The 1% in the household income and net worth distributions in the US in 2020

[Anonymous]

Anonymous wrote:

Anonymous wrote:we only have 93% income, but are at 98% net worth for our age group.

That would indicate that you are smart with your money and know how to save and invest. HHI does not mean high net worth.

It is entirely possible that they managed their finances well. It could also indicate that they had a windfall like an inheritance, lottery prize, etc. You don't have to be smart to reap a windfall.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ridiculous. We are just in the top 1 percent, by a whisker, but we are very far from rich.

After paying mortgages on our two homes, bills, private school, meals out, soirees, European vacations etc. there is very little left at the end of the month.

Sounds like you are 1% in terms of income but not net worth. 1% of net worth is a better indicator of wealth than income. When in 1% of net worth, you don't worry about financial security so much.

**Whoosh**

[Anonymous]

Anonymous wrote:Ridiculous. We are just in the top 1 percent, by a whisker, but we are very far from rich.

After paying mortgages on our two homes, bills, private school, meals out, soirees, European vacations etc. there is very little left at the end of the month.

You wouldn't be the first person to be caught up in overspending and lifestyle creep.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:we only have 93% income, but are at 98% net worth for our age group.

That would indicate that you are smart with your money and know how to save and invest. HHI does not mean high net worth.

It is entirely possible that they managed their finances well. It could also indicate that they had a windfall like an inheritance, lottery prize, etc. You don't have to be smart to reap a windfall.

pp. The reason we have that is because we got married young and saved a lot of our income early on and one of us was always able to WAH so we had minimal childcare costs, and we don't live in a very expensive area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ridiculous. We are just in the top 1 percent, by a whisker, but we are very far from rich.

After paying mortgages on our two homes, bills, private school, meals out, soirees, European vacations etc. there is very little left at the end of the month.

You wouldn't be the first person to be caught up in overspending and lifestyle creep.

Omg PP was poking at the loads of posters that make a very similar argument

[Anonymous]

It says average networth for 45 year old $750K.
So averge networth for 45 year old married couple is $1.5M. That seems high.

[Anonymous]

Anonymous wrote:Ridiculous. We are just in the top 1 percent, by a whisker, but we are very far from rich.

After paying mortgages on our two homes, bills, private school, meals out, soirees, European vacations etc. there is very little left at the end of the month.

Try spending a little less.

[Anonymous]

According to EPI in 2017:

"Marin County CA is, of course, where the Bay Area’s fiscal crème de la crème are most likely to congregate, coming in number eight nationwide in the rankings of wealthiest counties. Up there, a one percent income is at least $1.13 million/year. San Mateo County comes in a close number nine at $1.12 million. And in Santa Clara County, it’s $979,000."

There is locality variance.

[Anonymous]

Anonymous wrote:It says average networth for 45 year old $750K.
So averge networth for 45 year old married couple is $1.5M. That seems high.

Very high!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:we only have 93% income, but are at 98% net worth for our age group.

That would indicate that you are smart with your money and know how to save and invest. HHI does not mean high net worth.

It is entirely possible that they managed their finances well. It could also indicate that they had a windfall like an inheritance, lottery prize, etc. You don't have to be smart to reap a windfall.

pp. The reason we have that is because we got married young and saved a lot of our income early on and one of us was always able to WAH so we had minimal childcare costs, and we don't live in a very expensive area.

NP - after we got married we saved one income and invested it. We lived comfortably on one income so it wasn’t a struggle. Over time our income was in the 1% but our net worth is closer to .01%. Thirty five years of investing and compounding really paid off.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It says average networth for 45 year old $750K.
So averge networth for 45 year old married couple is $1.5M. That seems high.

Very high!

Avg is always skewed by very rich and poor people at that age group. It doesn't mean that a large number of people have that avg net worth.

[Anonymous]

Anonymous wrote:It says average networth for 45 year old $750K.
So averge networth for 45 year old married couple is $1.5M. That seems high.

That's not what it says at all. The net worth info is for "primary economic unit" (which corresponds more closely but not perfectly to households), not individuals, and it's not broken out by age.

[Anonymous]

Anonymous wrote:Ridiculous. We are just in the top 1 percent, by a whisker, but we are very far from rich.

After paying mortgages on our two homes, bills, private school, meals out, soirees, European vacations etc. there is very little left at the end of the month.

You would save a ton if you were to staycation. Floribama?

[Anonymous]

Anonymous wrote:

Anonymous wrote:It says average networth for 45 year old $750K.
So averge networth for 45 year old married couple is $1.5M. That seems high.

That's not what it says at all. The net worth info is for "primary economic unit" (which corresponds more closely but not perfectly to households), not individuals, and it's not broken out by age.

This, and I do believe it includes home equity, which is going to skew it upwards because the housing market is at the peak of its cycle. A lot of that "wealth" will disappear when the market corrects.

[Anonymous]

average, not median. skewed by billionaires.

if you have Jeff Bezos in a stadium with 10,000 homeless people, the average net worth of everyone in the stadium is $10 million dollars.