The biggest opportunity we’ll encounter in our life-time has already begun and you don’t want to miss it!
We will be breaking down the main 15 Reasons Why The Biggest Wealth Transfer in History is Happening Right Now and what this means for the rich, for the poor and for you, the Aluxers looking to make the jump from one class to another.
Before we jump into the 15, you need to understand the 3 main types of wealth transfers that are about to take place:
1. Generational transfer – this is when a previous generation passes away or transfers their wealth to a younger segment of the population.
2. Geographical transfer – this is when money from one part of the planet transfer to another geography – a simple example here is how China has been taking money in by acting as the factory of the world. And the last one:
3. Technological transfer – this is when money shifts from one technology to another. A simple example here is the shift in wealth from people who had factories, to people who own marketplaces. Amazon, Google and so on, are more valuable than the factory making plates in China, or how Spotify is worth more than whatever print-newspaper your local city had.
Ideally, you would find yourself in a position to take advantage of all 3, we ourselves have been leveraging them to quickly build up our wealth and portfolio and so can you.
As always, here’s the video version of this article:
With that in place, let’s break down the wealth transfer!
Coronavirus Opened the Pandora’s Box
The entire world is in chaos. People are struggling on an individual level, small businesses are getting whipped out and despite all of it, the stock market is going up, which should make every one of you understand that the stock-market isn’t a reflection of the economy, it’s a reflection of how big money is being positioned.
The pandemic has been one of the greatest transfers of wealth we’ve seen in modern history …just not to the public who desperately needs it.
Instead the beneficiaries were big corporations and those who own assets.
The rich made so much money off of coronavirus while everyone else is struggling to keep the lights on.
The pandemic has been a brutal wake-up call on just how inefficient the entire system is. Many died, but this could’ve been 10-20-100 times worse and v. Nobody was.
In the last 6 months, everyone who was smart doubled if not multiplied their money several times.
Governments Just Keep Printing Money
Here’s something that many of you probably haven’t realised:
22% of all USD in the world was created in 2020.
Every time a financial crisis happens, governments just keep printing money. We’ve seen it happen in 2008 and now in 2020.
Coronavirus has pushed the governments so much, they the State LITERALLY gave away FREE MONEY. Do you realise just how crazy this is? Anyone who understands anything about money, knows there is no such thing as a free lunch!
Here’s another big lesson for you to learn:
Inflation is a hidden tax on your money that most people don’t know they’re paying!
Inflation is shooting up through the roof, while people are taking their stimulus checks and giving the money to big business.
Because of this volatility, This is one of the very few times in history when we’ve actually seen NEGATIVE INTEREST RATES.
You put 100,000 dollars in the bank and when you want to take it out, all you have is 98,000 and even that 98,000 that you have in hand is worth 90,000 in purchasing power.
When a government keeps printing money out of thin air, every dollar loses value. This is why smart people trust gold and bitcoin more than they do traditional currency.
You’re probably freaking out right now and have no idea how to use this information to your advantage. Here’s how to do it:
There’s never been a better time to borrow money than it is right now!
What you do with that information is up to you… towards the end of the article you’ll get some insights into where the world is headed and what we’re betting on.
Old People Are Dying
Pretty obvious one.. But there’s more to the story.
You can not talk about a transfer of wealth without looking at the generational gap.
A financial study in 2015 determined that $36 trillion will be transferred by baby boomers to their children in the US alone by mid-century. Cerulli Associates puts the number at $68 trillion now, with everything that’s happened.
What you need to understand is that Most of this money is self-made, first generation wealth. The old guard started companies, ran them to success and now they’re too old to keep it going. Because they’re first generation money, they never went through a transfer of wealth before.
Some of them got their children ready, but not everyone did. Just think of how different millennials are from baby boomers when it comes to managing money. This will reflect in the marketplace.
Many companies will be put up for sale or run into the ground, unless able to adapt to the fast changing ecosystem.
Money changes hands towards the people who are able to take care of it in the present!
We Just Entered the Digital-First Revolution
Talk about generational wealth transfer and you’re immediately hit in the face by the reality of the digital revolution.
Every dynamic company in the world just went DIGITAL FIRST!
You’re probably working from home right now and have no idea when or if you’ll ever decide to go back to working from an office.
Remember the intro to this article? When we said that there are 3 main types of transfer? Well.. the digital-first revolution involves geographic transfer as well.
Since your company now only cares about what you deliver and you completely work from home… the marketplace is about to be opened to the entire world. Why wouldn’t someone from South Africa, Pakistan or Uruguay be able take over your job with the proper training.
If you were scared that immigrants are coming to take away your jobs, now there’s not even the need to come over, they can take it away from you remotely! Local money will be democratised and bidded away to any individual who can deliver, no matter the country they’re from.
We’re all speaking english, we all know how to use a computer and now we’re all fighting for the same high paying jobs. This is the equality of opportunity the world was asking for.
In the race for profit – and in this case Survival – companies will use any leverage they can get!
Where the business environment goes, society follows. Which leads us to
Everybody Is -Finally- Coming Online
If you’re living in a developed society you might not have realised just how much of a competitive advantage you’ve been taking for granted, because information, resources and tools were being gatekept and reserved only for you.
Let’s take India as an example:
As of 2020, India has close to 700 million people online, more than twice the population of the US; and these people were not online 10 years ago. This number will most likely keep growing until 85 to 90% of the 1.35 billion people are connected to the internet.
This means over 1 billion ENGLISH speaking people will have access to the same kind of digital training and information you do right now… we’ve seen it in our internal analytics as well. Although the US, Canada, Australia & the UK, make up the bulk of our audience here on youtube, in the last 3 years our content has grown in popularity in emerging markets.
And India is just an example. Eastern Europe, has become a booming hub about everything IT and Telekom and many other geographies are following suit.
Where trends go, business follows!
Big players are moving around in the race to connect everyone in the world to the internet as quickly as possible and it’s all driven by progress and of course money. Billionaires are pouring their money and resources into telekom companies, because because the internet is no longer a luxury, it’s a utility!
Google is increasing connectivity everywhere around the world, Facebook is beaming down internet with self-flying electric drones and Elon Musk wants to cover the entire planet in a net of internet satellites.
The marketplace isn’t in the city center anymore, it has moved in the cloud!
Commerce and the ability to transact has been the most important factor in wealth creation in history and there are no longer gatekeepers to the cloud.
Anyone in the world can go to alux.com/sell and before the end of the day set up an online store in this new marketplace with Shopify and be able to accept payments. People from anywhere in the world can find and buy whatever you’re selling and if this isn’t extraordinary we don’t know what is. We have a great relationship with Shopify and if you go to alux.com/sell right now, you’ll get 2 weeks worth of high end services for free to simply play around in this new world of commerce.
The domino effect in marketplaces works in both directions: Growth as well as Destruction.
Let’s take growth first. When a company does well, a bunch of other companies pop up that benefit of the existing market and create growth. Around each one of these other smaller businesses come up and so on. It’s like a domino.
Google did well with their search engine, youtube came along, because of youtube’s success we were able to build out company and because of our success our contractors have been able to build other companies and hire their own people. It’s an entire chain.
If you want to get rich in the next 10 to 20 years jump on an upcoming technology and do not let go until you’ve made it.
In terms of the negative side of the Domino effect, the best example is what happened with the Pandemic and the work-online revolution that followed soon after.
People no longer need to come to the office and since they can deliver the same quality of work remotely, why pay the high rent in the city center, so they move out to adjacent areas where the rent is more affordable. Because of this the rent all over cities is plummeting.
Because people are no longer living in the city, the small businesses that relied on the heavy traffic from those business centers are going bust and so on the chain continues.
The wealth gets transferred from the old system to the new system.
Old Money Is Being Bought Out by New Money
Old money is scared and struggling in the current climate.
Since the pandemic, we’ve been able to acquire 2 incredibly rare and valuable properties from old money that otherwise would’ve never sold. In one case their main company was facing bankruptcy and were looking to liquidate anything in the hopes of saving the company and with the second one, and old businessman took the pandemic as a doomsday scenario and is selling most of their portfolio.
We’re part of the new money generation, the one that uses new tech to do business and we’re not alone in this. Young people are making bank right now and the biggest transfer of assets is happening right now.
Kids from TikTok are generating millions per year and they’re growing up with access to channels like ALUX and wealth advisors from an early age. Pop stars are no longer on the “live rich die poor” bandwagon and have wisen up. They’re building companies, acquiring assets and so on.
Taylors Swift owns over 300 million dollars worth of real-estate. Jay Z – new money – has bought heritage companies as well as investing in new tech. LVMH is picking up luxury brands one by one. Even Kanye has bought a bunch of land.
People who used to have factories in the past are being outearned by new money who are leveraging modern tools to keep growing their wealth.
If you’re into podcasts, tune into The Alux.com Podcast – it is meant for aspiring billionaires. Check out 15 Differences Between NEW MONEY & OLD MONEY.
Emerging Countries Have an Unfair Competitive Advantage
Emerging countries have an unique opportunity because they don’t have to start from scratch. Kids in poor countries are growing up with smartphones and the internet. The game is changing and the transfer of wealth is in their favor.
What were once poor countries, have gotten smart about their money.
They’re no longer being taken advantage by the big players in the same way they used to.
They’re developing infrastructure, investing in their own business ecosystems and wealth is flourishing because the environment hasn’t matured yet.
It’s a lot harder to break into money in the UK or Italy than it is in Ghana or Peru.
Developed countries like Italy for example are very matured markets, it’s really expensive to break into them and the returns aren’t high, taxation is brutal and there are hundreds of regulations you have to abide by.
On the other side of the globe you can get away with anything. There’s little to no oversight, cost of entry is cheap, corruption is still rampant and entire fortunes are happening because of it.
People in Bangladesh or Nicaragua can’t fathom the idea of having to pay 50 to 60% in income taxes, because they simply don’t trust the government to manage it effectively. That’s not a problem in Switzerland.
Here’s the truth:
If you want to have a good quality of life, live in a matured and developed country!
If you want to get rich, you do it in an emerging country!
Consumerism Is at an All Time High
We live in an age where people would buy ANYTHING! It slowed down a bit with the pandemic, but the trend is clear. We spend and spend and spend.
We’re all addicted to buying more stuff. One of the 2 leading industries in the world are ecommerce and marketing. Both have seen an explosion in performance in the past decade and it’s gonna go through the roof in the next one.
The smartest people in the world are making an effort to get you to buy more things. There are ads on the article you’re reading right now, designed to make you BUY MORE!
But there’s a catch to it:
Consumerism isn’t good for the consumer, it’s good for the seller!
Whenever you buy a product a transfer of wealth is happening! You’re transferring your wealth – your money in this case – to the person you’re buying from.
On a bigger scale, the consumers are literally making the sellers rich, by giving them their money.
Society is currently split into 2 categories: CONSUMERS & CREATORS!
With each transaction creators are getting richer and consumers are getting poorer.
You’re gonna take part in this transfer anyway, so figure out how to be a crater of value and get rich because of it.
Bitcoin & Blockchain
Back in the day in order to become a banker you had to be one of the richest people in the world and even then get backing from other rich people and even the state.
After the financial collapse in 2008, someone managed to create the safest bank that’s ever existed just by writing code on a screen.
Bitcoin and the blockchain technology it’s built on is the biggest technological breakthrough we’ve had since the invention of the internet and if you haven’t realised it yet, you’re already behind the curve. Bitcoin was built on top of blockchain the same way Facebook or Google have been built on top of the internet.
In the long run, Blockchain is 10 times more valuable to humanity than the internet!
Even China thinks so.
Although it’s over 10 years old, it’s still in its super early stages and we’re just now starting to grasp just how big of an impact this will have.
Blockchain is bigger than bitcoin but already people who understand how the space works have made fortunes. You might not be aware of this, but Bitcoin has returned 40% in the last 30 days.
Since the beginning of the year, despite the pandemic, Bitcoin is up 125%. 10% of our entire net worth is invested in crypto and we’re personally in this for the long run.
Remember how the people who are taking advantage of the internet are getting rich? Well, here it is all over again.
The big problem is that there is a lot of confusion and very few people understand how the space works and how to take advantage of this innovation. So we decided to do something about it. For the past few months we decided to create the best resource available. We call it Bitcoin Essentials and it will teach you everything we’ve learned about Bitcoin and Blockchain.
This is the reason why goal mastery is late. The time is now for the crypto revolution and you, the Aluxers will take a lot more immediate value from it. We will take you from scratch. It doesn’t matter if you’re tech savvy or a more traditional investor, we will explain in our own words and unique style how the technology works, how to use it, how to buy bitcoin safely and how to store it.
The course will become available at alux.com/bitcoin 2 weeks from now, the Sunday before cyber Monday. Make sure you are on the waiting list to be notified when it goes live and we will be sure to mention it in the Sunday motivational article.
If you want to be part of this new transfer of wealth and technological revolution coming through blockchain, you REALLY don’t want to miss this!
Technology Will Bring Market Corrections
Technology doesn’t care what industry you’re in or how much you like your job… it spares no-one.
Any inefficiency will be corrected. Every overbet will be penalised and giants will fall towards more agile and better equipped rivals.
We remember just a couple of years ago, when most of the auto manufacturers were laughing at Tesla, at their valuation and that they have no chance of making it… Elon proved them wrong. Tesla is now the most valuable car company in the world overtaking Toyota, Mercedes and Bmw.
The autoworld stared in shock. Investors in Tesla saw 5 to 10X returns.
Same thing happened with NIO – for those of you who have no idea.. NIO is the Chinese Tesla.
The world and more importantly – the money world – is saying out with the OLD in with the NEW.
Every industry that’s up for disruption will be in full swing in the next decade. Remember how NOKIA got completely crushed by APPLE? This is about to happen to every outdated industry.
Mass Automation Is Coming
Until the last few year, banks had to hire thousands of people for data entry and data analysis. Today, these thousands of people have been replaced by automated bots like the ones made by UIPath a company that was worth a couple millions 5 years ago, is now a 10 billion dollar company.
These are people who are writing code and programming machines to do the boring repetitive work you hated until the day you realised you’re about to lose it to software.
The wealth companies used to pay employees will be transferred to the bot creators.
Uber has over 5 million drivers around the world, that cut into the profits of the company. What do you think will happen once self-driving software gets good enough? 🙂
Another transfer will take place.
If something can be automated, it’s just a matter of time until it does!
You might think you’re safe for the time being, but we’re not so optimistic.
If you’re not in the software industry, it’s just a matter of time until some software enters your industry!
Society Is Being Restructured Under Our Eyes
The gap between the rich and the poor is only growing.
The rich are only getting richer while the poor… well…. Truth be told nobody really cares what happens to the poor as long as they don’t get in the way of what the rich are doing.
That’s literally what Universal Basic Income is: “We’re gonna give you guys free money so that we don’t have to worry about you rioting.”
We’re already seeing society being divided and restructured. There are literal lines drawn between the rich and the poor.
Travel right now is being restricted for the poor while the rich can fly freely under “business travel”.
Politics and policies are driven by social media. We mentioned Uber earlier, a company that during the election swayed the public opinion in order not to qualify their drivers as employees so they don’t have to pay benefits or be liable for their actions. Uber and Lyft spent over $200 million on the ballot measure to keep their drivers classified as independent contractors and have used their platforms to urge their drivers on how to vote. If Uber can sway public opinion, wait until Google and Facebook take a crack at it.
We’re currently living in a Corporatocracy!
The New World Order Is Ruled By Global Corporations And Megacities—Not Countries and your place in the new wealth hierarchy will be determined by how you position yourself in this context.
We’re not saying this is good or bad… we’re saying you should be ready.
New Industries & More New Tech Is Coming
Tobacco is on its way out, cannabis is already in – the recent election showed it.
Entire new industries are growing rapidly. Beyond meat proved there’s a demand for plant based meat replacements and now the big players are following in. Even McDonald’s has announced it will introduce a line of plant-based meat alternatives called “McPlant” in 2021.
Earlier this year Elon showcased a pig with a chip in its brain and confidently said we’ll be ready to telepathic texting in the next 5 years… because you know.. Typing with your fingers is boring.
We’re on the verge of a complete transition from fossil fuels to renewables in the next few decades which will bring yet another transfer of wealth from one camp to another.
Everywhere you look you can see the change happening. You might miss it if you’re expecting it to happen all of a sudden, but 10 years ago we didn’t have any food delivery businesses and now you can order anything you want from a phone. This radically changed the restaurant business. Those who are quick to adapt thrive in this new world while everyone else goes bye bye.
The number of people zooming by on Electric Scooters in major cities is an indication that the world is changing and it’s changing fast.
Food, transportation, banking, even education has moved almost completely online – or at least it’s trying to sort itself out. These are all super early versions of the future in which we’re all gonna live.
Try to explain any of this to your grandparents and you’ll realise just how big of a leap we’ve made in just 2 generations.
We are literally experiencing one of the biggest transitions in the history of humankind and we couldn’t be more excited to see where this takes us.
As a matter of fact.. We have a decent idea about that:
The Space-Race Has Already Begun
If you think everything we talked about in this article before now is dividing society, wait until you realize that not far into the future, the world will be split into Single planetary beings and Multi planetary beings.
This might not sound like much but think about it like this: what if you grew up in an isolated village and all your life you only lived, seen, did business with the people from your village. You don’t even have to imagine, we have video footage of the people of North Sentinel Island who did just that.. You know them because they like shooting wood arrows at helicopters.
Now compare it to someone who’s been able to trade, learn, exchange tools and experiment with everything and everyone else in the world. It’s literally modern vs stone age people. That’s why transfer of wealth is important.
Billionaires are investing their fortunes into space, because that’s where the new untapped resources are.
Apart from asteroids made of gold and rare metals worth 70,000 times more than the entire economic worth of planet Earth, there are other metals, substances that have the potential to radically change human kind.
When the new settlers came to America.. It became the land of free – poor choice of words if you ask us, considering who they brought on the ships with them – but it made them incredibly rich.
The same thing will happen with space – hopefully we’re passed the slavery part – and the race has already begun. The rich are simply making last minute small changes to make sure their boats do not sink in the transition.
This is a big wake-up call to everyone who right now feels like they’re stuck in the middle, because they really are. This is happening and it doesn’t matter if we like it or not.
Which brings us to today’s question: How do you plan on making the most out of the change that’s about to happen?
Let us know in the comments as we can’t wait to hear your take on any of the things we discussed.
This wraps up our take on the 15 reasons why the biggest wealth transfer in history is happening right now! We hope you found it valuable!