Busted: Chinese wealthy growing fastest and 4 other myths about super rich

Did you believe that all super rich attend Ivy League universities or own private jets? Did you also assume that most of the wealthy people inherit their wealth? Well, here’s a surprise, they don’t.

Wealth-X, the world’s leading ultra high net worth (UHNW) intelligence and prospecting firm, in a special report released today debunks eight common myths about the super rich.

A UHNW individual is someone with a net worth of at least $30 million according to Wealth X. In 2013, there were 199,235 UHNW individuals - 0.003 percent of the world’s population; together they accounted for the equivalent of 38 percent of global gross domestic product at $27.7 trillion.

Here are some of the myths the report debunks:

1. They inherit all their money

If this is what you believed in, you’re in for a surprise. The Wealth-X report shows that only 19 percent of the global UHNW population fully inherited their wealth. As many as 65 percent made their wealth themselves and a further 16 percent inherited and grew their fortune through their own entrepreneurial endeavours.

2. Most of them are investment bankers

This is another misconception that most of us have. While it is true that the finance, banking and investment industry is the single largest category from which UHNW individuals have derived theirwealth, the report notes that only 19 percent are primarily engaged in that industry.

3. ‘Technopreneurs’ are all hoody-wearing college dropouts in their 20s

Thanks to Facebook founder Mark Zuckerberg, we think all ’technopreneurs’ will be in their 30s and college dropouts. That’s not true. The report notes that the average age for an UHNW individual from the technology industry is 54, and many of these individuals are highly educated.

4. To be rich, you have to go to an Ivy League University

No, you don’t. The report notes that a total of 7,000 of the world’s UHNW individuals - that’s just 3.5 percent - possess an Ivy League education (a degree from the top eight schools in the US). In fact, over 27,000 UHNW individuals, or 13.6% of the world’s total UHNW population, do not have a higher education at all.

5. Chinese wealthy growing faster than everyone else

The United States still has three times the billionaires of China, and Wealth-X forecasts that it will take over twenty years for Asia to overtake North America, let alone China. In fact, last year, both China’s UHNW population and wealth declined, and it remains only the second biggest Asian UHNW economy, behind Japan.

Last year, the fastest growing UHNW economies were: