well as the <keyword id="20766455" type="General" weightage="20" keywordseo="ultra-rich" source="keywords">ultra-rich</keyword>. </li></ul>We may think getting that big promotion with a hefty pay rise would solve all our problems, but would it? As Business Insider learned from interviewing therapists with clients across the socioeconomic spectrum —from <a target="_blank" class="" href="https://www.businessinsider.com/alices-dinks-henrys-fires-economy-guide-2024-6">ALICEs to HENRYs</a> and beyond — while it's easy to see why having a low income can cause stress — particularly with <a target="_blank" class="" href="https://www.businessinsider.com/wealth-inequality-so-bad-will-take-230-years-end-poverty-2024-1">growing wealth inequality</a> — rich people have their own worries. So what are people across the tax brackets discussing with their therapists? <h2>People on low incomes</h2>Anna Nathanson, a licensed clinical social worker and therapist based in New York, runs a website called Low-Cost Therapy NYC. She said that "financial instability really eats at people's souls." It affects not only people's physical well-being but also their interpersonal relationships and self-worth, which is linked to money for many. Clients might talk about <a target="_blank" href="https://www.businessinsider.com/personal-finance/rules-spender-saver-relationship-build-wealth-2021-9">arguing about money with their partner</a>, job hunting, having to rely on friends for childcare, or how their income affects their self-esteem, Nathanson said. She has also helped patients work through chronic trauma responses, such as depression or nightmares, that they have developed from repeatedly not having their basic needs met. <div type="image" title="A couple sat, arguing." height="1414" width="2121" msid="114215104" hostid="261"></div>Dr. Ashley Castro, a New York-based clinical psychologist who started Healwise, an affordable and accessible therapy nonprofit, said: "Poverty brings with it so many different kinds of stress." She added: "There is a lot that's out of their control that can be difficult emotionally. It's just a reality that life can be tough if you don't have a lot of money." <h2><keyword id="23623471" type="General" weightage="20" keywordseo="ALICEs" source="keywords">ALICEs</keyword></h2><a target="_blank" href="https://www.businessinsider.com/alice-living-paycheck-to-paycheck-without-government-assistance-snap-medicaid-2024-5">ALICEs</a> (Asset Limited, Income Constrained, Employed) are people who earn enough to sit above the federal poverty line but struggle with the cost of living. <div type="image" title="A birds-eye view of a woman typing on a calculator and looking at her bills" height="1414" width="2121" msid="114215097" hostid="261"></div>Traci Williams, a psychologist and certified financial therapist in Atlanta, said that people with little money can end up overspending and getting into debt because they might be "trying to live a life that they desire for themselves that they cannot yet afford." On the other hand, people who have become ALICEs — for instance those who have lost wealth or grew up in financially stable homes butdon't make as much as their parents — may develop <a target="_blank" href="https://www.businessinsider.com/personal-finance/money-anxiety-scarcity-mindset-generational-trauma-2022-6">scarcity mindsets</a>, Williams said. As such, while some ALICEs will discuss in therapy their need to hoard money others talk about wanting to "live it up" and spend recklessly when they are able, she said. <h2>HIFIs</h2><a target="_blank" href="https://www.businessinsider.com/americans-feel-financially-insecure-wont-stop-luxury-shopping-millennials-genz-2024-5">HIFIs</a> (<keyword id="23623474" type="General" weightage="20" keywordseo="high-income" source="keywords">High Income</keyword>, Financially Insecure) earn a high salary, but spend so much they end up living paycheck to paycheck. Just over half of people who make $100,000 or more live paycheck to paycheck, a 2023 report by PYMNTS, a data-analytics company, and LendingClub, a financial-services company, found. <div type="image" title="A woman in a green jumper, looking out a window and away from her phone." height="1086" width="1629" msid="114215098" hostid="261"></div>"That is not because they don't have enough, but it's often because they are overspending or not financially aware," Williams said. This may be due to the <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-causes-inflation">increased cost of living</a>, which has contributed to many people's <keyword id="22941859" type="General" weightage="20" keywordseo="financial-insecurity" source="keywords">financial insecurity</keyword>, she said. Many of Williams' clients say they also feel pressured to spend above their means in order to keep up with the lifestyles of their peers that they see on social media. <h2><keyword id="23623470" type="General" weightage="20" keywordseo="HENRYs" source="keywords">HENRYs</keyword></h2>Some <a target="_blank" href="https://www.businessinsider.com/henry-student-loans-six-figure-income-millennial-gen-z-retirement-2023-11">HENRYs</a> (High Earners, Not Rich Yet) might seem wealthy to others, but still worry about having enough money, Williams said, because "it's all relative." She gave the example of higher-earning clients who <a target="_blank" href="https://www.businessinsider.com/personal-finance/investing/how-to-invest-in-stocks">invest in stocks</a> and worry markets could crash at any time, despite that being unlikely. <div type="image" title="A stressed men looking a stock market graph on a laptop." height="1414" width="2121" msid="114215100" hostid="261"></div>HENRYs who didn't grow up with much money might tell Nathanson that they feel guilty being wealthy, she said. They might also talk about feeling uncomfortable receiving gifts because they don't feel deserving, she said. Or they may feel the reverse and have an unnecessary scarcity mindset. Such people often talk to Nathanson in therapy about feeling "really <a target="_blank" href="https://www.businessinsider.com/young-people-are-developing-money-dysmorphia-2024-7">nervous about spending</a> anything and feeling like they can't indulge in any way." Two HENRYs in a couple, meanwhile, might want to discuss tension in their relationship if they have different ways of thinking about shared wealth, she said. <h2>Ultra-high net worth individuals</h2>"The stereotype is that rich people problems aren't real problems, that they're just in therapy talking about really inconsequential trivial things," Castro said. "But my patients have real issues and they genuinely struggle." Dr. Paul L. Hokemeyer, a licensed marriage and family therapist and clinical consultant to <a target="_blank" href="https://www.businessinsider.com/what-ultra-high-net-worth-investors-are-buying-family-office-2024-6">ultra-high net-worth people</a>, based in Colorado, agreed with Castro. "At the core, people of wealth suffer from the same mental health and relational issues as the rest of humanity," he said. <div type="image" title="A man and woman sit far apart in a fancy apartment." height="1414" width="2121" msid="114215106" hostid="261"></div>For example, Hokemeyer helps people who feel "objectified" and "vilified" because of their wealth; who feel pressure to use it in productive ways; and who deal with the "highly stressful and chaotic" process of starting a business. Well-off children and teens, meanwhile, must often deal with the expectation that they will get into <a target="_blank" class="" href="https://www.businessinsider.com/extreme-moves-gifts-parents-use-get-kids-into-prestigious-preschools-2020-6">elite educational institutions</a> with intense workloads, Castro said. The pressure to achieve can cause problems with perfectionism and anxiety disorders, as well as depression from a lack of downtime and fun. Williams said that she sees a lot of guilt and hopelessness in her wealthier clients, because they realize they can't make as big a difference in the world as they would like to. And, as people live longer, she said that some worry about not having enough money to sustain their lifestylesas they get older. Wealth can also cause issues within families, she said, with disagreements over wills, estates, and spending on vacations. According to Hokemeyer, "wealth can be both a blessing and a curse," but, at the end of the day, "emotions are emotions, pain is pain." Correction: October 16, 2024 — An earlier version of this story misspelled the first name of a psychologist and financial therapist in Atlanta. Her name is Traci Williams, not Tracy. An earlier version also misstated the name of a financial-services company. It’s LendingClub, not LendingCompany.

From ALICEs to HENRYs, here's what people across the tax brackets discuss in therapy

<keyword id="19895063" type="General" weightage="100" keywordseo="India" source="keywords">India</keyword> is well positioned to be a driver of greater wealth, according to a <keyword id="22444977" type="General" weightage="20" keywordseo="global-wealth" source="keywords">global wealth</keyword> report by <keyword id="19896306" type="General" weightage="20" keywordseo="Boston-Consulting-Group" source="keywords" meta.keywordsubtype="org" meta.entityname="Boston Consulting Group" meta.hostid="153" meta.entityid="Boston Consulting Group">Boston Consulting Group</keyword> (BCG). In 2023, India generated roughly $590 billion in new <keyword id="22367734" type="General" weightage="20" keywordseo="financial-wealth" source="keywords">financial wealth</keyword>, marking its largest increase in the history. India will add about $730 billion annually to the overall growth of the region through 2028. The report says <keyword id="19894886" type="General" weightage="20" keywordseo="China" source="keywords">China</keyword> and India are positioned to drive global <keyword id="20231223" type="General" weightage="20" keywordseo="wealth-creation" source="keywords">wealth creation</keyword>, "Notably, China and India are positioned to drive wealth creation, having collectively generated $588 billion in financial wealth in 2023. India is expected to add about $730 billion annually to the overall growth by 2028," said Yashraj Erande, India Leader Financial Services, BCG. Financial wealth in the Asia-Pacific region grew by only 5.1% in 2023, predominantly due to a slowdown in wealth creation in China. However, the report anticipates a significant increase through 2028, with the Asian region likely to contribute nearly 30% of new financial wealth by 2028. The report also observed that global net wealth registered a growth of 4.3% in 2023, following a decline of 4% in 2022. Much of this growth was due to a rebound in the financial market, as financial wealth, a subset of global net wealth, rose by almost 7% after a 4% decline in 2022. Looking ahead, the report estimates that $92 trillion of financial wealth will be created over the next five years. It also noted that Generative AI (GenAI) will play a crucial role in the digital transformation of <keyword id="21006652" type="General" weightage="20" keywordseo="wealth-managers" source="keywords">wealth managers</keyword>, with use cases along the entire value chain. "The financial wealth market has seen an uptick in the last year since its slump in 2022. The trajectory has been fairly well but not as good as it was between 2014-2021. For the wealth creation market to go back to its previous era the condition should continue to be favourable" added Erande. The report also highlighted that financial wealth in North America and Western Europe bounced back in 2023. Supported by strong equity markets, North America was among the fastest-growing regions, accounting for over 50% of all new financial wealth in 2023. The recovery was not as strong in Western Europe, where financial wealth rose by 4.4%. "Wealth creation resumed in 2023--but even so, wealth managers cannot afford to stand still. To capitalize on growing global wealth, industry players, among others, will need to set a clear digital transformation strategy and leverage GenAI to manage costs and improve client experience," said Michael Kahlich, a managing director and partner at BCG and a co-author of the report. The report stated that the most remarkable growth dynamics emerged in the United Arab Emirates (UAE). The UAE is currently the world's seventh-largest booking centre and is expected to surpass the Channel Islands and the Isle of Man as the sixth-largest by 2028. Hong Kong's anticipated rise to become the top global financial hub was stalled by a temporary but significant slowdown in Chinese inflow. Singapore now appears to be in a position to challenge Hong Kong's rise over the long term. Switzerland remains the largest booking centre worldwide, growing in line with its historical average of 4.8% and gaining the most wealth in absolute dollar terms. However, Switzerland and other European cross-border booking centres, including the UK and Luxembourg, are growing at a slower pace than Singapore, the UAE, and the US. This shift is occurring mostly because of a stronger demand for geographic diversification, reflecting a continued surge in wealth generation in Middle Eastern and Asian markets.

India and China to drive new wealth creation globally, Asia to contribute 30% of new wealth, says BCG report

<ul class="summary-list"><li>Payam Zamani is the founder and CEO of One Planet Group, a tech company.</li><li>He is a refugee from Iran and arrived in the US in 1988 with $75.</li></ul>This as-told-to essay is based on a conversation with Payam Zamani, author of "<a target="_blank" href="https://benbellabooks.com/shop/crossing-the-desert/">Crossing the Desert: The Power of Embracing Life's Difficult Journeys</a>." It has been edited for length and clarity. I was born into a life where tests and difficulties were the norm. My family was Baha'i, a religious minority in Iran. During the Iranian revolution, we lost many rights, including the right to education. When I was 16, my parents decided I was safer being smuggled out of the country than remaining in Iran. My older brother had crossed into Pakistan ahead of me, and together, we <a target="_blank" href="https://www.businessinsider.com/british-woman-moved-us-shares-what-surprised-her-2024-7">came to the US</a> as refugees. We landed in San Francisco in 1988 with $75 between us. The next week, we started working in a screen printing shop. My brother was 23 and I was 17. My brother and I were entrepreneurs at heart and hungry for <a target="_blank" href="https://www.businessinsider.com/gen-z-200k-give-them-financial-security-inflation-costs-survey-2024-6">financial security</a>. We worked for a painting franchise, which taught us how to run a business. Then, in 1994, we founded Autoweb, the first online car-buying platform. It wasn't until 1997 that I felt financially stable. I invested wisely over the years and founded another company, One Planet Group, in 2014. I'm not sure exactly how much OPG is worth, but it's probably somewhere over $100 million. I do not believe that financial success should be viewed as the primary reflection of one's net worth. <h2>I want my daughter to experience financial discomfort</h2>About 20 years ago, I met my wife, another Baha'i from Iran. We have two daughters, who are now 18 and 19. They were born in the San Francisco Bay Area. I can't understate how important <a target="_blank" href="https://www.businessinsider.com/us-news-best-places-to-live-in-america-2016-3">living in America</a> has been for me. I still believe that no matter where you are in the world, it's a place that can offer you hope. To teach my girls that, I took them abroad. In 2019, we moved to the Czech Republic. They attended an international Baha'i school in a small town about 90 minutes outside Prague. They went to school with kids from 30 different countries and got a more worldly perspective than they would have if we'd <a target="_blank" href="https://www.businessinsider.com/moving-from-california-to-south-afford-retirement-2024-6">stayed in California</a>. When the pandemic struck, we had to return to the US. We chose to <a target="_blank" href="https://www.businessinsider.com/moving-to-new-york-city-nyc-weather-expensive-jersey-city-2024-1">settle in New York City</a> so the girls could experience cultural, socio-economic, and racial diversity that simply isn't present in the Bay Area. <div type="image" title="Payam Zamani with his wife and two daughters smiling and standing outside in front of a field of grass. He is wearing a suit and they are wearing dresses." height="3024" width="4032" msid="111903256" hostid="261"></div><h2>I gave my girls a reasonable allowance but no extra</h2>I believe that humans become their best selves through trials and difficulty. Like gold, we're purified by the fire. But growing up white-presenting in America with immense <keyword id="19897735" type="General" weightage="20" keywordseo="wealth" source="keywords">wealth</keyword>, my daughters had little trial by fire. I worried about that — in fact, I still do. I've always given the girls a <a target="_blank" href="https://www.businessinsider.com/expert-advice-kid-allowance-2023-1">reasonable allowance</a>. It's not about what I can afford, but what I think is good for them. I want their allowance to cover their essential life expenses like housing, books for college, and groceries, but only just. I don't want to pay for fast fashion or dinners out with friends. My wife and I ensured that money never came to the girls freely. I want them to run out of money and be conscious about spending. I hope those small tests prepare them for the bigger challenges they'll inevitably face. Rather than teach the girls <a target="_blank" href="https://www.businessinsider.com/millionaire-parent-teaches-kids-budgeting-entitlement-stability-2024-4">specific budgeting approaches</a>, I've let them learn through experience what works for them. I've always believed that the best way for children to learn <keyword id="20762784" type="General" weightage="20" keywordseo="money-management" source="keywords">money management</keyword> is by letting them actually manage their own finances. This approach is practical, not theoretical. They can take responsibility for their money, decide how much to save and give to charity, and understand the importance of living within their means to avoid credit card debt. This hands-on experience, rather than another lecture from Dad, is invaluable in teaching financial prudence and responsibility. <h2>I believe wealth is only commendable if earned</h2>Most importantly, I want my daughters to work. The Baha'i faith teaches that working in service of others is equal to worship. I don't want to deprive my children of that prayer. While I plan to leave my daughters a <a target="_blank" href="https://www.businessinsider.com/what-did-with-six-figure-inheritance-advice-for-others-2023-11">small inheritance</a> to ensure their <keyword id="20615853" type="General" weightage="20" keywordseo="financial-security" source="keywords">financial security</keyword>, I won't leave them enough money that they don't need to work. I want my children to have enough money to house themselves, get an education, and meet their basic needs. Beyond that, I believe money can corrupt if it's given rather than earned. I also think that wealth is only commendable if you <keyword id="20163881" type="General" weightage="20" keywordseo="earn" source="keywords">earn</keyword> it and then spend it on the betterment of the world. I use most of my wealth to try to do just that (both during my lifetime and in my will) by donating to spiritual causes and those that address racial inequalities, specifically those of Black Americans. That will not only make this world better, but it will also allow my daughters to earn their own wealth and learn about themselves and the world along the way. Editor's note: This piece previously stated that the family moved to the Czech Republic in 2018. It has been edited to reflect that they moved to the Czech Republic in 2019.

I'm a millionaire, but I'm only leaving my kids a small inheritance. I want them to earn their money like I did.

<ul class="summary-list"><li>A public offering can lead to sudden wealth creation and leave founders wondering how to manage it.</li><li>A top Goldman Sachs wealth advisor shared key considerations for startup founders.</li></ul>In 1987, Bill Gates became the world's youngest billionaire at 31. His fortune had already ballooned the year prior when his brainchild, Microsoft, went public on the Nasdaq.Like many founders who have taken their companies public, Gates saw a sudden windfall of wealth transform his life and vault him into a new tax bracket. The bank that led Microsoft's initial public offering was Goldman Sachs, the <a target="_blank" href="https://www.businessinsider.com/goldman-sachs-investment-bank-leaders-lay-out-winning-strategy-2024-6">Wall Street behemoth</a> famed for its leading position in terms of both advising on public issuances and <a target="_blank" href="https://www.businessinsider.com/goldman-sachs-2q-earnings-david-solomon-investment-banking-forecast-2024-7">handling private merger transactions</a>.Goldman executives <a target="_blank" href="https://www.goldmansachs.com/insights/articles/dealmaking-and-ipos-are-poised-for-a-revival-in-2024">have forecast in recent months</a> an increase in public offerings this year after a <a target="_blank" class="" href="https://www.businessinsider.com/wall-street-bake-offs-back-morgan-stanley-2q-ted-pick-2024-7">slow past two years for IPOs</a>. The <a target="_blank" href="https://www.ey.com/en_us/insights/ipo/ipo-market-trends">accounting and tax giant EY found that IPOs were rebounding</a> this year and has tracked 82 public offerings in the US market throughout the first half of 2024, which have collectively generated $18.6 billion in proceeds. It puts this year ahead of last year's tally, at 63 deals producing slightly more than $10 billion in proceeds.So far in 2024, Goldman Sachs' IPO team has worked on 16 public offerings in the US, which generated more than $1.5 billion in value, according to deal-tracking firm Dealogic; that's up from last year's eight IPOs, which resulted in $930 million in value.Founders who go through successful IPOs may find they have a host of new money-management needs, according to Kerry Blum, the global head of the equity-structuring group within private-wealth management at Goldman Sachs."When someone has invested a significant amount of their life in creating a company and establishing a leadership team, we appreciate that there is a lot of emotion tied to that asset," Blum told Business Insider in an interview. "We understand that the decisions they're making are both economically and emotionally important."The team reporting to Blum — a more than 20-year Goldman veteran who was elevated to the <a target="_blank" href="https://www.businessinsider.com/goldman-sachs-partners-share-investment-banking-oral-histories-2024-7">bank's elite partnership in 2022</a> — supports family offices and high-net-worth clients like the founders of big-ticket companies. Blum's team is separate from the equity-capital-markets group, which advises companies in IPOs and is situated within the investment-banking division.Through the bank's One Goldman Sachs program, which unites various business lines to cross-sell services to clients, Blum and her team share referrals with their colleagues in the firm's investment-banking division. That could mean investment bankers referring clients doing IPOs or mergers to their private-wealth counterparts who work with Blum, or vice versa, for instance.The team is equipped with a tool kit of strategies to help clients with their money-management goals — from trust and estate planning to strategizing when and how founders should sell equity.Blum shared her advice for founders who may be on the cusp of successful IPOs and how they could work with wealth advisors to set themselves and their families up for prosperous financial futures.<h2 id="bbd45c66-0556-42e4-ba5c-85e785043026">Start the conversation early</h2>If you're considering a public offering, it's never too early to broach the topic with an advisor, Blum said.Many pre-IPO founders will have a relationship with a wealth advisor, she said, and it's not unusual for them to have initial discussions several years before an IPO.About three to six months before the IPO listing date, conversations between a founder and their advisor tend to ramp up substantially, according to Blum."We'll be more engaged with clients on a more regular basis to help them understand: What does the landscape look like? What should they be expecting? And what does that final to-do checklist look like as they approach the IPO?" Blum told BI.<h2 id="80043aae-d0fe-44e4-a2f8-8a7b7504176a">Think about messaging and signaling</h2>For many founders who go through an IPO, the milestone may represent the first time they contemplate selling off big stakes of equity in a business they've built from scratch. It's important to be mindful of what such decisions can indicate to other investors and to handle the process accordingly.Indeed, founders' equity sales often come with additional rites like issuing securities filings, "so we want to make sure that we're being mindful of the messaging and signaling considerations," Blum said."You get to take a company public once. You get to make your first sale as a founder once as well," she added, pointing to the importance of being thoughtful and deliberate when making such moves.Her team tracks other companies' regulatory disclosures and information about Goldman's own client portfolio to learn what other founders are doing.With that information, Blum's team can answer clients' questions such as:<ul><li>How do their peers in the founder community think about themselves?</li><li>When are they selling?</li><li>How are they selling?</li><li>How much are they selling?</li><li>Where are they selling?</li></ul><h2 id="a1890d80-961a-40aa-8869-1ddb64c4a409">Know what your priorities are</h2>Managing your money post-IPO is in some ways like managing your portfolio as it's always been, but with more considerations to contend with and more resources at play, Blum said.That means diversification across asset classes becomes even more important, as do other choices, like which philanthropic initiatives a founder may wish to support."We also spend some time helping clients make sure that they've thought through what could their impact and legacy look like," Blum said. "And although it's 10 or 15 years out, it's never too early to think through how to optimize for those events."

A Goldman Sachs financial advisor shares 3 strategies for founders preparing to cash in on IPO wealth

<ul class="summary-list"><li>Tech mogul <a href="https://www.businessinsider.com/elon-musk">Elon Musk</a> has an estimated net worth of $264 billion.</li><li>His estimated fortune peaked at around $340 billion in November 2021 as Tesla shares soared.</li></ul>Elon Musk has a net worth of around $264 billion, according to estimates by <a href="https://www.bloomberg.com/billionaires/" target="_blank" rel="noopener">Bloomberg</a>.His net worth, which is closely tied to Tesla's share price, received a huge boost in the wake of the news that Donald Trump had won reelection as Tesla shares soared to their highest level since the beginning of the year.But the tech mogul's wealth comes from a number of sources and it isn't stable. Musk is currently the world's richest person and other billionaires are close on his heels, too: <a href="https://www.businessinsider.com/jeff-bezos-life-career-education">Jeff Bezos</a> is $43 billion behind Musk, while Meta CEO <a href="https://www.businessinsider.com/mark-zuckerberg">Mark Zuckerberg</a> is currently $18 billion below Bezos.<h2>How has Musk's net worth changed over time?</h2>Musk, who was born in South Africa, moved to Canada and dropped out of a Ph.D. at Stanford, became a millionaire before he hit 30. Musk started Zip2, a website that provided city travel guides to newspapers, with his brother Kimbal Musk, and sold it to Compaq for more than $300 million in 1999. Musk, then aged 27, is believed to have got $22 million from the deal.He went on to cofound online bank X.com in 1999. It soon merged with Peter Thiel's Confinity to become PayPal, and the company was bought for $1.5 billion by eBay in 2002. Despite having been ousted as CEO, Musk walked away with around $165 million. Musk cofounded space-exploration company <a href="https://www.businessinsider.com/spacex-elon-musk">SpaceX</a> in 2002. In 2004, he became an investor in and chairman of EV company Tesla.During the financial crisis in 2008, he saved Tesla from bankruptcy with a $40 million investment and a $40 million loan. That same year, he was named <a href="https://www.businessinsider.com/tesla-ceo-elon-musk">Tesla's CEO</a>.Musk said 2008 was "the worst year of my life." Alongside problems in his personal life, Tesla kept losing money and SpaceX was having trouble launching the first version of its <a href="https://www.businessinsider.com/spacex-falcon-9-launches-updates-schedule">Falcon rocket</a>. By 2009, Musk was living off personal loans.But <a href="https://www.businessinsider.com/tesla">Tesla</a> went public in 2010, and Musk's estimated net worth steadily climbed. In 2012 he debuted on Forbes' Billionaires List with an estimated wealth of $2 billion. In 2016, Musk set up the tunnel-digging business <a href="https://www.businessinsider.com/elon-musk-the-boring-company">the Boring Company</a>.The next year, he founded neurotechnology startup <a href="https://www.businessinsider.com/neuralink">Neuralink</a>.Musk's net worth began a rapid ascent at the start of the pandemic as <a href="https://markets.businessinsider.com/stocks/tsla-stock" target="_blank" rel="noopener">Tesla stock</a> prices soared. Musk started 2020 with an estimated net worth of just under $30 billion and was worth around $170 billion just a year later – a more than five-fold increase in just a year. His estimated fortune peaked at around $340 billion in November 2021.<a href="https://www.businessinsider.com/did-elon-musk-buy-twitter-acquisition-details">Musk also bought Twitter</a> for $44 billion in October 2022, serving as its CEO until he stood down in early June 2023.But it's tumbled since then: Tesla stock was down 56% by the end of January 2024, slashing the company's value from over $1.2 trillion to below $600 billion.<a href="https://www.businessinsider.com/elon-musk-net-worth-tesla-robotaxi-event-2024-10">Musk's net worth declined by $15 billion</a> after Tesla's "We, Robot" day on October 10 when it unveiled its highly anticipated robotaxi lineup. While the event turned heads with dancing robots and sleek autonomous vehicles offering rides to guests, it left investors with question marks surrounding the economics of the ride-hailing service. Following a big earnings beat later that month, Tesla's stock surged by 22%, leading <a href="https://markets.businessinsider.com/news/stocks/elon-musk-net-worth-gains-tesla-stock-price-earnings-tsla-2024-10">Musk's net worth to increase by about $30 billion</a>. The morning of Trump's reelection on November 6, which Musk heavily campaigned for, Tesla's stock was up about 15% to $289.37 per share after the market opened, the highest it's hit all year. <h2>Where does Musk's fortune come from?</h2>Musk's wealth is largely dependent on Tesla shares. Though he takes no <a href="https://www.businessinsider.com/elon-musk-tesla-salary-dropped-zero-2020-pay-electric-vehicles-2021-8">salary from Tesla</a>, he's awarded stock options when the company hits challenging performance metrics."Elon will receive no guaranteed compensation of any kind — no salary, no cash bonuses, and no equity that vests simply by the passage of time," Tesla said in 2018 when the company announced a 10-year performance award for Musk. "Instead, Elon's only compensation will be a 100% at-risk performance award, which ensures that he will be compensated only if Tesla and all of its shareholders do extraordinarily well."Investors had initially approved the $55 billion compensation plan in 2018, but a Delaware judge <a href="https://www.businessinsider.com/judge-strikes-down-elon-musk-tesla-compensation-pay-package-2024-1" target="_blank" rel="noopener">voided it in January</a> on grounds that Musk had undue influence over the package and its approval due to close ties with several board members.At its annual shareholder meeting in June, <a href="https://www.businessinsider.com/elon-musk-pay-package-approved-tesla-shareholders-vote-results-2024-6">investors voted to approve Musk's pay package</a>.According to Bloomberg, close to half of Musk's net worth comes from Tesla shares, while just over 20% comes from <a href="https://www.businessinsider.com/spacex-stock">SpaceX stock</a>.The rest of his wealth comes from shares in <a href="https://www.businessinsider.com/elon-musk-twitter">Twitter</a> and The Boring Company, as well as other miscellaneous liabilities.

What is Elon Musk's net worth? Find out the wealth of the Tesla, SpaceX CEO

<ul class="summary-list"><li>China has chosen Saudi Arabia as the site for its next offering of US dollar bonds.</li><li>It's China's first such offering in three years, and shows deepening financial ties between the two nations.</li></ul>Investing ties between Riyadh and Beijing are growing harder to ignore.China has has chosen Saudi Arabia as the site for its first US dollar bond sales in three years, scheduled for next week, according to a Ministry of Finance statement.Saudi Arabia has embraced Chinese investment to help bankroll its juggernaut modernization plans. The country's so-called Vision 2030 project — an effort to turn Saudi Arabia into a greener, innovation-centered economy — recently reached <a target="_blank" href="https://www.businessinsider.com/saudi-arabia-vision-2030-projects-trillion-value-neom-2024-9">$1.3 trillion in value</a>.Meanwhile, the kingdom's construction plans and emphasis on renewables have offered Chinese real estate developers and tech industries a fresh playing field.For instance, Saudi Arabia has been courting Chinese investors to fund its futuristic mega-city, Neom, the centerpiece of Vision 2030. The kingdom has had some success over recent years, and China has agreed to <a target="_blank" href="https://www.businessinsider.com/saudi-seeks-china-neom-mbs-investment-risk-vision-crown-prince-2024-6">various tech deals related to the project</a>.The Saudi Public Investment Fund — the nation's sovereign wealth vehicle — signed $50 billion worth of deals with Chinese lenders in August, according data compiled by the <a target="_blank" class="" href="https://www.ft.com/content/0d2a3dcc-9d1e-4741-84dc-8e5a81303a1b">Financial Times</a>.Tech-related investments have also kept up: in one telling example, Saudi Arabia has reportedly <a target="_blank" href="https://www.businessinsider.com/saudi-arabia-china-ai-startup-openai-zhipu-ai-2024-6">backed a Chinese competitor to OpenAI</a> over the summer.At the end of October, Saudi Arabia <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-10-31/two-etfs-tracking-hong-kong-china-shares-debut-in-saudi-arabia">debuted</a> two new exchange traded funds to track markets in Hong Kong and China. These instruments will allow Saudi investors easier access to Chinese equity exposure.However, these deepening ties have also attracted US scrutiny. Earlier this year, the US offered Saudi Arabia tech and security deals on the condition that Riyadh rejects its new tech alliance with China.

The financial ties between China and Saudi Arabia keep getting deeper

<ul class="summary-list"><li>Many people who receive an inheritance don't spend it wisely, according to financial planners.</li><li>It's important to come up with a detailed financial plan when you receive an inheritance.</li></ul>Receiving a large amount of money from an <a target="_blank" href="https://www.businessinsider.com/estate-planning-how-to-handle-inheritance-assets-house-401k-ira-2024-10">inheritance</a> can be life-changing — but only if you take the right steps to handle it.It can be difficult to make big financial decisions, especially around an emotionally charged subject. According to financial advisors, many inheritors end up spending the money they receive — usually from a deceased parent or grandparent — in just a few years.Don't worry, though, if you're expecting or recently received an inheritance. You can prevent this situation by avoiding a few simple mistakes, according to Vimala Snow, head of wealth strategy at Cresset Capital, and Dave Jones, director of estate strategy at Bailard.Below are the most common mistakes they see clients make and how to avoid them.<h2 id="b00e9626-47f7-4359-b39e-a059e32d0222">Not having tough conversations early</h2>It's definitely not a comfortable conversation, but discussing estate planning early on will save you a lot of headaches later.Jones recommends starting small by talking about easier topics, such as the location of important documents."Just the location of documents can be a starting conversation. Sometimes parents don't want to talk about the exact plans yet," he said.Asking your parents about their retirement accounts, if they have an estate plan, and what sort of assets they're thinking of passing down are good starting points."Those are just really basic things that can then lead into a larger discussion about the estate plan," Jones added.It's much easier to clarify any confusion surrounding assets when the person passing their assets along is still alive, which is why these conversations are important, according to Snow. Inheritors should make sure they understand the values that parents have regarding money, as well as how certain assets should be managed.<h2 id="14519a89-2828-4b1a-924f-d01da5b20939">Not having a long-term plan</h2>This is a common mistake when it comes to financial planning in general, but it's especially relevant when a large amount of money is on the line, according to Jones."A lot of inheritors will spend the money, and they'll spend it quickly because they may not have had the best financial habits before the inheritance," Jones said.He recommends considering a few basic financial planning questions. Take a look at the type of assets you're inheriting — whether it be brokerage accounts, real estate, or others — and evaluate how these fit into your current financial goals.It depends on your personalized financial needs, but Jones recommends considering the following questions: "Do you need to generate income for yourself? Do you have an emergency fund? Do you have debts that you need to pay off?"Inheritors who establish concrete financial goals will set themselves up for success. "There's a much higher chance that the inheritance will benefit the inheritor for a long time," Jones said.<h2 id="1eee78ff-be04-43de-a777-3edbcdfaf8b3">Expecting to receive assets immediately</h2>When coming up with a financial plan, keep in mind that you won't receive your inheritance immediately, according to Snow.Estate administration can be a long legal process. The larger the estate, the longer the wealth transfer process will take, Snow said. It could take several months, or even years, for asset distribution to be completed.If estate taxes are due, then the tax return will need to be submitted nine months after the date of death, Snow added.The distribution process won't always be smooth. Complications can arise, especially over assets like a house, Jones said. If siblings inherit the family home but can't agree on what to do with the property, it could take a long time to figure out how to pass on the asset in a way that satisfies all the inheritors.<h2 id="a6fd722f-adb9-406d-ab55-78010263bfb4">Not working with an advisor</h2>Don't underestimate how complicated estate planning can be. It's often helpful to use the advice of a professional, especially during an emotionally turbulent time.It might take a team of legal and financial professionals to ensure the best outcome for your inheritance. Financial advisors, tax specialists, and estate planning attorneys can all offer assistance.Experts can help you come up with a long-term strategy for investing an inheritance. In more complicated cases, such as if the person died without a will, you may need to consult a probate lawyer to locate and value the deceased's assets. The laws governing estate taxes can also vary from state to state, so getting an expert opinion can help clarify confusion."Making sure that you're asking lots of questions and relying on your team is a really important part of the process rather than trying to do it yourself because it is pretty complicated," Snow said.

Avoid these 4 mistakes and misconceptions when receiving an inheritance, according to financial planners

<keyword id="19895142" type="General" weightage="100" keywordseo="Shah-Rukh-Khan" source="keywords">Shah Rukh Khan</keyword>, widely known as the "King of <keyword id="19897820" type="General" weightage="20" keywordseo="Bollywood" source="keywords">Bollywood</keyword>," has officially joined the ranks of India’s wealthiest, debuting on the 2024 <keyword id="21075617" type="General" weightage="20" keywordseo="Hurun-India-Rich-List" source="keywords">Hurun India Rich List</keyword> with an impressive wealth of Rs 7,300 crores. But how did a Delhi boy with dreams of making it big in Mumbai become one of India’s richest individuals? Let’s dive into the ventures that propelled King Khan into the billionaires' club. <h3 style="line-height:1.2;margin-top:14pt;margin-bottom:4pt;"><keyword id="20033371" type="General" weightage="20" keywordseo="Red-Chillies-Entertainment" source="keywords" meta.keywordsubtype="org" meta.entityname="Red Chillies Entertainment" meta.hostid="261" meta.entityid="Red Chillies Entertainment">Red Chillies Entertainment</keyword></h3>Shah Rukh Khan’s production company, Red Chillies Entertainment, has been a significant contributor to his wealth. Founded in 2002, Red Chillies has become a key player in Bollywood, producing blockbuster films and investing in high-quality visual effects. From chart-topping films like Chennai Express and Raees to the massive success of Pathaan in 2023, Red Chillies has consistently delivered box office hits. <div type="Article" hostid="261" msid="112412196" title="&amp;#39;Deadpool &amp;amp; Wolverine&amp;#39; screenwriters reveal secrets and spoilers, including the movie&amp;#39;s original villain and who wrote that Hugh Jackman divorce joke" mstype="2" mssubtype="0"></div>With an estimated revenue consistently in the hundreds of crores and a profit of Rs 85 crores last year, the company has not only cemented SRK’s position as a top actor but also as a successful producer. Furthermore, the company’s VFX division, Red Chillies VFX, has set new benchmarks in the <keyword id="20161413" type="General" weightage="20" keywordseo="Indian-film-industry" source="keywords">Indian film industry</keyword>, working on major projects that have earned critical and commercial acclaim, such as Ra.One, Fan, and Laal Singh Chaddha. These ventures have significantly bolstered SRK’s wealth, making Red Chillies Entertainment a cornerstone of his business empire. <h3 style="line-height:1.2;margin-top:14pt;margin-bottom:4pt;"><keyword id="19899758" type="General" weightage="20" keywordseo="Kolkata-Knight-Riders" source="keywords" meta.keywordsubtype="org" meta.entityname="Kolkata Knight Riders" meta.hostid="261" meta.entityid="Kolkata Knight Riders">Kolkata Knight Riders</keyword></h3>Shah Rukh Khan’s entry into the sports business with the IPL franchise Kolkata Knight Riders (KKR) has been a masterstroke. Co-owned by SRK, Juhi Chawla, and Jay Mehta, KKR has become one of the most successful and profitable franchises not just in the Indian Premier League, but also in the sporting world. The team’s consistent performance on the field has been matched by its financial success off it, with KKR’s brand value rising steadily over the years. As per Forbes, the cricket team was valued at over $1 billion in 2022. This surge in valuation played a crucial role in boosting SRK’s wealth, contributing significantly to his fortune. The success of KKR, coupled with its passionate fan base and strong marketing, has made it a jewel in SRK’s business portfolio, further solidifying his status as a businessman. <h3 style="line-height:1.2;margin-top:14pt;margin-bottom:4pt;">Brand SRK: The most followed Indian on social media</h3>More than just a business mogul, Shah Rukh Khan is also a brand unto himself. With 44.1 million followers on Twitter, SRK is the most followed individual from the 2024 Hurun India Rich List on Indian social media. His massive <keyword id="20462299" type="General" weightage="20" keywordseo="social-media-presence" source="keywords">social media presence</keyword> has translated into lucrative endorsement deals and collaborations with global brands. <div type="Article" hostid="261" msid="112249289" title="One of Singapore&amp;#39;s flashiest CEOs was planning to throw a Tomorrowland-style party for the books. Then the mirage started to fall apart." mstype="2" mssubtype="0"></div>Consistently being one of the most visible endorsers, SRK earns substantially from <keyword id="20004407" type="General" weightage="20" keywordseo="brand-endorsements" source="keywords">brand endorsements</keyword>, with an estimated fee of Rs 4-5 crores per endorsement. His portfolio includes major brands like Hyundai, Dubai Tourism, and BYJU'S, further adding to his immense wealth. His ability to leverage his celebrity status into profitable business ventures has undoubtedly been a key factor in his <keyword id="21015152" type="General" weightage="20" keywordseo="wealth-accumulation" source="keywords">wealth accumulation</keyword>. <h3 style="line-height:1.2;margin-top:14pt;margin-bottom:4pt;">Real estate</h3>Real estate has always been a key component of wealth building, and Shah Rukh Khan is no exception. Shah Rukh Khan’s <keyword id="22962036" type="General" weightage="20" keywordseo="real-estate-ventures" source="keywords">real estate ventures</keyword> extend far beyond his iconic Mumbai residence, Mannat. One of his lesser-known yet highly lucrative ventures is in Dubai, where he and his wife Gauri Khan launched a luxurious beachfront residential project, the "SRK Boulevard," located in the posh Dana Islands. This mega project, worth over Rs 18,000 crore, features 10 residential buildings with high-end facilities, including marine sports and leisure amenities. Designed by Los Angeles architect Tony Ashai, with interiors by Gauri Khan, this project highlights SRK’s foray into international real estate <h3>And of course, films</h3>Shah Rukh Khan’s earnings from films and endorsements are a significant part of his wealth. Known as one of the highest-paid actors in India, SRK reportedly charges over Rs 100 crores per film. This is certainly no small amount, but it is unlikely that filmmakers will find fault with it, considering how his films regularly break box office records. As per IMdB, both 2023 films Jawan and Pathaan grossed over Rs 1000 crores worldwide. All in all, King Khan’s entry into the Hurun India Rich List is significant not just for him, but for the entire entertainment industry. SRK’s success reflects the growing financial clout of Indian film stars and the increasing importance of entertainment in wealth creation. In 2024 alone, Hurun India Rich Listers from the entertainment industry added Rs 40,500 crores to their wealth, with SRK leading the charge. This trend highlights the expanding influence of Bollywood and the entertainment sector in India’s broader economic landscape.

Baadshah of Bollywood Shah Rukh Khan debuts on India's richest list with Rs 7,300 cr — here's how the King made his wealth

<ul class="summary-list"><li>Devoting your life to making money can leave you lonely and aimless, Matthew McConaughey says.</li><li>The actor warned against chasing cash at the cost of relationships and other valuable parts of life.</li></ul>People who spend their whole lives trying to get as rich as possible risk winding up <a target="_blank" class="" href="https://www.businessinsider.com/downsides-of-getting-rich-2014-6">lost and alone</a>, Matthew McConaughey says.The Oscar-winning actor spoke about the <a target="_blank" class="" href="https://www.businessinsider.com/fire-movement-financial-independence-retire-early-millennial-goals-saving-wealth-2024-5">downsides of success</a> on an episode of the "Modern Wisdom" podcast released on Monday.<a target="_blank" class="" href="https://www.businessinsider.com/matthew-mcconaughey-career-advice-going-to-film-school-new-book-2020-10">McConaughey</a>, 55, said he's met many ultrawealthy people who have "chased that dollar to be successful and to be relevant for having the most money, that the last 15, 20, even younger years were bewildered, lost, had no relationships, didn't have a purpose."The "Interstellar" and "Dallas Buyers' Club" star said there are <a target="_blank" class="" href="https://www.businessinsider.com/money-can-buy-happiness-helps-explain-income-inequality-study-2024-10">diminishing returns</a> to how much wealth improves your quality of life — yet American culture reinforces the idea that more is always better."It's also why I wasn't surprised when <a target="_blank" class="" href="https://www.businessinsider.com/donald-trump">Trump</a> first got elected," McConaughey said. "He had fame, he had money. We sell that every day in the West as this is how you make it, this is what you do."The actor said he <a target="_blank" class="" href="https://www.businessinsider.com/money-can-buy-you-happiness-economy-wealth-research-paper-kahneman-2023-3">loves money</a> and what it lets him provide for his family, his wife, and himself."But would I be any less happy if I had a 30th, a 40th, a 50th of what I have right now?" McConaughey asked. "There's no way I'd be any less happy."A bigger bank balance doesn't always translate into a more fulfilling life. "Watch out just drinking the Kool-Aid," he said, advising people to ask themselves what they want from life and what they value most."Just check your quality as you're chasing your quantity and make sure that whatever you're succeeding at is giving you actual profit and actually paying you back," he added.<div type="image" title="Matthew McConaughey and Camila Alves McConaughey." height="2407" width="3610" msid="115215852" hostid="261" sizebytes="430360"></div>McConaughey pointed to <a target="_blank" class="" href="https://www.businessinsider.com/billionaire-charlie-munger-business-advice-for-success-cut-toxic-people-2023-5">relationships</a> and how you treat yourself and others as examples of the "profit" reaped from earning money.He said his comments might seem out of touch to people struggling financially, but he was giving his perspective.The impact of higher inflation and interest rates has <a target="_blank" class="" href="https://www.businessinsider.com/economy-pomboy-consumer-spending-savings-debt-inflation-interest-rates-recession-2024-5">pinched household budgets</a> since the pandemic. Steeper living costs were a <a target="_blank" class="" href="https://www.businessinsider.com/donald-trump-election-win-analysis-harris-immigration-abortion-economy-musk-2024-11">central issue</a> in the US presidential race and other elections worldwide this year.Many rich people have said there's more to life than accumulating wealth and <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-is-a-billionaire-who-doesnt-care-about-money-2020-5">material possessions</a>, and have warned against losing sight of what truly matters.<a target="_blank" class="" href="https://www.businessinsider.com/how-warren-buffett-spends-money-net-worth">Warren Buffett</a> once told a group of college students that close relationships are much more valuable than net worth, according to a biography of the billionaire investor titled "The Snowball: Warren Buffett and the Business of Life.""Basically, when you get to my age, you'll really measure your success in life by how many of the people you want to have love you actually do love you," the <a target="_blank" class="" href="https://www.businessinsider.com/warren-buffett-berkshire-hathaway-cash-stocks-buybacks-trump-harris-election-2024-11">Berkshire Hathaway</a> CEO said."If you get to my age in life and nobody thinks well of you, I don't care how big your bank account is — your life is a disaster."

Matthew McConaughey says chasing wealth can leave you lost and alone — and he'd be happy with 1/50th of his fortune

<ul class="summary-list"><li>Ben Grant, 25, grew up in a working-class city in England.</li><li>He got into sales at 16 and became a millionaire last year at 24.</li></ul>This as-told-to essay is based on a conversation with <a target="_blank" href="https://www.ben-grant.com/">Ben Grant</a>, CEO of Learn Sales. It has been edited for length and clarity.Growing up, my family didn't have much money, but we always got by. Sometimes classmates would have the newest iPhone, but I never did. Still, I never went without the things I needed.My dad worked in the police force, and my mom worked part-time in the tax office. They never brought home a <a target="_blank" href="https://www.businessinsider.com/working-after-stay-at-home-parent-2024-11">combined income</a> of more than £45,000 (about $68,000). That was normal in Sunderland, England, the working-class town where I grew up. Kids like me were taught to have an employee mentality: go to school, get a job, and show up every day.Early on, I knew I didn't want to settle for average. I finished school at 16 and started working in a call center for <a target="_blank" href="https://www.businessinsider.com/federal-minimum-wage-workers-map-2018-10">minimum wage</a>. That was my first exposure to sales. I realized that with sales, I could be in control of my own payslip at the end of the month. Thanks to commissions, there was no cap on what I could earn. My income was directly tied to how hard I worked.<h2 id="19741602-7fb9-4ec2-a070-832141e71639">I worked hard and saved to have $1 million in the bank</h2>As soon as I started making money, I reinvested it in myself. I did sales courses and seminars, which made me better and better with this skill set. Soon, I was headhunted by companies that did business-to-business (B2B) sales. Many people in my town made £30,000 (about $38,000), but people in B2B sales made 10 times that. I wanted to be them.I worked methodically to get big paychecks and <a target="_blank" href="https://www.businessinsider.com/personal-finance/banking/how-to-save-money">save my money</a>. It's like going to the gym: when you show up every day, you don't see the small changes, but when you look back at progress photos of where you started, there's a dramatic difference.Last year, I <a target="_blank" href="https://www.businessinsider.com/personal-finance/million-dollar-system-rachel-rodgers-2023-7">had $1 million in liquid assets</a> in the bank. That was surreal. I was only 24.<h2 id="e9cb73c0-6c3d-4c8a-871f-d03f094667da">I was uncomfortable with people treating me differently</h2>Even before I <a target="_blank" href="https://www.businessinsider.com/financial-freedom-strategy-millionaire-retire-early-2019-2">became a millionaire</a>, I noticed that people started treating me differently. Suddenly, the popular crowd — who never paid attention to me in school — started inviting me out. Once I was there, they expected me to pay.I prefer to keep to myself. I have one small Instagram account for family and friends, but otherwise, I don't spend time on social media. In the small city I lived in, I stood out because of my <a target="_blank" href="https://www.businessinsider.com/personal-finance/enough-money-plan-goals-success-2023-12">financial success</a> at such a young age. I didn't like that, and I didn't want to be treated differently because of my wealth.So, earlier this year, I moved to Dubai. Here, I can blend in more easily. The city is very focused on entrepreneurship, so it's a great networking opportunity, too. But there's also peace of mind in knowing I'm a small fish in a very big pond here.<h2 id="928fecfb-40c1-4d07-8030-a59921629264">I drive a modest car and still have bad days at work</h2>Although I live in Dubai, I'm not driving a Lamborghini or living in a mansion on The Palm. I recently bought a 2018 Range Rover for about $20,000. It's a nice car that gets me from point A to point B. That's all I need.I've learned that having money doesn't necessarily change your level of happiness. Yes, there's a sense of security, but I still have had days. I have a 2-year-old son with a previous girlfriend back in England, and <a target="_blank" href="https://www.businessinsider.com/personal-finance/rules-spender-saver-relationship-build-wealth-2021-9">money has complicated my relationship</a> with his mother. Sometimes, I'm bored with sales and wonder whether I'm doing the right thing with my life.The main issue I face is the expectation of high performance. I put a strain on myself mentally to always do better, whether trying to earn more, help more people, or be a better partner. I can be quite hard on myself, and I've had to learn to prioritize my mental health.<h2 id="9e3a7101-da35-4a2b-bdff-8fb72cba442d">I recently got engaged, but I'm not planning a flashy wedding</h2>Luckily, the people closest to me treat me the same as they always have. My parents wouldn't care if I was a millionaire, or had pennies to my name. They just want me to be happy. But it's nice to offer them some support. Recently I helped my dad start a passion project after he had to take <a target="_blank" href="https://www.businessinsider.com/planned-retirement-until-discovered-fire-2024-04">early retirement</a> from the police because of a medical issue.My greatest asset is my fiancé. She has a similar background to me. In the past, I dated women who were in it for the money, and my fiancé couldn't be more different.People expect we'll have a grand wedding. Someone told me I should charter a private jet for the bachelor party. Those comments make me think people just want to come to be a part of this event, not to actually support us. I suspect we're just going to elope, which is more our style.

I moved to Dubai when I became a millionaire at 24. People don't treat me differently here because of my wealth.

<ul class="summary-list"><li>The Fed has started cutting rates, but it's not likely to boost the economy much, Lisa Shalett says.</li><li>The economy is less rate-sensitive than it was during previous rate cuts, Shalett argues.</li></ul>Rate cuts have long been seen as an integral part of the Federal Reserve's monetary policy toolbox to juice up the economy.However, don't expect rate cuts to save the economy this time around, according to Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.Investors may have reacted positively after the initial 50-basis-point cut, but Shalett believes rate cuts have already been largely priced in from here on out. Beyond the stock market, several parts of the economy aren't very sensitive to interest rate cuts and won't see much upside either.Today's economy is facing different challenges than it has in past cutting cycles. In an interview with Business Insider, Shalett shared what to expect — and not expect — from this cutting cycle.<h2 id="f23ffa4b-b498-4d31-84b2-6a9dff847e03">3 reasons rate cuts won't work</h2>First, companies today are carrying more cash, resulting in stronger balance sheets.Many also locked in low borrowing rates after the Global Financial Crisis. The average cost of capital for the biggest companies in the index is only 4.2%, according to Shalett. With less debt, and subsequently fewer interest payments, many S&amp;P 500 constituents aren't that exposed to interest rate risk.Household consumption also points to reduced rate-cut relief. Wealth is disproportionately concentrated across American households, Shalett said, with the top 40% of households driving two-thirds of total consumption."For those households with net savings, high interest rates were actually stimulative," Shalett said. High-income households with extra cash on hand benefited from increased interest income in a higher-rate environment.One example is baby boomers, many of whom live off of fixed incomes in retirement. "For them, lower interest rates are not stimulative. It's actually net reductive to their incomes," Shalett said.While lower interest rates could potentially spur consumption for lower-income households, this group makes up only a small portion of overall spending, so don't count on that to materially stimulate the economy, she said.Lastly, the housing market poses a large challenge for the economy, and Shallett doesn't believe rate cuts will be able to improve the situation.Lower mortgage rates can help housing affordability, but they won't solve the underlying issue of housing inventory undersupply. According to Shalett, the US is about 4 million housing units short, thanks to a lack of construction after the housing crisis.In addition to a dearth of supply, how homes are financed also poses an issue."Forty percent of the entire housing stock of the US is now owned outright with zero mortgage," Shalett said. That means homeowners are disincentivized to sell into a housing market where mortgage rates — while down from earlier highs — are still hovering around 6%. Many of these homes are owned by retired baby boomers, Shalett added.Another 36% of the housing market has a mortgage locked below 4%, thanks to record-low pandemic interest rates."So the fact that mortgage rates are at 6% today doesn't really create an incentive for those people to transact in the mortgage market," Shallett said. "Seventy-six percent of your entire housing market is frozen and is not moved by the rate cuts."<h2 id="002388a3-cc3f-44ad-bf7c-dd5d6ca2a259">Keep an eye out for corporate earnings</h2>If rate cuts won't significantly kickstart the economy, then what will?In Shalett's view, the economy's success hinges on increasing corporate productivity. Shalett recommends that investors closely monitor corporate earnings for the upcoming quarters.Earnings expectations are already quite ambitious for the next year — Wall Street is forecasting 13-14% profit growth in 2025, a tall order in a slowing economy.However, a productivity-driven rebound isn't out of the question. Companies are still reporting above-average capital expenditures, and government stimulus will boost areas of the economy such as infrastructure and energy. And the promise of AI could also drive productivity gains. All of these factors could lead the economy to a soft landing.

3 reasons rate cuts won't stimulate the economy like they have in the past: Morgan Stanley Wealth Management CIO 

<ul class="summary-list"><li>Saudi Arabia and Abu Dhabi's sovereign wealth funds have had a busy few years.</li><li>The funds have been on a huge investment spree beyond the Gulf, with tech a particular focus.</li></ul>On the global stage, few have been as active in flaunting their cash in recent years as the Middle East's most powerful money men.Leaders of <a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-public-investment-fund-pif-sports-influence-pga-liv-2023-6">Saudi Arabia's Public Investment Fund</a> (PIF) and Abu Dhabi's Mubadala — sovereign wealth funds that oversee assets worth more than $1 trillion combined — have been on a busy investment spree beyond the Gulf region to stake a claim in whatever takes their fancy.Data <a target="_blank" href="https://globalswf.com/reports/2024gsr#market-update-1h-2024-1">published last month by GlobalSWF</a>, a platform tracking sovereign wealth fund activity, found that over half the $96 billion invested by state-backed funds globally in the first six months of 2024 came from Middle Eastern funds.A particular focus for these funds built on the back of petrodollars has been to build ownership and influence in the tech sector. Mandates to diversify their economies at home through initiatives like <a target="_blank" class="" href="https://www.businessinsider.com/vision-2030-saudi-arabia-plan-future-proof-oil-economy-2023-8">Vision 2030</a> have created incentives to bet on those with an eye to the future.In 2017, both funds made a collective commitment of $60 billion to <a target="_blank" class="" href="https://www.businessinsider.com/inside-softbank-vision-funds-awful-year-former-employees-rival-vcs-2022-12">SoftBank's then-newly minted Vision Fund</a>, the world's biggest venture capital vehicle that would go on to transform the world of startup investing with bets on companies like TikTok owner ByteDance and Uber.More recently, PIF and Mubadala have been busy making tech bets of their own, pouring billions of dollars into everything from electric vehicle companies to fintech startups seeking to shake up the world of finance.Not all of them seem to be going to plan.<h2 id="9c0825b9-c7bd-475a-b6f2-4a91031a1215">Lucid action</h2><div type="image" title="MBS" height="658" width="1024" msid="112371997" hostid="261" sizebytes="60394"></div>Over the past week, PIF and <a target="_blank" class="" href="https://www.businessinsider.com/abu-dhabi-mubadala-sovereign-wealth-fund-investing-in-software-ai-2023-7">Mubadala</a> have been busy figuring out what to do when their unbridled ambitions for tech companies face reality.On Monday, Saudi Arabia's sovereign wealth fund pulled up its money truck for <a target="_blank" class="" href="https://www.businessinsider.com/lucid-chinese-automakers-years-behind-tesla-electric-vehicles-elon-musk-2024-5">Lucid, the California-based Tesla rival</a> it has 60% ownership of, with a fresh $1.5 billion commitment aimed at helping the company through a tough period.<a target="_blank" href="https://ir.lucidmotors.com/news-releases/news-release-details/lucid-group-inc-announces-public-investment-fund-commitment-15">According to Lucid</a>, the commitment will see PIF affiliate company Ayar purchase $750 million in convertible preferred stock and provide a $750 million loan facility at a critical moment for the firm.In March, CEO Peter Rawlinson told the Financial Times that although Lucid has sufficient funds to see it through to next year, it was spending about $1 billion a quarter in its mission to deliver luxury EVs to the market.The heavy spending needed to build a strong EV brand hasn't been helped by a <a target="_blank" class="" href="https://www.businessinsider.com/tesla-sales-miss-ev-slowdown-new-wave-customers-2024-4">global slowdown in demand for clean energy vehicles</a>, as inflation and high interest rates prompt consumers to spend more cautiously.The Lucid Air, marketed as "a superior long-range electric sedan" that can hit 60 miles an hour in 1.89 seconds, starts at $69,900.<div type="image" title="Lucid Air Sapphire" height="681" width="1024" msid="112372000" hostid="261" sizebytes="71938"></div>Although Lucid now has a new lease of life from the Saudis, Rawlinson acknowledged back in March that it was dangerous to expect the state's <a target="_blank" href="https://www.ft.com/content/356479d2-f08b-4ab1-9233-3a2bc49596ff">"bottomless wealth"</a> would be a constant fallback. How long the Saudis want to stick around remains to be seen.PIF has also been pushed to offer a lifeline to Magic Leap.<a target="_blank" href="https://find-and-update.company-information.service.gov.uk/company/09320795/filing-history">UK filings</a> released for the augmented reality company on August 2 said that the Saudi fund, which has been majority owner since 2022, put $750 million into the struggling business from the start of last year through to July 2024.The filings also said that "based on the most recent forecasts," the company would need to raise funds again before "late August 2024 and again in January 2025 and June 2025" to meet financial obligations.<h2 id="fc65cabf-4f30-4a75-9b64-8c22a87d8815">Rescue mode</h2>Will the Saudis be the ones to plug that financing hole? If it plans on sticking with Magic Leap in the long term, it'll be aware of just how much support the firm will need, as it's spent 14 years struggling to get its vision for immersive technology off the ground.Abu Dhabi's Mubadala appears to have been in rescue mode this past week too.Reports from the Financial Times and Bloomberg have shone a light on efforts being made by the sovereign wealth fund to boost returns in European startups it has invested billions of dollars in.Several of these nascent tech companies, such as insurance firm WeFox, have been bruised by shifting sentiment in the markets in recent years. The lofty valuations they secured when interest rates remained low have taken a hit, triggering moves such as restructurings and leadership changes, the reports said.It's worth noting that both Mubadala and the PIF remain in strong positions overall. In May, <a target="_blank" href="https://www.mubadala.com/en/news/mubadala-investment-company-reports-2023-financial-results">Mubadala announced</a> that its assets under management in 2023 had risen 9.4% from the year before. In July, PIF said it swung to a profit last year after making a loss in 2022.Still, both funds will be aware that they have embarked on a globe-trotting mission to establish a reputation for themselves as sophisticated investors capable of making shrewd moves.Seeing their tech bets fall apart will be a tough reality to face.

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