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

[Anonymous]

Anonymous wrote:

Anonymous wrote:The differences between average and median net work are crazy.

So many people with so little saved or even so little equity.

But the top 10% are doing so well!

It’s like a Bernie Sanders encounter group in here!

[Anonymous]

Anonymous wrote:Half of Americans over 55 may retire poor
https://www.marketwatch.com/story/half-of-americans-over-55-may-retire-poor-2020-10-01?mod=home-page

It's more than unfortunate that many will end up unable to afford retirement.

[Anonymous]

3% income, 10% net worth. I’ve got some catching up to do.

[Anonymous]

Wonder if it will remain on an upward trajectory by the end of this year.

[Anonymous]

I think people are not thinking through this. You will always have a higher percentile for income then net worth unless you have an inheritance or are older.

Let’s say you are 40 and just started making a 98th percentile income, there is no way to have a 98% net worth without an inheritance or lottery type win when you were younger. Moving up in net worth takes years of sustained high income and market returns.

If the 40 year old keeps making a 98% income for the next 20+ years then they have a chance of also having a 98% net worth or possibly even more.

[Anonymous]

This is so demoralizing. I was just inside the top 2% a decade ago. My earnings have gone up so much (at least it seems like it), so I was thinking, man, I must be in the 1% by now. But nope, I'm actually farther away from the 1% now than I was 10 years ago! no way to keep up with the joneses

[Anonymous]

Anonymous wrote:This is so demoralizing. I was just inside the top 2% a decade ago. My earnings have gone up so much (at least it seems like it), so I was thinking, man, I must be in the 1% by now. But nope, I'm actually farther away from the 1% now than I was 10 years ago! no way to keep up with the joneses

That 1% number fluctuates significantly by year, much more then the lower percentiles. Explore that website it has lots of info.

[Anonymous]

Anonymous wrote:I think people are not thinking through this. You will always have a higher percentile for income then net worth unless you have an inheritance or are older.

Let’s say you are 40 and just started making a 98th percentile income, there is no way to have a 98% net worth without an inheritance or lottery type win when you were younger. Moving up in net worth takes years of sustained high income and market returns.

If the 40 year old keeps making a 98% income for the next 20+ years then they have a chance of also having a 98% net worth or possibly even more.

Software engineers and entrepreneurs at startups that develop successful products will have higher net worth than income for most of their lives.

[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.

[Anonymous]

this forum makes me feel so freaking poor

[Anonymous]

Anonymous wrote:this forum makes me feel so freaking poor

Richness in life is derived from family, friends and health. Sure, it’s helpful to have money but it only helps to an extent.

[Anonymous]

Anonymous wrote:

Anonymous wrote:this forum makes me feel so freaking poor

Richness in life is derived from family, friends and health. Sure, it’s helpful to have money but it only helps to an extent.

+1

[Anonymous]

I'm at 72% for income and just over 85% for net worth, thanks to making the max retirement contributions in my 20s, some obsessive saving, and working a second job.

And I thought I could retire early because of all the money I've tucked away. I feel badly for the people in this forum who have top 10% incomes, but think they are middle class. I know I'm doing much better than the average person, but you all probably think I eat generic ramen and live in a shed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:this forum makes me feel so freaking poor

Richness in life is derived from family, friends and health. Sure, it’s helpful to have money but it only helps to an extent.

Poor people always say this.

[Anonymous]

In 2020, my DH and I hit the 1 percent for HHI (in our early 50's). But we are far far far from the 1 percent in net worth.