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US wealth in perspective...
Old 10-27-2011, 01:40 PM   #1
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US wealth in perspective...

If you're feeling poor on a comparative basis: change who you're comparing yourself to and feel better.

According to research by Credit Suisse for a person to be in the top 10% of the global wealthy you only need $82,000 in assets, net of debt. To be in the top 1% it only takes $712,000 in net assets.

I hope that makes a lot of you feel better off .



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Old 10-27-2011, 01:50 PM   #2
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Quote:
Originally Posted by LARS View Post
If you're feeling poor on a comparative basis: change who you're comparing yourself to and feel better.

According to research by Credit Suisse for a person to be in the top 10% of the global wealthy you only need $82,000 in assets, net of debt. To be in the top 1% it only takes $712,000 in net assets.

I hope that makes a lot of you feel better off .



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I know you were probably semi-joking but on a more serious note, clearly $712k goes much further in a poor 3rd world country than in US; and even within US it matters where you live and what your expenses are... so to compare apples to apples, a better metric for comparison would be something like

Financial Success = Net Worth / Average Projected Future Yearly Expenses (in constant dollars, inflation-wise)...

E.g. if you plan to spend $50k/year in today's dollars in your future years, you'd put 50k in denominator...
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Old 10-27-2011, 05:09 PM   #3
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Originally Posted by smjsl View Post
I know you were probably semi-joking but on a more serious note, clearly $712k goes much further in a poor 3rd world country than in US; and even within US it matters where you live and what your expenses are... so to compare apples to apples, a better metric for comparison would be something like

Financial Success = Net Worth / Average Projected Future Yearly Expenses (in constant dollars, inflation-wise)...

E.g. if you plan to spend $50k/year in today's dollars in your future years, you'd put 50k in denominator...
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Old 10-27-2011, 05:23 PM   #4
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I sure don't feel like I'm in the 1% bracket !
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Old 10-27-2011, 06:57 PM   #5
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1 % of 7,000,000,000 (world population ) is 70,000,000.
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Old 10-28-2011, 11:33 AM   #6
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Originally Posted by smjsl View Post
I know you were probably semi-joking but on a more serious note, clearly $712k goes much further in a poor 3rd world country than in US; and even within US it matters where you live and what your expenses are... so to compare apples to apples, a better metric for comparison would be something like

Financial Success = Net Worth / Average Projected Future Yearly Expenses (in constant dollars, inflation-wise)...

E.g. if you plan to spend $50k/year in today's dollars in your future years, you'd put 50k in denominator...
Very true. For example, in California $700,000 barely buys you a paid off house in the Santa Barbara area. Also, property tax of $5-6000 is common is California, and there are many places in the world that you can live on $10,000/yr quite comfortably. So, really, this comparison is not very helpful, unless it is done on a PPP yardstick. (that too is imperfect, but a bit better)
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Old 10-28-2011, 11:38 AM   #7
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I think it's odd that so many of these estimates of comparative wealth are based either on income or on net worth, but not both. It's obvious that both matter.
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Old 10-28-2011, 12:33 PM   #8
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I am the 1% (worldwide).
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Old 10-29-2011, 05:57 AM   #9
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I never thought of myself as a 1%er. But I still think it would be a bad idea to put that on my motorcycle jacket.
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Old 10-29-2011, 10:51 AM   #10
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With all the poor in the world, I'm surprised the 1% total is that high. I am not in the 1% yet, so maybe I'm just bitter!

I can't find the link but I read that the UN predicts the global middle class will outnumber the poor soon. I think the yardstick for middle class would seem meager by our standards, but nonetheless it's quite a moment in human history.
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Old 10-30-2011, 05:43 AM   #11
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Thanks for sharing, LARS. I have the privilege to go to third world countries on a regular basis for medical missions. I see extreme poverty there. It does not make me feel better about myself, just bitter we live in such an unfair world. This world will never be at peace as long as we have such disparities in global wealth distributions IMO.
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If you're feeling poor on a comparative basis: change who you're comparing yourself to and feel better.
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Old 10-30-2011, 11:29 AM   #12
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... we live in such an unfair world. This world will never be at peace as long as we have such disparities in global wealth distributions IMO.
Or is it the other way 'round? The lack of peace creates disparities in global wealth distributions? Seems that most of the countries with really poor people have dictatorial war-lords (or simply corrupt) as leaders, holding the general population back.


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Old 10-30-2011, 11:00 PM   #13
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Comparing yourself outside of your peers isn't worth much. I believe that the "Occupy" and Tea Party people compare themselves to their parents and those around them and see their opportunities and standard of living falling. Many people in the US feel poor compared to their peers which is why we have these populist movements.
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