What Have Billionaires Been Up to Lately?

What Have Billionaires Been Up to Lately? Episode 327 – Billionaires are considered role models by many and disliked by many others. Although relatively tiny in terms of numbers, they have an enormous influence on our economy. Where are they headed these days? More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 327 Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, what have billionaires been up to lately? Billionaires are considered role models by many and disliked by many others. Proponents cite their hard work and their embrace of innovation. Detractors cite their tremendous compensation and role in income inequality. According to a recent report by Altrata’s Billionaire Census, there are now more than 1,100 billionaires in the United States.[1] This is about a third of the worldwide total. Although they represent a tiny portion of the population, one way or another, billionaires have an enormous influence on our economy. So, what have they been up to lately? A recent study by UBS provides some insights.[2] Here are a few of them: Their numbers are increasing. Since 2015, the number of billionaires has increased by more than 50%. Also, their combined net worth has more than doubled.[3] Billionaires do better with their portfolio. No shock here. According to the study, billionaires have outperformed equity markets over the last 10 years. Their total wealth increased by 121 percent between 2015 and 2024.[4] Tech leads the way. The wealth of tech billionaires has been growing the fastest of any sector. These people specialize in e-commerce, social media, digital payments, generative AI and cybersecurity, among others.[5] But… Industrial leaders have done surprisingly well. The good fortune of tech billionaires is not much of a surprise, but the strong position of industrial leaders was unexpected. Much of the increase came from ownership in technologically-advanced industries such as aerospace, military defense and electric vehicles. Real estate has done worse than expected. Real estate billionaires performed in line with the other categories until 2017 but have trailed ever since. This is attributed to lagging property values and the COVID-19 pandemic.[6] Billionaires seem to be relocating more frequently. With homes, family and businesses spread around the world, billionaires have more of a tendency to move to different countries. But it’s become more common since the pandemic. Many people are moving for tax benefits (including favorable estate and gift taxes), but also for personal safety and political reasons.[7] Their families are getting bigger. You can insert your own joke about Elon Musk and his 14 children here, but he is not alone. Billionaires appear to be having more children. Along with longer life expectancies, the result is an increase in the number of multigenerational billionaires, and the more complicated planning that comes with it.[8] Billionaire baby boomers are struggling with big inheritances. According to the report, baby boomers will have a big obligation for the coming years. Their heirs and favored charitable organizations stand to inherit an estimated $6.3 trillion over the next 15 years. That number has gone up considerably in the last few years.[9] The demographics are evolving. According to Statista, 90 percent of billionaires are over the age of 50, with the overwhelming majority (87.5 percent) being male.[10] But that seems to be changing. Altrata’s Billionaire Census 2024 indicates that a larger percentage (17.9 percent) of billionaires are under the age of 50 are female.[11] So, what can we learn from these mega-wealthy individuals? For one thing, many of these people—particularly in the tech sector—are visionaries who are not afraid of taking risks.[12] Additionally, they seem to have embraced complexity when it comes to wealth and estate planning. We may not be billionaires ourselves, but we may be able to understand at least a little bit about how they think.   [1] Imberg, Maya. “Altrata’s Billionaire Census 2024.” Altrata.com. https://altrata.com/reports/altratas-billionaire-census-2024?utm_medium=referral&utm_source=press&utm_campaign=11-20-24_at_billionaire+census+2024&utm_content=PR (accessed March 13, 2025). [2] UBS Global Wealth Management. “Billionaire Ambitions Report 2024: Wealth in Motion.”  UBS.com. https://www.ubs.com/global/en/wealthmanagement/family-office-uhnw/reports/billionaire-ambitions-report.html (accessed March 13, 2025). [3] Imberg, Maya. “Altrata’s Billionaire Census 2024.” Altrata.com. https://altrata.com/reports/altratas-billionaire-census-2024?utm_medium=referral&utm_source=press&utm_campaign=11-20-24_at_billionaire+census+2024&utm_content=PR (accessed March 13, 2025). [4] Id. [5] Id. [6] Id.  [7] Id. [8] Id. [9] Id. [10]  Galan, S. “Age distribution of billionaires globally 2022.”  Statista.com. https://www.statista.com/statistics/621046/age-distribution-of-billionaires-globally/ (accessed March 13, 2025). [11] Imberg, Maya. “Altrata’s Billionaire Census 2024.” Altrata.com. https://altrata.com/reports/altratas-billionaire-census-2024?utm_medium=referral&utm_source=press&utm_campaign=11-20-24_at_billionaire+census+2024&utm_content=PR (accessed March 13, 2025). [12] UBS Global Wealth Management. “Billionaire Ambitions Report 2024: Wealth in Motion.”  UBS.com. https://www.ubs.com/global/en/wealthmanagement/family-office-uhnw/reports/billionaire-ambitions-report.html (accessed March 13, 2025).     More SML Planning Minute Podcast Episodes This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®.  The content provided is intended for educational and informational purposes only.  Information is provided in good faith.  However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.  The information presented is designed to provide general information regarding the subject matter covered.  It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation To help reach your goals, you need a skilled professional by your side.  Contact your local Security Mutual life insurance advisor today.  As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives.  For more information, visit us at SMLNY.com/SMLPodcast.  If you’ve enjoyed this podcast, tell your friends about it.  And be sure to give us a five-star review.  And check us out on LinkedIn, YouTube and X (formally Twitter).  Thanks for listening, and we’ll talk to you next time. Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice. 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