Are you the 1%?

[Cap_Scarlet]

I was reading this article today:

You may be higher up the global wealth pyramid than you think | The Economist

Which essentially says if you have $744,000 you are part of the wealthiest 1%. From my previous "what are you spending" thread I believe (and maybe this is a misleading impression) that the majority of people frequenting this forum are spending at a level which puts them not in the 1% but probably in the 0,01%.

What do you think?

 

[Senator]

1% of the world is a far cry from 1% of the USA (or any developed country...)

 

[Danmar]

1% of the world is a far cry from 1% of the USA (or any developed country...)

Agree. Why would a comparison to third world, poor countries be useful? Other than to point out how much wealth disparity there is?

 

[aaronc879]

I was reading this article today:

You may be higher up the global wealth pyramid than you think | The Economist

Which essentially says if you have $744,000 you are part of the wealthiest 1%. From my previous "what are you spending" thread I believe (and maybe this is a misleading impression) that the majority of people frequenting this forum are spending at a level which puts them not in the 1% but probably in the 0,01%.

What do you think?

I think the members of this site have a far greater net worth than the average population. If you have $744,000+ then you are very well off financially no matter where you live. People who have more than that may not realize how well off they are but they are very well off. Not counting pensions, I don't know anyone who falls into the top 1%. Of the people I personally know, I don't think any of them are even half way there. I'm not close to half way to $744K and i'm better off than the majority of people I know. I am in the top 10% though despite no inheritance, or large gifts and never making more than $49K gross in any one year in my life. No gains from real estate either. My savings is strictly from "LBYM".

 

[Earl E Retyre]

I was reading this article today:

You may be higher up the global wealth pyramid than you think | The Economist

Which essentially says if you have $744,000 you are part of the wealthiest 1%. From my previous "what are you spending" thread I believe (and maybe this is a misleading impression) that the majority of people frequenting this forum are spending at a level which puts them not in the 1% but probably in the 0,01%.

What do you think?

Looks like a poll was recently done on this forum: http://www.early-retirement.org/forums/f28/whats-your-net-worth-81854-2.html
which shows that the majority of people on this forum (who responded to the poll) have NW of $1M-$5M.

 

[HillCountry]

Agree. Why would a comparison to third world, poor countries be useful? Other than to point out how much wealth disparity there is?

If the person is in third world or plan to retire there, this might make sense. Otherwise, not useful comparison.

 

[MooreBonds]

I was reading this article today:

You may be higher up the global wealth pyramid than you think | The Economist

Which essentially says if you have $744,000 you are part of the wealthiest 1%. From my previous "what are you spending" thread I believe (and maybe this is a misleading impression) that the majority of people frequenting this forum are spending at a level which puts them not in the 1% but probably in the 0,01%.

What do you think?

Using a quick google search, it appears the average SS recipient receives an average check amount of $1,300/month. Using immediateannuities.com, to purchase that same payment stream starting at age 67 today would cost about $225,000. Assuming a spouse never worked and received 1/2 of that, that means a 67 year old couple retiring today would have an income stream that costs about $340,000...not too terribly far away from the arbitrary 1% level of worldwide status.

And of course that completely disregards equating standard of living to wealth. Even those on welfare in the US enjoy quite a few benefits that the 'wealthy' in many other nations don't enjoy - like public restrooms, clean water/sanitation, emergency medical care that is unattainable for anyone of any social status, law enforcement, public education, cheap energy...the list goes on and on.

 

[Amethyst]

In fact, what is useful about wealth comparisons, period? Not saying they aren't interesting, but I don't see a practical use.

Agree. Why would a comparison to third world, poor countries be useful? Other than to point out how much wealth disparity there is?

 

[samclem]

Agree. Why would a comparison to third world, poor countries be useful? Other than to point out how much wealth disparity there is?

Maybe not "useful", but (IMO) very relevant on this Thanksgiving holiday as I ponder the many things I have to be grateful for. Not just material things, but so much more.

 

[Jerry1]

U.S figures as of 2013. I'm not a 1 percenter (that would take about $7.8 million) but I'm a 5 percenter. Not too bad. So at $744K you're a world 1 percenter and even in the U.S, somewhere near the top 15 percent.


Wealth Percentile Net Worth
99.90% $30,644,280.00
99.50% $11,898,128.00
99.00% $7,869,549.00
95.00% $1,868,640.00
90.00% $943,656.00
80.00% $428,540.00

 

[Mdlerth]

In fact, what is useful about wealth comparisons, period? Not saying they aren't interesting, but I don't see a practical use.

+1 In other venues, there might be an eager, compulsive obsession with comparing others' wealth to one's own, because for them it's about keeping score. Not here. It's well established that the folks on this board share a common goal, of which the most fabulous feature is that it's not a zero sum outcome. Nobody has to be in competition to get the ER prize first before someone else takes it. There will be plenty of ER to go around, regardless of how many people claim it.

If you amass a bigger pile than I do and FIRE first, it's ok. It won't affect my attaining ER on my own timetable. In fact, most people are happy to share their roadmaps so others can learn and enhance their own strategies.

It's almost counter intuitive: the ones who stack the biggest fortunes usually face the question, "Why did you keep working so long when you didn't need to?"

 

[Sunset]

The way to win here is to quit getting ahead !

Love it........

 

[chris2008]

Agree. Why would a comparison to third world, poor countries be useful? Other than to point out how much wealth disparity there is?

It makes me realise that my wealth is based on a lucky birth as much as or more than on my merits. Increases modesty.
One more thing to be thankful for, not only today.

 

[Music Lover]

Agree. Why would a comparison to third world, poor countries be useful? Other than to point out how much wealth disparity there is?

Does it point out disparity, or does it point out that one system works better?

 

[donheff]

Does it point out disparity, or does it point out that one system works better?

If you just go by per capita the US is somewhere between 9th and 13th. There are some widely varying systems in the top mix. But the differences definitely point out disparities regardless of the underlying reasons.

 

[Danmar]

If the person is in third world or plan to retire there, this might make sense. Otherwise, not useful comparison.

Valid point but in that case it would be the cost of living there that would be most important, rather than how poor they are asset-wise.

 

[Danmar]

Does it point out disparity, or does it point out that one system works better?

I was referring to effect. The cause of that effect wasn't at issue but could be a topic of a political discussion I suppose.

 

[JoeWras]

I think the members of this site have a far greater net worth than the average population. If you have $744,000+ then you are very well off financially no matter where you live. People who have more than that may not realize how well off they are but they are very well off. Not counting pensions, I don't know anyone who falls into the top 1%. Of the people I personally know, I don't think any of them are even half way there. I'm not close to half way to $744K and i'm better off than the majority of people I know. I am in the top 10% though despite no inheritance, or large gifts and never making more than $49K gross in any one year in my life. No gains from real estate either. My savings is strictly from "LBYM".

Pensions need to be part of the mix. Public or private. Healthcare has to be part of the mix.

I'm salting a hell of a lot way just to create a pension and ability to pay healthcare. I'd be happy with a lot less (under this magic number) if I had those items covered.

It is a complex subject to analyze.

But I will say I'm truly thankful to live in the developed world, regardless of the differences of systems we have for these things.

 

[Danmar]

Pensions need to be part of the mix. Public or private. Healthcare has to be part of the mix.

I'm salting a hell of a lot way just to create a pension and ability to pay healthcare. I'd be happy with a lot less (under this magic number) if I had those items covered.

It is a complex subject to analyze.

But I will say I'm truly thankful to live in the developed world, regardless of the differences of systems we have for these things.

Agree. Health care is a very big concern for Americans and reflects the large number of threads discussing this in US based discussion sites. Much less a concern in places that have more govt support for health care (like Canada). Not trying to be political just agreeing out a big point of non comparability.

 

[Car-Guy]

In fact, what is useful about wealth comparisons, period? Not saying they aren't interesting, but I don't see a practical use.

Agree, it's interesting but I'm not sure of any practical use other than to realize "once again" how fortunate so many of us are on this board. I easily made the top 1% for the global wealth pyramid but fall to about 2 or 3% for the US only calculations.

 

[Richard4444]

IMHO, it is not whether the number is 1% or X%, but whether you can FIRE with "ENOUGH"

Rich

 

[Car-Guy]

If you have $744,000+ then you are very well off financially no matter where you live.

Agree with that

Not counting pensions, I don't know anyone who falls into the top 1%. Of the people I personally know, I don't think any of them are even half way there.

Really? You don't know "anyone" with ~$372k and you live in the US?.

 

[jkern]

I think the members of this site have a far greater net worth than the average population. If you have $744,000+ then you are very well off financially no matter where you live. People who have more than that may not realize how well off they are but they are very well off. Not counting pensions, I don't know anyone who falls into the top 1%. Of the people I personally know, I don't think any of them are even half way there. I'm not close to half way to $744K and i'm better off than the majority of people I know. I am in the top 10% though despite no inheritance, or large gifts and never making more than $49K gross in any one year in my life. No gains from real estate either. My savings is strictly from "LBYM".

I don't believe that to be true. I know people in the SF Bay Area that bought their home 30 or 40 years ago, have far more equity than $744k, and live and can afford a very normal middle class life. Without selling their home and moving to a lower cost area, they are not wealthy at all.

 

[travelover]

I don't believe that to be true. I know people in the SF Bay Area that bought their home 30 or 40 years ago, have far more equity than $744k, and live and can afford a very normal middle class life. Without selling their home and moving to a lower cost area, they are not wealthy at all.

Living in a very high cost of living area like SF is a luxury unto itself. It is like complaining about the cost to insure and maintain a Rolls Royce.

 

[aaronc879]

Really? You don't know "anyone" with ~$372k and you live in the US?.

I'm not privy to most peoples savings accounts but there is no one i'm aware of that has that much in savings/investable assests. I'm not counting home equity. I live in small town Wisconsin and don't know anyone with a six figure income either so that has a lot to do with it. I have less than half the $372K and I have more than the majority.