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BEIJING, Nov 23 (Reuters) - China's Zhongzhi Enterprise Group, a leading wealth manager, told investors it is heavily insolvent with up to $64 billion in liabilities, threatening to reignite concerns that the country's property debt crisis is spilling over into the broader financial sector. The firm, which has sizable exposure to China's real estate sector, apologised to its investors in a letter that said it had total liabilities of about 420 billion yuan ($58 billion) to 460 billion yuan ($64 billion). The liabilities compared to Zhongzhi's estimated total assets of about 200 billion yuan, according to the letter, which was issued on Wednesday and was seen by Reuters. 'ENORMOUS' HOLESigns of trouble at the Zhongzhi group first came to light in July when Zhongrong International Trust Co, a leading trust company controlled by Zhongzhi, missed payments on dozens of investment products. "The Zhongzhi group deeply apologises for the losses caused to investors.
Persons: Zhongzhi, Xu, Xing Zhaopeng, Christopher Beddor, Beddor, Ziyi Tang, Ryan Woo, Sumeet Chatterjee, Muralikumar Organizations: Zhongzhi Enterprise Group, Reuters, International Trust Co, Big, ANZ, Thomson Locations: BEIJING, Beijing, Zhongzhi, China's, China
I asked financial planners where I could invest my money other than the stock market. Early last year, when I finally decided to invest some of the cash sitting idle in my high-yield savings account, I turned to the stock market. I've come a long way since then, optimizing my stock market strategy to include studying earnings reports and being more strategic with my picks. Real estateA good amount of my friends have turned to real estate investing over the past few years. "You can invest in real estate through REITs — Real Estate Investment Trusts — which pool together investor money to purchase, and sometimes operate, different forms of property.
Persons: , Jason Dall'Acqua, Carolyn Yun, Privately, Yun, Get, Marguerita Cheng, Cheng Organizations: Service, Investment, SEC, Venture Locations: REITs —
Activity is now at a 13-year low as rising borrowing costs take their toll on the US housing market. Mortgage rates have cleared 7.5% this year, driven higher by the Federal Reserve’s war on inflation. AdvertisementThe spike in mortgage rates dragged on the US housing market once again last month, as activity plunged to a 13-year low even as prices ticked up. Soaring mortgage rates, driven to their highest level since the turn of the century by the Federal Reserve's war on inflation, have fueled the housing-market slowdown. As a result, existing homeowners have opted to cling to the historically low mortgage rates they locked in over the last 15 years rather than move house.
Persons: , Freddie Mac, Lawrence Yun, Yun Organizations: National Association of Realtors, Federal, Service, Biden Administration, NAR
Sales of existing homes fell by 4.1% in October as a shortage of houses for sale and higher mortgage rates dampened activity, the National Association of Realtors said on Tuesday. The annual level of sales reached 3.79 million, down 14.6% from a year ago when sales were 4.44 million. “Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation,” said NAR Chief Economist Lawrence Yun. There is some relief, however, as mortgage rates have fallen in the past week. Some housing industry analysts believe rates could trend under 7% early next year as overall interest rates begin falling amid expectations the Federal Reserve is done raising rates.
Persons: , Lawrence Yun, ” Yun, , Danielle Hale Organizations: National Association of Realtors, Midwest, Federal Locations:
The October sales count is based on closings from contracts likely signed in August and September. At the end of October there were 1.15 million homes for sale, down 5.7% from a year earlier. Sales fell in all price categories up to $750,000, but there was an increase in sales of higher end homes. Yun also noted that there are more homes available for sale on the higher end of the market. First-time buyers represented 28% of October sales, unchanged from a year ago and still significantly lower than the 40% share they have represented historically.
Persons: Lawrence Yun, Yun Organizations: National Association of Realtors
Ron and Cristina, however, have around $30,000 in credit card debt, the couple recently told self-made millionaire Ramit Sethi on the Netflix star's "I Will Teach You to be Rich" podcast. "The two of you were so calm about this credit card debt, and it's because you don't understand the implications of this debt," Sethi told them. He is loath to spend money on things like dinner at a restaurant or the occasional vacation Cristina wants to plan. "Money is never simply a series of numbers on a page — it's contextualized within your culture, your upbringing, your risk tolerance, even your basic understanding of money," Sethi said. In talking with Sethi, Ron realized a lot of his hesitancy to spend money comes from his upbringing, since his father was afraid to spend money.
Persons: Ron, Cristina, Ramit Sethi, Rich, Sethi, spender, doesn't, haven't Organizations: Federal Reserve, Netflix Locations: Philippines
If two people save $100 a month for retirement, but one starts at 25 and the other at 35, the early saver will have nearly twice as much by age 65. Starting to save now, wherever you are in your timeline, is better than starting tomorrow or next week. Chris and Jennifer both invest $100 a month at a 5% annual compound rate of return. Chris begins investing at age 25, putting away $100 every month until 65 and Jennifer begins saving $100 a month at age 35. Saving in a tax-advantaged retirement account, such as an IRA or 401(k), can give your money an even greater boost.
Persons: , Jennifer, Chris, Andy Kiersz, Robinhood, Ameritrade, Hope isn't Organizations: Service, Business, Robinhood, supersavers
The typical HENRY — high earner, not rich yet — is 32, lives in a city, and makes six figures. The typical HENRY — or high earner, not rich yet — is an urban 32-year-old without kids, makes a six-figure income, and has lots of student debt. This is according to data on 1,500 clients shared with Insider from Stash Wealth , a financial advisor for HENRYs . Five HENRYs told Insider they're saving upwards of 40% to 70% of their income each year. Given many HENRYs got an undergraduate degree, with some pursuing doctorates, student loans are particularly elevated, as the average HENRY student loan balance comes in at $80,000.
Persons: HENRY, HENRYs, , HENRY —, Priya Malani, Savannah White, She's, White, Gen, Sherry, Zer, Malani, Sarah Baus, it's, Baus Organizations: Service, HENRYs, Shash, Federal Reserve's Survey, Consumer Finances, Bank of America Institute, Olive, SC Locations: New York City, Los Angeles, Savannah, Charleston
"The way this plays into estate planning or investing is we don't do it. We're not rich enough to do estate planning. I'm not wealthy, I'm not rich," Katz says. "It's a distorted view that we have around money that causes us to make poor decisions," Katz says. A suite of estate planning documents, which often includes a will, a health-care directive, and financial and health-care powers of attorney.
Persons: I'm, Katz, they're, Ali Katz, Jeff Bezos, Elon Musk, that's Organizations: Wealth Planning, Economic
Advantages to opening multiple savings accountsOne benefit of opening multiple savings accounts is that you can save money for specific goals. Traditional savings accounts at a brick-and-mortar bank typically offer lower savings account interest rates than high-yield savings accounts at online banks. Disadvantages to opening multiple savings accountsOpening up multiple savings accounts also comes with several potential disadvantages. Tips for managing multiple savings accountsIf you decide to open multiple savings accounts, here are some tips for managing them:Keep track of your accounts. Multiple savings accounts: FAQsIs it OK to have multiple savings accounts?
Persons: Mike Landsberg, Homrich, it's, Jaime Eckels, Plante, Roth IRAs, Eckels, who's, Landsberg, Banks, Get Organizations: CPA, CFP, CPWA, Homrich Berg Wealth Management, Financial, FDIC, SEC, Bank Locations: Landsberg, Chevron
watch nowToo often, people are encouraged to be fearless, according to personal finance expert Farnoosh Torabi, but fear is a valuable tool, particularly when it comes to building wealth. The following two steps can help you harness fear to build wealth. Women are also more likely to live paycheck to paycheck and consider themselves financially fragile, a separate report by Varo Bank found. Torabi, who said she's wrestled with her own relationship with fear as a young adult, advises playing out the worst-case scenario. "If you are afraid of a recession, better to think about what might happen if you lost your job," she said.
Persons: Farnoosh, Torabi, she's Organizations: Varo Bank Locations: Northwestern
There’s a conundrum that economists and political strategists have been chewing on for more than a year: The economy is good, but Americans say it’s lousy. Just 2% of voters say the economy is excellent, according to a New York Times-Siena College poll. But there’s a conundrum within the conundrum, which is that, despite what Americans say, they are not behaving like a people particularly worried about the economy. That’s why Americans are pulling money from their 401(k)s at an alarming rate to pay the bills. For young people living paycheck to paycheck, the dream of homeownership (and the financial security that comes with it) feels frustratingly out of reach.
Persons: CNN Business ’, Bidenomics, Taylor Swift, they’re, It’s, Jay Powell, it’s squishy, don’t Organizations: New, New York CNN, CNN Business, New York Times, Siena, Starbucks Locations: New York, pollsters
If you have all or most of your money in a single investment account, you're missing opportunities to build wealth. If you're serious about building wealth, there are seven types of accounts you need to have to make it happen. If you're making estimated quarterly tax payments, you'll need to accumulate funds in your tax savings account as you earn them. Note that a "tax savings account" is not a different banking product — it's just a designated use for a savings account, like an emergency fund would be. (Like the tax savings account, this isn't a different product your bank offers — it's a specific use for an account like a high-yield savings account.)
Persons: , Ally, Charles Schwab, it's, you'll, Roth, you've, It's, Robinhood, That's, We're, There's, I've, multimillionaires, Read Organizations: Service, Roth IRA, Roth, IRA
Reading List: Scams and Scammers
  + stars: | 2023-11-08 | by ( Amanda Taub | ) www.nytimes.com   time to read: +2 min
In financial frauds, the core promise is always essentially the same: profit without risk. But the details of how that promise gets packaged are telling. Madoff and Holmes profited by promising wealth and validation to elites who feared that not having enough of one meant they couldn’t really have the other. Bankman-Fried, by contrast, seems to have invented himself as the fulfillment of a very different desire: success outside the bounds of powerful institutions. In retrospect it was a perfect pitch for cryptocurrency speculators who wanted to believe that they, too, could make a fortune without any traditional financial background or connections.
Persons: Bernie Madoff’s, Elizabeth Holmes, John Carreyrou, meritocracy, Madoff, Holmes, Zeke Faux Organizations: Apple Locations: Silicon, America, cryptocurrency
MADRID (Reuters) - A new wealth tax introduced by Spain as part of measures aimed at easing the cost of living of ordinary Spaniards amid high inflation was endorsed by the Constitutional Court, it said on Tuesday. The court rejected an appeal lodged by Madrid region which considered the levy infringed its regional prerogatives, the court said in a statement. The levy raised more than 600 million euros this year, according to the Budget Ministry. Government spokesperson Isabel Rodriguez said the tax was important to achieve what she called a "fair taxation". Acting Prime Minister Pedro Sanchez is negotiating with separatist Catalan parties to get their support for another term after inconclusive elections on July 23.
Persons: Madrid, Isabel Rodriguez, Rodriguez, Pedro Sanchez, Emma Pinedo, Inti Landauro, Ed Osmond Organizations: Constitutional, Budget Ministry, Government Locations: MADRID, Spain, Madrid, Miami, Catalan
Morgan Stanley’s new CEO inherits rich pickings
  + stars: | 2023-11-02 | by ( John Foley | ) www.reuters.com   time to read: +7 min
A good place to start is outside Morgan Stanley’s home market. Morgan Stanley’s two last big acquisitions were chunky, at a combined $20 billion, but also filled niches. E*Trade, an online brokerage, brought millions of households and company employees that Morgan Stanley hadn’t previously served. Eaton Vance, a U.S. asset manager, peddles investment products that Morgan Stanley now funnels through sales teams in far-flung markets. CEO Jane Fraser shows no inclination to sell private banking, which for now sits within the group’s $756 billion global wealth management bucket.
Persons: Ted Pick’s, Morgan Stanley, Pick, James Gorman, Morgan, Gorman, Germany’s, Britain’s, Morgan Stanley’s, Morgan Stanley hadn’t, Eaton Vance, Smith Barney, watchdogs, Jane Fraser, It’s, Noel Quinn’s, Ping, Colm Kelleher, Ted Pick, Peter Thal Larsen, Thomas Shum Organizations: Reuters, Credit Suisse, McKinsey ., Morgan, Reuters Graphics Reuters, Infrastructure, Citi, U.S, HSBC, HK, UBS, Thomson Locations: U.S, American, Asia, Pacific, Japan, India, China, French, Europe, Switzerland, HK, Swiss
Median net worth for the 80th-90th income percentile saw net worth gains of 69% from 2019 to 2022. AdvertisementAdvertisementIt's not just the top 1% that's getting richer — over 16 million American families now have a net worth over $1 million. The analysis further noted how nearly eight million families have wealth over $2 million, compared to 4.7 million in 2019. Meanwhile, the average net worth rose to over $1 million, though this is skewed by extremely wealthy Americans. Upwards of 40% of millionaire families aged 55 or above are headed by a college graduate.
Persons: Organizations: Service, Wall, Federal Reserve's Survey, Consumer, WSJ, Fed, Commerce Department
Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Then, know why you're investing, and understand the risk involved in any investment you make. As a certified financial planner, I speak with countless people who are new to investing. Whether you're a beginner or you've been investing for some time, watch out for these common investing mistakes. Before you dive in, be sure to cover the basics, understand the risk, and most importantly, have a plan.
Persons: , you've, Roth, Roth IRAs, doesn't Organizations: Service
It's an old Silicon Valley philosophy packaged anew: Growth without guardrails. Silicon Valley enters the age of e/accAndreessen and other prominent Silicon Valley figures such as Y Combinator president Garry Tan have quietly added the term e/acc to their social media profiles. In his manifesto, Andreessen calls it "techno-optimism." To some extent, it's a repackaging of what Silicon Valley has always peddled — let us build, grow, and make money without limitations. "Techno-optimists believe growth is progress," Andreessen argues, adding that growth is driven by the progress of technology without hindrance.
Persons: Marc Andreessen, , Andreessen, Andreessen Horowitz, Andy Warhol, Milton Friedman, Prometheus, Y, Garry Tan, pesky ethicists, Carl, Benedikt Frey, Frey Organizations: Service, Silicon, acc Andreessen, acc, Netscape, Oxford Internet Institute Locations: Silicon Valley, digressions, OpenAI
Editor's note: Morgan Stanley announced on October 25 that Ted Pick would replace James Gorman as CEO. Employees knew they were getting promoted if Pick told them to wear a tie the following day, an ex-managing director recalled. While Morgan Stanley currently trades at a premium among its Wall Street peers, its enviable success isn't thanks to Pick. Gonzalo Marroquin/Patrick McMullan via Getty Images Show less Morgan Stanley investment management head and dark horse in the race for CEO, Dan Simkowitz. Despite enjoying the stock price gains under Gorman's reign, plenty of longtime employees want another dyed-in-the-wool Morgan Stanley loyalist, according to a former senior executive.
Persons: Morgan Stanley, Ted Pick, James Gorman, Pick, Gucci loafers, Blackstone, Tony James, Morgan, Gorman, Andy Saperstein, Dan Simkowitz, John Mack, Ted, James, Phil Purcell, Mack, Purcell, Merrill Lynch, Paul Taubman, Colm Kelleher, coheads, Gonzalo Marroquin, Patrick McMullan, Saperstein, Euromoney, Parker Gilbert, He's, John, cohead, Bolu, Goldman Sachs, Pablo, tony, Betsey Kittenplan, Smith Barney, James cochairs, Jim Breyer, Anna Wintour, John Mack pranking Pick, John Waldron, I'm, Howard Marks, Bill Parcells, atta, Brian Moynihan, aren't, David Solomon, Jamie Dimon's, Eaton Vance, he's, you've, Richard Drew, , Hayley Cuccinello Organizations: Employees, Archegos Capital Management, Blackstone, McKinsey, Getty, Middlebury College, China Construction Bank, Harvard Business School, Mitsubishi, Wall, Autonomous Research, Anguilla, Agricultural Bank of China, Capital Management, Metropolitan Museum of Art, Vogue, New York Rangers, Oaktree Capital Management, Bloomberg, Staten, Disney, JPMorgan, Trade, AP Locations: China, Beijing, Manhattan, New York City, Caracas, Venezuela, Brookville, tony Long, hcuccinello@insider.com
SHANGHAI, Oct 23 (Reuters) - E-commerce giant Alibaba Group (9988.HK) said it will be offering huge discounts as it gears up for its annual Singles Day shopping extravaganza - an indication that Chinese consumer confidence remains at a low ebb. The event - which begins on Tuesday and despite its name now stretches over several weeks - will offer over 80 million products at their lowest prices this year, it said in a statement. Tmall will also compare prices on products in real time with other e-commerce platforms in China and tag products with the lowest price, it said. Alibaba did not disclose how much in subsidies and coupons it plans to offer in total this year but added that Taobao and Tmall had committed an "unprecedented" amount of investment. The company last year did not announce the sales tally for the event for the first time, saying only that the total amount was in line with 2021.
Persons: Alibaba, Tmall, Xi Jinping, Brenda Goh, Edwina Gibbs Organizations: Alibaba, HK, Communist Party, Thomson Locations: SHANGHAI, China
Governments should open a new front in the international clampdown on tax evasion with a global minimum tax on billionaires, which could raise $250 billion annually, the EU Tax Observatory said on Monday. Currently billionaires effectively pay far less personal tax than other taxpayers of more modest means because they can park wealth in shell companies sheltering them from income tax, the group said in its 2024 Global Tax Evasion Report. Although the end of banking secrecy and the corporate minimum tax have largely put an end to decades-long competition between countries on tax rates, numerous opportunities remain to reduce tax bills, the report said. For example, the rich increasingly park wealth in real estate instead of offshore accounts while companies can exploit loopholes in the 15% corporate tax minimum. Meanwhile, governments are increasingly competing for investment through subsidies rather than competing only on low tax rates, the Observatory said.
Persons: Gabriel Zucman, Joe Biden’s, ” Zucman, Zucman Organizations: EU Tax, Paris School of Economics, Locations: United States, France, Washington
NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. "Entrepreneurship can get overglamorized," said Tyler Wright, who left a sales job to build a personal finance brand and coaching business. "You have to manage yourself better and differently because you're working a job and you're trying to get something else off the ground, but you don't have to do it." Now, "I'm the CEO, I'm the CFO, I'm the head of content, I'm the head of accounting, I'm the head of everything," he continued. "When you're working for yourself, you're responsible for making the product, planning the product, marketing the product, maintaining your studio, training your assistant.
Persons: , Tyler Wright, there's, Wright, Phil Thompson, Mike Gardon, Thompson, Ludomir Wanot, Katie Lauffenburger, Steph Gordon, Den Mathu, Den, Gordon, it's, Adah Fitzgerald, Lauffenburger, Katie McCarron, we've, I'm Organizations: Service, Entrepreneurship, Amazon, Evergreen Housing Network, Wonder, Portland Pet Food Company Locations: America, Toronto, Portland
PARIS, Oct 23 (Reuters) - Governments should open a new front in the international clampdown on tax evasion with a global minimum tax on billionaires, which could raise $250 billion annually, the EU Tax Observatory said on Monday. Currently billionaires' effective personal tax is often far less than what other taxpayers of more modest means pay because they can park wealth in shell companies sheltering them from income tax, the group said in its 2024 Global Tax Evasion Report. In the absence of a broad international push for a minimum tax on billionaires, Zucman said a "coalition of willing countries" could unilaterally lead the way. Although the end of banking secrecy and the corporate minimum tax have put an end to decades-long competition between countries on tax rates, numerous opportunities remain to reduce tax bills, the report said. For example the rich increasingly park wealth in real estate instead of offshore accounts while companies can exploit loopholes in the 15% corporate tax minimum.
Persons: Gabriel Zucman, Joe Biden's, Zucman, Leigh Thomas, Hugh Lawson Organizations: EU Tax, Paris School of Economics, Thomson Locations: United States, France, Washington
They're looking to nearby smaller cities in South Carolina, North Carolina, Georgia, and Tennessee. They're picking places like Knoxville, Tennessee; Greenville, South Carolina; Huntsville, Alabama; and Asheville, North Carolina; which she collectively refers to as "the Villes." AdvertisementAdvertisementWhy CEOs moved their lives — and their businesses — to FloridaWall Street moved to South Florida in droves in 2020 and 2021. Billionaire hedge-fund CEOs — like Citadel's Ken Griffin — paid record-shattering amounts for South Florida homes , added offices, and moved their businesses there entirely from New York, Chicago, and Silicon Valley. They bought a 2,400-square-foot, four-bedroom home on an acre of land for the same price in Greenville, South Carolina.
Persons: , There's, Nicole Panesso, Holly Meyer Lucas, Meyer Lucas, Ken Griffin —, Brian Guzman, Guzman, Jonathan Miller, Ken Griffin, PATRICK T, FALLON, It's, Larry Ellison, Miller, Michael Bordenaro, Greg May, Marcia Straub, Keller Williams, Jill Cody, she's, Ryan Wilson, Jami, Alexander Spatari, Jami Wilson Organizations: Service, Sunshine State, Census Bureau, Orlando, Coral, Fort Myers, Florida Wall, Billionaire, Guzman Advisory Partners, Getty, West Palm Beach, Florida Atlantic University, Silicon, Oracle, South, South Florida metros, Fortune, Miami, Homes, Army Locations: Florida, Greenville, Knoxville, South Florida, Chattanooga , Tennessee, South Carolina, North Carolina , Georgia, Tennessee, Knoxville , Tennessee, Greenville , South Carolina, Huntsville , Alabama, Asheville , North Carolina, Realtor.com, Asheville, Miami, Gulf Coast, New York, Chicago, Silicon, West Palm, Fort Lauderdale, Palm Beach, Texas, North Carolina, Greensboro, Fort
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