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The internet says that by income it is a household earning 430k.
Or a net worth of 10M.
What is it for spending?
Or a net worth of 10M.
What is it for spending?
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That is a funny question. If I am in the 1% by income and I spend a lot, I will never make it to the 10M net worth of the 1%.
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The internet says that by income it is a household earning 430k.
Or a net worth of 10M.
What is it for spending?
Have a link?
Most of my reading in the past made it sound much less than that.
Or was it 0.1%.Comment
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This is the internet I do not need to supply proof of my claims ?
Nah here it is.
https://dqydj.com/top-one-percent-united-states/Comment
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Things must have shot up recently.
There was a blog that was widely cited for showing Americans by wealth when the % by income was all the rage. There, in 2012 or so you could get into the top 1% with just 3-4M. Things have gotten out of hand since then.Comment
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Things must have shot up recently.
There was a blog that was widely cited for showing Americans by wealth when the % by income was all the rage. There, in 2012 or so you could get into the top 1% with just 3-4M. Things have gotten out of hand since then.
Well VTSAX has more than doubled since then. Though survey apparently only through end of 2017. Agree the 10M net worth is a bit surprising.
Some more net worth data here linked in above
https://dqydj.com/net-worth-brackets-wealth-brackets-one-percent/
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What is it for spending?
I spent a bit googling and looking at BLS.gov but couldn't find much there, aside from income quintile grouping.
https://www.bls.gov/news.release/pdf/cesan.pdf
Obviously harder for the gov to collect data on spending than on income.Comment
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With those numbers I’ll never be in the 1% by net worth even though I might spend 20+ years as a 1%er by income. Even using a generous 6% nominal return, and contributing over 20% of gross income to retirement accounts for 20 years barely gets me to half of that $10M, and I expect that it will continue to rise in the future as well.
Oh well. I’ll still have more than enough for my wants and needs which is all that matters anyway.Comment
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I can't cite it but I remember reading an article last year about how a lot of people spend a few years in the 1% but not many do it consistently over 20 years, which would account for the difference in income vs networth.Comment
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Did the link provided by childay imply there are 1.26m households with a net worth more than 10m in US?Comment
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I looked at the top 1% by state, most were under $400K except for Washington DC. Not sure how they got the average at $435KComment
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"With those numbers I’ll never be in the 1% by net worth even though I might spend 20+ years as a 1%er by income."
It's always amusing when doctors who think they're 'rich' while earning a few hundred k a year become aware that there are peole out there who earn far more or, more interestingly, have accumulated far more. Hedge fund managers earning nine figures, beneficiaries of massive trust funds, selling a business... its a big world out there and some people are wildly successful.Comment
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The compounding rate also makes a big difference.
At 12% you should be able to get to 10M by age 50 on 500k/year starting from age 30.
In the real world I only know 5 people with NW over 10M. In the virtual world, probably only 5 people also.
Very few people with NW in the 20M range. Even fewer in the 50M range.
My neighbour has a business that employs 200 people and they are not in the 20M range. You’d be surprised.
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I can’t cite it but I remember reading an article last year about how a lot of people spend a few years in the 1% but not many do it consistently over 20 years, which would account for the difference in income vs networth.
That was my thought. That a lot of the big spenders can only keep it up for so long.
Well VTSAX has more than doubled since then. Though survey apparently only through end of 2017. Agree the 10M net worth is a bit surprising.
I think the 10M is the mean. So a few billionaires can really drag the number up.
It’s always amusing when doctors who think they’re ‘rich’ while earning a few hundred k a year become aware that there are peole out there who earn far more or, more interestingly, have accumulated far more. Hedge fund managers earning nine figures, beneficiaries of massive trust funds, selling a business… its a big world out there and some people are wildly successful.
I agree doctors can get wealthy if they save and work a long time but the very high net worth crowd are people who have people who have people that make money for them and that money makes more money for them.
Or they are a pro athlete or actor.
In the real world I only know 5 people with NW over 10M. In the virtual world, probably only 5 people also. Very few people with NW in the 20M range. Even fewer in the 50M range. My neighbour has a business that employs 200 people and they are not in the 20M range. You’d be surprised.
The very few high net worth people I know live well but not as high as their worth would suggest. Most of it is tied up in their business.Comment
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I think the 10M is the mean. So a few billionaires can really drag the number up.
I wonder what the median isComment
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