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Pew Research Report on wealth
Old 04-23-2013, 01:20 PM   #1
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Pew Research Report on wealth

Though this might be of interest here:

A Rise in Wealth for the Wealthy; Declines for the Lower 93% | Pew Social & Demographic Trends

Quote:
From 2009 to 2011, the mean wealth of the 8 million households in the more affluent group rose to an estimated $3,173,895 from an estimated $2,476,244, while the mean wealth of the 111 million households in the less affluent group fell to an estimated $133,817 from an estimated $139,896.



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Old 04-23-2013, 01:29 PM   #2
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PEW!
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Old 04-23-2013, 01:54 PM   #3
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Dumb question, but at what point in the year do they take those figures? My guess would be year end? As in, the 2009 figures would be as of 12/31/09 and 2011 figures would be as of 12/31/11?

Reason I'm asking, is because 2009 was a year of HUGE recovery, for me at least. From 12/31/08 to 12/31/09, I saw my NW go up about 77%. So, at what point in the year they take that reading can have a huge impact. For comparison, my NW went up about 29% in 2010, and about 4.1% in 2011.

Now, just to clarify, that's net worth and NOT rate of return. One reason NW kept going up as much as it did was because I kept on throwing in new money. Rate of return for those three years wasn't quite as rosy: 44.7% in 2009, 19.8% in 2010, and I actually lost 0.12% in 2011.
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Old 04-23-2013, 02:30 PM   #4
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Quote:
Originally Posted by jollystomper View Post
Thanks for the info. It's hard to nail down this information to see how I measure up. I suspect a lot of the worlds wealth is unreported.
The 16th Annual World Wealth Report 2012 is another source on the subject.
http://www.capgemini.com/resources/w...h-report-2012/
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Old 04-23-2013, 02:30 PM   #5
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Anyone with a large part of their net worth in stocks would have had a big jump. would have been better to highlight 2007-2011, but maybe not as juicy.
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Old 04-23-2013, 02:57 PM   #6
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"Wealth" = "net worth" in this report. I wish they had reported on the 93% broken down into groups... But anyhow not surprised by this. The middle class is getting beaten down.
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Old 04-23-2013, 03:26 PM   #7
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"Wealth" = "net worth" in this report. I wish they had reported on the 93% broken down into groups... But anyhow not surprised by this. The middle class is getting beaten down.
The detailed report is there, don't just read the overview.
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Old 04-23-2013, 03:48 PM   #8
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From the linked report:
Quote:
The different performance of financial asset and housing markets from 2009 to 2011 explains virtually all of the variances in the trajectories of wealth holdings among affluent and less affluent households during this period.
So, the big news is that stocks appreciated a lot more than home prices from 2009 to 2011.

This is germane to another thread now discussing whether home ownership should be a part of the American Dream. If fewer of the middle class had money in their homes and instead owned stocks, they would have joined the rich in doing better over this time period . . . assuming they actually have money in their homes. If they got a 0% down mortgage and simply got schwacked by the decrease in their highly leveraged positions, that's best seen as the the downside of any risky position.
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Old 04-23-2013, 04:02 PM   #9
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The article indicates that it didn't consider pensions, DB plans, SS. In net worth calculations. Those didn't fall in 2008 and thus didn't increase dramatically afterwards. So, not all of the middle class is being left behind.
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Old 04-23-2013, 04:27 PM   #10
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For the top 7% not sure mean is that meaningful. Medium would be much better. The top 1% and really top 0.1% in terms of net worth would be massive and distort the mean value.
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Old 04-23-2013, 05:00 PM   #11
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Originally Posted by Gatordoc50 View Post
The article indicates that it didn't consider pensions, DB plans, SS. In net worth calculations. Those didn't fall in 2008 and thus didn't increase dramatically afterwards. So, not all of the middle class is being left behind.

Yup that is always a problem with these studies, pensions and transfer payments are never considered assets.
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Old 04-23-2013, 09:46 PM   #12
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Originally Posted by samclem View Post
....If fewer of the middle class had money in their homes and instead owned stocks, they would have joined the rich in doing better over this time period . . . assuming they actually have money in their homes. If they got a 0% down mortgage and simply got schwacked by the decrease in their highly leveraged positions, that's best seen as the the downside of any risky position.
that and I think there are many families who bailed out of stocks and were on the sidelines during the rally and saw their net worth decline (two families that I know of) whereas those who had the courage to stay the course prospered.
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Net worth / wealth recovery
Old 04-23-2013, 10:23 PM   #13
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Net worth / wealth recovery

I found this article to be very interesting, although pretty self explanatory as to where wealth is "stored" based on total net worth .... sharing it here.

http://www.pewsocialtrends.org/files...very_final.pdf
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Old 04-23-2013, 10:24 PM   #14
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Old 04-23-2013, 10:44 PM   #15
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Another thread on the report has just been started (net worth/wealth recovery). May I respectfully suggest that the newer thread be merged into this one?
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Old 04-24-2013, 04:57 AM   #16
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Threads merged
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Old 04-24-2013, 10:24 AM   #17
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Threads merged
NW of the top 1% ofUSA households
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Old 04-25-2013, 10:48 PM   #18
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Quote:
Originally Posted by TOOLMAN View Post
Thanks for the info. It's hard to nail down this information to see how I measure up. I suspect a lot of the worlds wealth is unreported.
The 16th Annual World Wealth Report 2012 is another source on the subject.
The 16th Annual World Wealth Report 2012 | Capgemini Worldwide
According to the Capgemini world report, $1 million investable assets puts you in the upper portion of the top 1% worldwide. Adds a little perspective.
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Old 04-25-2013, 11:20 PM   #19
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Originally Posted by kmt1972 View Post
For the top 7% not sure mean is that meaningful. Medium would be much better. The top 1% and really top 0.1% in terms of net worth would be massive and distort the mean value.
+1

And the "top seven percent" is an odd choice - maybe the choice that best sells the position that the rich are getting richer and the poor are getting poorer?

And the fine print under the graph indicates that the actual 93rd percentile net worth dropped by $53,000 in 2011 vs 2009!
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Old 04-26-2013, 05:00 AM   #20
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Median is really no better indicator of the whole than any of the others.
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