The world's billionaires, expected to become trillionaires

Elon Musk could become the world's first trillionaire by 2027, according to a recent report by Informa Connect Academy, cited by visualcapitalist.com. The report shows the projected path for the Tesla CEO and other billionaires to surpass the trillion dollar (net worth) mark. Informa analyzed data related to the net worth of the 30 richest people from 2017 to 2024, based on Forbes figures, and calculated its average annual growth rates, releasing forecasts of their wealth over the next 30 years. Thus, the quoted source estimated the moment when these people can enter the category of trillionaires.

• Musk has competition

With a net worth of 242 billion dollars and an average annual growth rate of more than 100%, the American Elon Musk, the owner of the Tesla and SpaceX companies, is on his way to becoming the first trillionaire by 2027, according to the quoted source. It notes that the recent boom in American computer chip maker Nvidia could propel its CEO and co-founder Jensen Huang to trillionaire status by 2028. Huang's current net worth is already around 100 billion dollars (higher than shown in the adjacent chart, which uses data from July), according to Bloomberg's real-time algorithm.

According to Informa, Indian billionaire Gautam Adani is also expected to become a trillionaire by 2028. His current net worth is $84 billion. Gautam Adani is the chairman of the Adani Group, which has holdings in ports, airports, power generation and transportation and green energy, among others.

Indonesia's Prajogo Pangestu, the son of a rubber merchant, is poised to become a potential trillionaire by 2028. Pangestu, with a fortune of $43 billion, got into the timber business in the late 1970s and now runs the largest integrated petrochemical producer from Indonesia.

The list of future trillionaires also includes household names such as Meta CEO Mark Zuckerberg ($177 billion today), former Microsoft CEO Steve Ballmer ($121 billion), and Nike founder Phil Knight ($41 billions of dollars). All three are expected to reach $1 trillion between 2030 and 2034.

French businessman Bernard Arnault is the only European on the list, expected to become a trillionaire in 2030. Current wealth - $233 billion. The billionaire chairman and CEO of global luxury goods company LVMH oversees dozens of luxury brands, including Louis Vuitton, Sephora and Tiffany & Co. He also invests in companies such as Netflix and ByteDance, the parent company of TikTok.

Mukesh Ambani - Reliance Industries India, $116 billion today, and Michael Dell - Dell USA ($91 billion) are still expected in the trillionaire club by 2034.

• Northwestern Mutual: Almost 70% of American millionaires do not feel rich

Even millionaires say they don't feel rich in the current economic conditions. According to a recent survey conducted by Northwestern Mutual, cited by investopedia.com, only about a third (32%) of high-net-worth individuals (HNWI) in America, i.e. those who have liquidity available for investments of at least one million dollars, they are considered rich. Advisers who work with HNWI clients say this is caused by increased discretionary spending as the individual makes more money.

"The problem is that as clients consolidate their incomes, their expenses also increase," said Eric Roberge, founder of Beyond Your Hammock, which works with clients in their 40s with net worths between $3 million and $5 million. dollars. He adds: "Whether they earn $50,000 initially or more than $500,000 as a family, they still struggle to save, afford the home they live in, provide childcare and go to college. The expenses are thus higher".

According to the cited source, the calculations look different depending on the area where HNWIs live and the cost of living. In areas with a higher cost of living, higher wages may not go very far. For example, many workers in Silicon Valley may have higher net worth but face higher housing costs than similar workers in other parts of the country, says Anna Sergunina, president and CEO of MainStreet Financial Planning.

"I might have a client who makes $300,000 as a household, which is a lot. But, in the Boston area, the high cost of living consumes this money", emphasizes Eric Roberge.

Also, many clients who have just crossed the $1 million HNWI threshold may not realize it or actively talk about it, says Sergunina, explaining: "That's probably what happens and because their aggregate net worth, including retirement accounts, brokerage accounts and even real estate assets like a home, could top the $1 million mark just on paper."

• Pensions and taxes - the main financial concerns of millionaires

Clients with less than $1 million in assets are typically more concerned about running out of money in retirement, says Greg Giardino, vice president and financial advisor at Wealth Enhancement Group. Those closer to a million but above that threshold also worry, but those concerns diminish as their net worth rises.

In the cited survey, wealthier respondents have higher rates of retirement preparedness and knowledge about their finances: 87 percent of HNWIs said they feel financially prepared for retirement, compared to 54 percent in the other category.

Roberge says taxes on retirement savings are an important topic among his HNWI clients, especially since many receive compensation in the form of bonuses and equity, which is ownership in the company for employees of a company.

"Clients with higher net worths are worried about taxes. It's hard to pay the right amount of taxes automatically through your paycheck every year and not get hit with that big tax bill," concludes Roberge.