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As most here realize, docs typically fall in top 10%. Many into top 5%. Only a few into the top 1%.
This is NOT the perception people have of docs though -- most think we all live in the Top 1%. --smh.Comment
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As most here realize, docs typically fall in top 10%. Many into top 5%. Only a few into the top 1%.
This is NOT the perception people have of docs though — most think we all live in the Top 1%. –smh.
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perception-doctors-- top 1% for both income and net worth
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I thought the article/data is very useful. Though not a physician, coming out of medical school with 100k - 200k+ plus of debt potentially puts you in the negative 90%+ net worth bracket. A lot more context could be added by a similar study/data set with age strata. There is a huge difference between a 100k net worth at 24 yo versus 55 yo.Comment
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Often docs are top 1% by income...thus the 300K income bracket....
As for net worth, I doubt many of us have a 10 million dollar net worth, but I would take that any day over a 300k income. I suspect most of us end up in the top 5% and that may take 10 years of practicing and some good saving.
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I don't know, $10M strikes me as awful high for the top 1%, and $1.2M for top 10%. Are they saying that one in ten households is a millionaire? Seems like a lot.
Also says it excludes wealth such as pensions and social security which would seemingly make it more of a stretch. Relatively small sample size too.
Then again, $1.2M isn't really a lot. That could be owning a home and putting a reasonable amount of money into retirement. There's definitely a lot more people out there with money than most people realize.Comment
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I track my Networth monthly but I think income is a better choice. That income should include Rents and Dividends. An extreme example, $10M in T-bills is very different from $10M in real estate providing you with inflation protected monthly income. Of course you might have $10M in T-bills because you are about to buy a hotel.Comment
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Net worth is difficult to calculate
If you look at this blog the requirement to get into the top 1% net worth was 1.2M and even the 2014 update did not change that much. I doubt that it has become $10M today.
http://www2.ucsc.edu/whorulesamerica/power/investment_manager.htmlComment
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Net worth is difficult to calculate
If you look at this blog the requirement to get into the top 1% net worth was 1.2M and even the 2014 update did not change that much. I doubt that it has become $10M today.
http://www2.ucsc.edu/whorulesamerica/power/investment_manager.html
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Yes I have seen that post before but not the update. An awfully lot of us are 1%ers if it only takes 1.2 mill to get there. I intuitively I feel 8-10 is more realistic. I don't know if it even matters.Comment
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Net worth is difficult to calculate
If you look at this blog the requirement to get into the top 1% net worth was 1.2M and even the 2014 update did not change that much. I doubt that it has become $10M today.
http://www2.ucsc.edu/whorulesamerica/power/investment_manager.html
Click to expand...
I skimmed it but this bit compares the two methods briefly:
A New York Times article (Economix, 1/17/12) agrees that the threshold for being in the top 1 per cent in household income is about $380k but states that, based on Fed data, the 1% threshold for net worth is $8.4M. The figure I use is around $1.5M and comes from the IRS. The Fed uses a simple formula based on assets and liabilities at a broad level of analysis with little detail. Using Fed data, about 8% of US households have a net worth exceeding $1M and the median net worth of the top 10% of US families is $1.569M. The IRS uses the estate multiplier technique to calculate the data, a more complex measure based on tax returns, capitalization of earnings power, and other factors. The estate multiplier technique has been around for decades, is more widely used, and in the opinion of many, is the more accurate number. Where the true threshold is located is impossible to determine with accuracy, but my observations in managing money support the lower number or something close to it.
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