More than 15% of Singapore households are millionaires

Singapore has the highest percentage of millionaire households.

According to a study reported in the Financial Times, more than 15% of Singapore households are millionaires. No other country comes close (#2 Switzerland has less than 10% millionaires.) Singapore will soon have a million millionaires, out of a population totaling a mere 5 million. I expect the number of Singaporean millionaires to rise sharply in the next few decades. Recall that Singapore only recently became a very rich country (in income terms.) Given its high saving rates, the younger generation will get to a million dollars much quicker than the older generation. I’d guess that roughly half of Singaporeans in their 50s and 60s will be millionaires by 2040. And the younger generation at that time will hope and expect to get there someday.

Source: The Money Illusion

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Why a millionaire needs a bank loan?

A forwarded joke today:

Why a millionaire needs a bank loan? A lesson in creativity.

A Chinese walks into a bank in New York City and asks for the loan officer.

He tells the loan officer that he is going to Taiwan on business for two weeks and needs to borrow $5,000. The bank officer tells him that the bank will need some form of security for the loan, so the Chinese hands over the keys to a new Ferrari parked on the street in front of the bank.

He produces the title and everything checked out.The loan officer agrees to accept the car as collateral for the loan.

The bank’s president and its officers all enjoy a good laugh at the Chinese for using a $250,000 Ferrari as collateral against a $5,000 loan..

An employee of the bank then drives the Ferrari into the bank’s underground garage and parks it there.

Two weeks later, the Chinese returns, repays the $5,000 and the interest, which comes to $15.41. The loan officer says,

‘Sir, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away,we checked you out and found that you are a multimillionaire. What puzzles us is, why would you bother to borrow $5,000?’

The Chinese replies: ‘Where else in New York City can I park my car for two weeks for only $15.41 and expect it to be there when I return?’