Category: Money Makes The World Go Round

Did you ever order a bottle of Cristal in a swanky New York nightclub and nearly had a seizure when the bill came? If so, you better be sitting down. A bottle of 1945 Burgundy wine is now the most expensive wine in the world when recently sold at Sotheby’s for a grape-crushing $558,000 (£424,000).

1945 was a great year unless you were Eva Braun or Adolf Hitler or on board the USS Indianapolis sunk by a Japanese submarine. Then it was a stinker of a year. But it turns out, that for wine aficionados, 1945 takes the cake.

Record-Breaking 1945 Burgundy Wine

As Europe was trying to rebuild itself in the aftermath of WWII, one of France’s most prolific winemakers, Burgundy producer, Romanee-Conti created 600 bottles of wine, some of which have recently become the most expensive bottles of wine in history.

On October 13 at Sotheby’s in New York, two of those bottles sold separately for a combined total of just over $1 million. This was on the back of three 1937 vintage bottles that also sold for close to $930,000 at the same auction.

Before these five bottles became the most expensive wine in history, the original record was a six-liter bottle of Cheval Blanc 1947 that sold for $304,375 in Geneva in 2010.

The record-breaking sales of the two bottles of 1945 Burgandy wine also dwarfed the previous record for a standard size bottle, which sold for $233,000 in Hong Kong back in 2010.

When talking about the 1945 vintage, the head of Sotheby’s international wine department, Serena Sutcliffe, was very upbeat, saying:

“Rare and wonderful. The best bottles are so concentrated and exotic, with seemingly everlasting power – a wine at peace with itself.”

The first bottle sold for $558,000, and just a few minutes later the second bottle was sold for $496,000.

The wine wasn’t the only rare alcohol that was sold at the auction. A bottle of 60-year-old whiskey from 1926 fetched a heart-stopping $841,000. Although, this still failed to break the record for the most expensive bottle of Scotch which is currently at approximately $1.2 million.

If you ever get the chance to sample a glass of 1945 Burgundy wine at a high-society party or as your last request before the electric chair, make sure you take the chance with both hands.

Featured Image from Sotheby’s.

As part of the Tax Reform 2.0, the House passed the Family Savings Act of 2018, a proposal meant to help people:

“save more and earlier throughout their lives by expanding access to new and existing savings vehicles.”

Great idea! But the sad reality is that this law is still woefully far from representing where most Americans are right now.

The House and the Senate need to find a way to accommodate the Family Savings Act with the RESA (Retirement Enhancement and Savings Act) by the end of this year.

Contributions up to $2,500 a Year

The Family Savings Act encourages savings, at a time when most Americans are struggling to preserve wealth. In fact, the numbers are alarming: 57% of Americans have less than $1,000 in their savings accounts. Moreover, 40% of all citizens have no savings at all.

As a component of the new bill, taxpayers have more disposable income. They can create a universal savings account and contribute up to $2,500 every year.

The good news is that once you have this account, you can withdraw the funds tax-free for any use. And you won’t pay any penalty, regardless of when you decide to take the money out of your account.

The Tax Reform 2.0 bill changes the section 529 Education Savings Plans as well. You can use tax-exempt distributions to pay for higher education expenses, which can include books, supplies, participation in an apprenticeship program, and even homeschooling expenses, (no, sadly, luxury travel and fine dining don’t count).

An Improvement to Retirement Plan Rules

The Family Savings Act in 2018 also looks to expand and preserve retirement savings accounts. If you have less than $50,000 in your eligible retirement plans, Title I of the bill releases you from the required minimum distribution rules.

The new bill also allows employees to transfer their 401(k) annuity (or similar plan) to an IRA without paying taxes. However, taxpayers should know that this change is permanent from this year on, so they can’t then go back and change the characteristics of their IRAs.

Another crucial change involves penalty-free withdrawals from retirement plans to cover new child-related expenses. If you adopt or give birth to a child, you can use the money in the 403(b), 457(b) or IRA to pay your expenses, with the chance of reintegrating the funds in the future.

The short-hand? The Tax Reform 2.0 isn’t going to make any drastic changes to your life. But it might encourage you to save for a rainy day or get back into higher education. Just think of all those “educational” expenses you can write-off now.

Featured image from Shutterstock.

Most people will think that $5,000 per night for a luxury hotel suite is beyond reproach. But when you’re filthy rich and don’t give a damn what people think, even $75,000 per night is within budget. That is exactly what you can expect to spend for a single night in The Mark Hotel Penthouse Suite in New York.

Being a multi-millionaire or billionaire gives you the opportunity to sample aspects of life that others can’t even contemplate. Whether it’s dining on endangered species, owning Egyptian artifacts that go back to the times of the Pharaohs or purchasing your own island, a billionaire’s life is a life of untold choice.

The Mark Hotel Penthouse Suite Is the Most Expensive in America

America is home to the big, bold, and brave. And also one of the most expensive luxury hotel suite experiences on the planet. A night in The Mark Hotel penthouse suite in New York will set you back $75,000.

Situated in the prime Upper East Side of the city, known for its grandeur, glitterati and glamor, the building where the Mark Hotel penthouse suite resides was first constructed in 1927.

The hotel enjoyed major renovations in 2006 and 2009 and although the historical exterior of the building was untouched, the interior design was completely overhauled.

The new interiors were created by the lauded French designer Jacques Grange, conjuring a timeless and stylish atmosphere that is lavishly luxurious and favorably flash.

10,000 Square-Foot of Total Decadence

The penthouse is nestled across the 16th and 17th floors and encompasses 10,000 square-feet that includes a majestic 2,500 square-foot rooftop terrace with immense views of Central Park.

The luxury Mark Hotel penthouse suite comes equipped with five bedrooms, six bathrooms, a conservatory, library lounge, stately dining room, two wet bars and four awe-inspiring fireplaces that give the suite real decadence.

Bloomberg’s Chris Rovzar talked about the suite on the “Bloomberg Daybreak: Americas” segment and said that the owners of the hotel set the $75,000 per night price tag because they saw another luxury hotel suite in America for $37,000 per night and thought their penthouse was worth twice as much.

If you’re a self-respecting millionaire or billionaire looking for somewhere to lay your head in the heart of Upper East New York, why not stay in the most expensive luxury hotel suite in America? You’re one of a very select few who can afford it.

Featured image from The Mark Hotel.

Nothing says “I am filthy rich” like buying Britain’s most expensive millionaire pad. If you had a spare $210 (£160) million laying around or stashed in a Walter White-style hole in the desert, you could have been the owner of the flashiest and most expansive property in the United Kingdom. But not any longer.

A lavish penthouse apartment in one of the swankiest parts of London has just been sold for a cool $210 million. The property sale has garnered a great deal of attention in the local and national media and amongst the growing litany of young and trendy multi-millionaires and billionaires that now make the metropolis their home.

Swanky Millionaire Pad in Knightsbridge

The penthouse is a prestigious One Hyde Park property, in the high-class and breathtakingly swank Knightsbridge area, just a stone’s throw from Chelsea’s Stamford Bridge. Chic, sleek, flash, prestigious, exclusive and expensive are just a few words to describe this stunning property. But is any home worth $210 million? Apparently so.

Nestled in a prime high-end shopaholic location just meters from Harrods and Harvey Nichols and next door to the 5-star Mandarin Oriental Hotel, the penthouse is taking the phrase “conveniently located” to the next dimension.

The Knightsbridge millionaire pad is spread over two floors and comes equipped with not one, but two wine cellars, which will tickle the fancy of even the most pretentious fermented grape consumer. There are two balconies looking majestically across Hyde Park offering first-rate elevated views of aging Tai Chi practitioners and cosmopolitan dog-walkers.

The extravagant interiors scream decadence with dominating chandeliers, authentic oak floors and even bulletproof windows for the security conscious and paranoid schizophrenics.

The SAS-trained security guards are on hand to deal with any undesirables unlawfully entering the property or to take out passing Hyde Park joggers with a sniper rifle.

Exclusive One Hyde Park Development

One Hyde Park is easily one of the most exclusive property developments in the world, purchased by the Candy Brothers in 2007. They initially bought the land for £150 million ($195 million) three years earlier and then went on to construct the 86-apartment complex in one of the most prime real estate spots imaginable. Tens of millions of pounds routinely change hands as the apartments are continually bought and sold.

The buyers of the most expensive millionaire pad in the UK are remaining under the radar. Although it is known that the property was purchased in the name of two offshore holding companies on the tax haven island of Guernsey. Although the sale initially happened in May, the full details are only now coming to light.

Featured image by Rob Deutscher.

If you were after an in-depth analysis of the latest interest rate hikes from the US Federal Reserve, you won’t get one asking Donald Trump. “I think the Fed has gone crazy,” he said, stepping off of Air Force One. And in case you thought he might want to retract the statement, he then repeated it.

Which leads to an interesting question. If the Fed has indeed lost its mind, does that mean that Fed Chair Jerome Powell is also insane? And if he is, should he be allowed to hold a seat of that magnitude?

Mr. Trump has voiced his disapproval over rising interest rates for some time now, accusing them of going too fast with interest rate increments. Back in July, he told CNBC:

“I’m not thrilled about it… We go up and every time you go up they want to raise rates again… I am not happy about it. But at the same time, I’m letting them do what they feel is best.”

Yesterday, on the back of the worst trading day in the US stock markets in months, Trump wasn’t quite so diplomatic:

“I think the Fed is making a mistake, they’re so tight. I think the Fed has gone crazy.”

He then repeated that sentiment a few seconds later.

This Wednesday saw the worst day of selloffs for the S&P 500 since February, the worst for the Nasdaq since the Brexit vote, and caused the Dow Jones Industrial Average to drop more than 800 points.

Should the White House Interfere with the US Federal Reserve?

The Federal Reserve raised short-term interest rates for the third time this year last month, indicating that plans are to continue slowly with the push. In fact, there are plans for a further rise at the end of this year, followed by three more increments in 2019.

Is it normal for a US president to comment on decisions made by the Fed? No. Especially since the bank is meant to be entirely free from political pressure. But then, there’s nothing normal about the 72-year-old man currently holding office in the White House. Mr. Trump is certainly not known for holding back when it comes to giving his opinion.

The US president feels that rising interest rates are in conflict with his goals of making America great again. High interest rates affect the strength of the dollar and could potentially force the growing American economy to slow down.

However, Trump’s lambasting of the Fed’s decision, calling it “crazy,” has to make you wonder. If that’s really the case, what is the world’s most powerful economy doing with a crazy person at the helm? Now there’s a question that’s been posed before.

In a later statement on Wednesday by White House press secretary, Sarah Sanders, she said that even after Wednesday’s selloffs, “the fundamentals and future of the US economy remain incredibly strong.”

Featured image from Shutterstock.

If you’re fed up of having to travel with the herds of unwashed masses from cattle class, relax. If Singapore Airlines get their way, long-haul travel will only be reserved for the wealthy. Starting out with the world’s longest flight from Singapore to New York, the record-breaking 10,400-mile trip won’t include economy seats. Thank goodness for that.

In an age where telecom technology is constantly getting better, physically moving oneself from place to place remains a miserable experience. Passengers are forced to rub elbows with complete strangers and have their knees pressed up against the seat in front. Not anymore.

The Singapore Airlines A350-900 Ultra Long Range aircraft will bring back the class and style to flying that’s been missing ever since “low-cost” became the mantra and you had to pay to add a suitcase to your ticket price. It appears that even amid rising oil prices and dwindling airline profits, you can give your customers a 5-star experience after all.

Champagne and Lobster

Technology is advancing even in the logistics world and it seems that new aircraft that guzzle less fuel than their earlier counterparts are making the 18-hour, 45-minute flight route viable again. Without inviting the paupers.

Singapore Airlines already received the first of seven Ultra Long Range Airbus A350-900 last month. These will be used for the Singapore to New York route and also for their upcoming Los Angeles to Singapore flight.

And you won’t have to expect to be couped up like a chicken on the plane either. There’s a maximum of 161 passengers featuring 67 flat-bed seats and 94 premium economy seats at the rear (naturally).

Passengers will also be able to select their meals from the airline’s Wellness Set menu including prawn ceviche, lobster thermidor, and rib-eye steak. They’ll also be able to pay for WIFI on the flight and have access to over 200 hours of movies and TV Shows.

Sleeping Pilots

Those who wonder how the pilot will make it through 20 hours of flying time needn’t worry. There are four pilots on the flight and they’re not allowed to fly unless they haven’t flown for at least 48 hours before getting on board. They’ll also be granted at least eight hour’s sleep, compared to the usual 5.5 on a typical long-haul service.

The dimensions of the plane lend themselves nicely to the claustrophobic as well. With high ceilings, larger windows, and a wider body, there’s more room to breathe on the Singapore Airlines flight. There’s also less noise in the cabin thanks to the notable lack of cattle in the back (and also due to the noise reduction technology). LED lighting will reduce jet lag as well.

Is Singapore Airlines Setting a Precedent?

With other major airlines already in the race to outperform the Asian airliner, will Singapore Airlines set a precedent? Can we expect planes of the future to come equipped with gyms, play areas, restaurants, and cabaret? Perhaps. But one thing is for sure, with the trend back on stylish travel, you’d better start saving quick. Long haul flights could soon be just for the wealthy.

Featured Image from Shutterstock.

A near 10-year period of low to almost-zero global interest rates is ending, according to experts. That means it’s time to watch credit fees and borrowing a little more closely as rate hikes filter through. For those with cash in the bank, it could also be time to search for a better rate of return.

According to a Bloomberg report on Tuesday, average global interest rates across all developed economies have risen to over one percent for the first time since 2009. This follows the US Federal Reserve’s interest rate rise last week.

It’s the USA that’s leading the charge, where interest rates currently sit at 2.25 percent after the latest increase. Interest rates have also risen in Indonesia, the Czech Republic, Hong Kong, and the Philippines. The increases across these five countries in one week is the most in any week since 2001. Conversely, rates are still hovering at near-zero in the rest of Europe and Japan.

Bloomberg’s conclusion is drawn from JPMorgan and Natwest Markets’ global economy gauges and comes nearly 10 years after the global recession triggered by the collapse of Lehman Brothers Holdings, Inc.

The Impact of Rising Global Interest Rates

For individuals, rising global interest rates mean the cost of lending, mortgages, credit cards, overdrafts, and other borrowings could rise. That means it could be time to watch these financial products and their rates closely. Shop around for the best rates, and consider extra repayments.

For the US, an analysis by WalletHub in a consumer impact report by CNBC estimates that credit card users will pay an extra $1.6 billion in charges in 2018, based on even a 0.25 percent interest rate increase.

“The best thing that cardholders can do is make the rate hike a moot point by paying the balance in full every month so all of these rate hikes are a non-issue,” said Matt Schulz, an analyst at CompareCards.

Longer-term lending like adjustable-rate mortgages will see an impact too. Although, this could be delayed if interest rates on these products are calculated annually.

USA Today and Bankrate.com predicted that monthly repayments on a $200,000 mortgage could increase from $84 to $112 with four quarter-point hikes from the US Federal Reserve. On this basis, a $400,000 mortgage and four quarter-point increases, would see borrowers paying an extra $672 in interest annually.

To give you some context, in the past couple of years, there has been a total of eight quarter-point increases in the US.

Interest rates on savings products could also rise if these rate increases are positively passed on by banks. This doesn’t always happen and can happen more slowly. The impact on borrowers is usually felt much more quickly.

However, savers could see products with better rates appear on the market. For them, it could be time to shop around for a better return on their investments.

Healthy Economies?

Rising global interest rates are not necessarily a bad thing, as they can be a sign of a healthy economy. Subsequent or preceding rising inflation rates can actually lead to pay increases and better savings rates.

The US economy is relatively healthy and growing but some believe this cannot last. Jesse Colombo, writing for Forbes, says that the US Federal Reserve interest rate hikes will begin to impact global economies, particularly those with high levels of US dollar debt. In the US itself, corporate debt is at an all-time high and real estate prices have boomed on recent low mortgage rates.

Though the news is full of warnings over interest rate hikes, tariffs, and oil prices, the International Monetary Fund (IMF) on September 30, 2018, confirmed that global economic growth is still at its highest since 2011. Unemployment is falling in most countries and the number of people living in extreme poverty is at a record low.

The IMF does, however, recognize that there are signs of change or slowdown, but suggests that while the going is good, a little positive direction or steering could prevent any global economic decline.

Featured image from Shutterstock