Summary Findings – Net Worth Comparison USA

[ShokWaveRider]

I was quite stunned when I read this. These are NOT large numbers in the grand scheme of things. I am sure most of those here are in the top 5%.

Net Worth USA Percentiles – Top 1%, 5%, 10%, and 50% in Net Worth

The top 1% of net worth in USA in 2020 = $10,500,000
The top 2% of net worth in USA in 2020 = $2,400,000
The top 5% of net worth in USA in 2020 = $1,000,000
The top 10% of net worth in USA in 2020 = $830,000
The top 50% of net worth in USA in 2020 = $507,000

I must admit in this time of continuous doom and gloom, it made me great.

I did not think a Poll would be appropriate as folk would not be comfortable sharing their own position. Feel free to do so in a post.

 

[jimbee]

ShokWaveRider, are these numbers for individuals or households?

 

[ShokWaveRider]

ShokWaveRider, are these numbers for individuals or households?

It did not say, but I would guess that it could be extrapolated to singles or couples or family unit (not including children).

 

[pb4uski]

How measured? Include home equity?

I presume that defined benefit pensions, SPIAs, the value of SS and deferred income taxes were excluded. I'm guessing that it was per household.

 

[ShokWaveRider]

How measured? Include home equity?

I presume that defined benefit pensions, SPIAs, the value of SS and deferred income taxes were excluded. I'm guessing that it was per household.

"Net Worth USA Percentiles – Top 1%, 5%, 10%, and 50% in Net Worth"

I include our home in our net worth.

 

[target2019]

I was reading a FRED Blog post earlier today. Makes a good comparison I think, as it depicts how wealth quickly recovers and then increases for one-half of population, even during the Great Recession.
https://fredblog.stlouisfed.org/2020/08/the-impact-of-recessions-on-net-worth/

 

[Gumby]

All I can say is that it sure doesn't feel like it.

 

[Big_Hitter]

so 500K is the median, what is the mean?

 

[MichaelB]

What is the source for these numbers?

 

[ShokWaveRider]

What is the source for these numbers?

Some pundit....

https://www.thekickassentrepreneur.com/net-worth-percentile-calculator-usa/

But it compares favourably with others I have seen.

 

[Sojourner]

ShokWaveRider, are these numbers for individuals or households?

so 500K is the median, what is the mean?

Comparing these numbers with those from the Federal Reserve's 2019 survey of consumer finances, I'd say they are referring to average household net worth. The Fed's survey came up with $692k as the average net worth of all households in 2019, and $97k as the median. These net worth figures include all assets, such as home equity, 401(k), savings, etc.

Regardless of the specifics, I agree with @ShokWaveRider that seeing numbers like these does make me feel good about my financial situation. I'm not in the top 1%, but pretty solidly in the top 2. Can't complain.

 

[target2019]

What is the source for these numbers?

Some pundit....

https://www.thekickassentrepreneur.com/net-worth-percentile-calculator-usa/

But it compares favourably with others I have seen.

From the article:

Population data extracted from US Census. and the statistics bureau,, and wealth stats from Wealthx.

 

[Car-Guy]

Makes me "feel" rich... There numbers sure seem low to me based on other charts and data I've seen... (except maybe the top 1%)

 

[Rianne]

Those %’s make me feel rich, but we’re so middle class. I never considered us in that category. How sad for 50% of our population who want to RE. It’d be interesting to know ages that go with the data.

 

[Car-Guy]

Comfortable VS Wealthy.... In Schwab's opinion...

https://www.usatoday.com/story/mone...t-does-take-rich-less-than-before/5521307002/

"They now believe that, on average, it takes $655,000 to be financially comfortable, down from $934,000 in January, according to Charles Schwab’s 2020 Modern Wealth survey. And they think the minimum benchmark to be considered wealthy is $2 million, down from $2.6 million in January. The survey of 1,000 Americans was conducted for Schwab by Logica Research June 25-July 2."

 

[ShokWaveRider]

Comfortable VS Wealthy.... In Schwab's opinion...

https://www.usatoday.com/story/mone...t-does-take-rich-less-than-before/5521307002/

"They now believe that, on average, it takes $655,000 to be financially comfortable, down from $934,000 in January, according to Charles Schwab’s 2020 Modern Wealth survey. And they think the minimum benchmark to be considered wealthy is $2 million, down from $2.6 million in January. The survey of 1,000 Americans was conducted for Schwab by Logica Research June 25-July 2."

LOL, who are they trying to patronize? I hardly consider us Wealthy! No private jets for us. Can we afford a Bentley or a McLaren Car, yes, but that does not make us wealthy.

 

[Car-Guy]

LOL, who are they trying to patronize? I hardly consider us Wealthy! No private jets for us. Can we afford a Bentley or a McLaren Car, yes, but that does not make us wealthy.

From my POV, "as a retiree", I consider 2m as cautiously comfortable.. 10+m as reasonably well off, 25+m as borderline wealthy and 50m as FU money. But that's me...

 

[ShokWaveRider]

From my POV, "as a retiree", I consider 2m as cautiously comfortable.. 10+m as reasonable well off, 25+m as borderline wealthy and 50m as FU money. But that's me...

+1

 

[youbet]

Comfortable VS Wealthy.... In Schwab's opinion...

https://www.usatoday.com/story/mone...t-does-take-rich-less-than-before/5521307002/

"They now believe that, on average, it takes $655,000 to be financially comfortable, down from $934,000 in January, according to Charles Schwab’s 2020 Modern Wealth survey. And they think the minimum benchmark to be considered wealthy is $2 million, down from $2.6 million in January. The survey of 1,000 Americans was conducted for Schwab by Logica Research June 25-July 2."

Why did you refer to this as "Schwab's Opinion?"

 

[Car-Guy]

Why did you refer to this as "Schwab's Opinion?"

Because it's theirs, not mine.

 

[RobbieB]

To a guy with 5 grand NW a guy with half a mill is wealthy.

When you have 5 mill it takes half a billion.

 

[youbet]

From my POV, "as a retiree", I consider 2m as cautiously comfortable.. 10+m as reasonably well off, 25+m as borderline wealthy and 50m as FU money. But that's me...

At the lower level of the numbers you mention, doesn't current income and it's probability of continuing play a significant role? For example, one athlete retires with 2 million bux and little income potential to live on the rest of his life. Another, after his rookie year, has 2 million bux and also a guaranteed contract paying 25 million annually for the next 3 years. Big difference.

Just saying, I think that potential future earnings are seldom mentioned in these surveys or discussions but likely often play a big role.

 

[youbet]

Because it's theirs, not mine.

It looked to me like Schwab administered a survey and published the results. Isn't that the case?

 

[Car-Guy]

It looked to me like Schwab administered a survey and published the results. Isn't that the case?

I seriously doubt that Charles Schwab does much anything himself. Either the employees or contractors do the work...

It does say "according to Charles Schwab’s 2020 Modern Wealth survey"... Close enough for me!

 

[Car-Guy]

At the lower level of the numbers you mention, doesn't current income and it's probability of continuing play a significant role? For example, one athlete retires with 2 million bux and little income potential to live on the rest of his life. Another, after his rookie year, has 2 million bux and also a guaranteed contract paying 25 million annually for the next 3 years. Big difference.

Just saying, I think that potential future earnings are seldom mentioned in these surveys or discussions but likely often play a big role.

Agree, there are endless variables.