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US wealth in perspective...
10-27-2011, 12:40 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Oct 2009
Posts: 1,190
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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 .
Finance Addict
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10-27-2011, 12:50 PM
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#2
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Recycles dryer sheets
Join Date: Sep 2009
Posts: 353
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Quote:
Originally Posted by LARS
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 .
Finance Addict
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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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10-27-2011, 04:09 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,992
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Quote:
Originally Posted by smjsl
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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+1
Clearly
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10-27-2011, 04:23 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,878
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I sure don't feel like I'm in the 1% bracket !
__________________
Earning money is an action, saving money is a behavior, growing money takes a well diversified portfolio and the discipline to ignore market swings.
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10-27-2011, 05:57 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Location: Denver
Posts: 3,506
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1 % of 7,000,000,000 (world population ) is 70,000,000.
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10-28-2011, 10:33 AM
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#6
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Dryer sheet aficionado
Join Date: May 2011
Posts: 32
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Quote:
Originally Posted by smjsl
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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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)
__________________
Where did the time go?
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10-28-2011, 10:38 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Oct 2010
Location: Waimanalo, HI
Posts: 1,881
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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.
__________________
Greg (retired in 2010 at age 68, state pension)
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10-28-2011, 11:33 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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I am the 1% (worldwide).
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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10-29-2011, 04:57 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Nov 2008
Posts: 3,395
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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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10-29-2011, 09:51 AM
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#10
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
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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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10-30-2011, 04:43 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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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.
Quote:
Originally Posted by LARS
If you're feeling poor on a comparative basis: change who you're comparing yourself to and feel better.
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__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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10-30-2011, 10:29 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,821
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Quote:
Originally Posted by obgyn65
... 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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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.
-ERD50
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10-30-2011, 10:00 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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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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