There are many definitions of “wealth” but most of the time, at least in the industralized nations, we refer to wealth as one’s tangible assets. And the Securities & Exchange Commission (SEC) has provided their definition with a new ruling on what wealth is to restrict hedge fund investing by Americans.

Until this new ruling, you were considered rich if you had a net worth of at least $1 million, which included the value of your primary residences, or an annual income of $200,000. And some 8% of total households in the U.S. worth of $1 million or more, when home equity is included.


The new definition of wealth, according to the SEC, says you now must have $2.5 million of investible assets, excluding equity in any homes or business (to be eligible to invest in a hedge fund).

This new definition, a net worth of $2.5 million (excluding home and business equity) applies to just 1% of the American population.

These definitions for some 2 billion people around the globe who are living on $1.50 a day ($50 a month) cannot even be envisioned. For them wealth is seen much differently. They believe most everyone in the industralized world is wealthy.

See, their definition of wealth if far different than ours…wealth to them is clean drinking water, enough food for two or three meals a day, having a roof over their heads, and access to medical services when needed.

Be grateful for what you have…it is likely you are very wealthy.

This entry was posted on Thursday, June 7th, 2007 at 4:03 pm and is filed under Global Environment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.