5 Lessons from the "rich"

[tryan]

Thought this article was interesting. Specically:

96% own thier home and 55% have a mortgage.

Enjoy!

http://articles.moneycentral.msn.co...apeTheRatRace/5LessonsTheRichCanTeachYou.aspx

 

[cute fuzzy bunny]

Investments:

" * 46% in stocks and bonds, managed accounts, IRAs, mutual funds, deposits and alternative investments
* 10% in pensions and defined-contribution plans like 401(k)s
* 6% in insurance and annuities"

and from the article

10% in principal residence
2.4% in cars

Wonder how that compares with the rest of us...?

I'm a lot heavier in principal residence, cars and equities.

 

[Sam]

20% in residence
2.0% in cars.

 

[Sandy]

Currenlty:

28% in residence
1.6% in cars

 

[dex]

17.6% residence
0.35% in car

I'm assuming this is the percentage of net worth

If the example of 2.4% in cars is for a person with a net worth of 2 million that would be 48K in cars - two 24K cars maybe? It sounds high to me.

 

[chinaco]

When they say net worth... net after all liabilities including taxes.

 

[Sheryl]

Interesting - we have 11.5% in principal res. and less than 1% in vehicles. (two crappy old Toyotas) but that's about to change.

The new vehicle I'm looking at will bump us up to about 1.5%.

 

[d]

about 10% in residence
<1% autos

 

[calmloki]

7.5% in our home, 0.216% in our 2 old bimmers. This is net worth, not figuring cost of sale or tax on income properties. We don't keep up with the Joneses too well. But we're comfortable with our lifestyle.

 

[simple girl]

13% in residence
0.7% in car

 

[Moemg]

30 % in residence
.03% in car

 

[cute fuzzy bunny]

hah...most of us are house heavy and car light.

Reminds me of an old movie quote, forget where its from...where someone said the rich buy appreciating assets and lease/rent depreciating ones while the poor do the exact opposite.

 

[Khan]

>10% in residence

>.05% in car

 

[kumquat]

10% residence
2.5% cars

 

[califdreamer]

16% residence
0.2% car

 

[samclem]

13% in residence
1% in cars

 

[Enuff2Eat]

16% residence

0.2% car; just about to change soon

enuff

 

[dgalbraith100]

6.2% Residence
2.6% Cars

This is an interesting experiment, not sure what it means though . I have intentionally kept my mortgage high, and invested the money in other things rather than my residence. When I got the loan, mortgage money was cheap. (5.25%)

-d.

 

[unclemick]

8.5% residence and 1.5% suv/truck - less if you back out the financing and count equity only.

Now back in the 'old days' - heh heh in my trusty fish camp and paid up truck - I had it honked down really cheap. Property taxes were under $200/yr until they 'discovered' my remodelling.

heh heh heh -

 

[DRiP Guy]

30% residence (100% paid off)
7.3% cars (it's a fetish.)

 

[HFWR]

Home - 39%

Equity - 10%

Truck - 1.4%

 

[macdaddy]

Condo 20%
T Pass 0.0003%

 

[kjpliny]

home 60%
cars 1.5%
pm 1.5%
funds 27%
cash 10%

Wonder if I should cash out some of the home equity and put the money to work...

 

[Gumby]

Home equity 40% (bought at an extraordinarily good price in 1992 and rode the market up)
Cars 0.3%

 

[scrinch]

Home equity 22%
Vehicles 0.5%