Archive for the ‘Net Worth’ Category

So, how many “rich” folks are there?

August 22, 2019

Yesterday we reported survey results from Schwab and the WSJ that pegged the threshold for being classified as “rich” or “wealthy” at about $2.5 million.

Just being a millionaire doesn’t make the cut any more.

See What’s the “magic number” that makes you wealthy?

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Source: NY Times

OK, so how many households do make the cut?

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Who’s still smarting from the financial crisis?

June 5, 2013

According to the Federal Reserve Bank of St. Louis’ 2012 Annual Report

In nominal terms (i.e. ignoring inflation) aggregate household net worth at the end of 2012 was $66.1 trillion, nearly back to its precrisis peak of $67.4 trillion, reached at the end of the third quarter of 2007.

After falling to $51.4 trillion at the end of the first quarter of 2009, the subsequent increase of $14.7 trillion through the end of last year.

In other words – nominal aggregate household net worth (the blue line) is almost back to where it was before the financial crisis … call it down 3% from the peak.

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But … there’s way more to the story.

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How many millionaires & billionaires are there in the US ?

December 4, 2012

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Based on a very rigorous analysis by Robert Wolff of NYU …

Scored in constant 1995 dollars – i.e. eliminating the effects of inflation  …

  • Roughly 6.5% of US households – about 7.5 million — have a net worth greater than $1 million.
  • That’s up 5.25% since 2007 … an increase from 6.3% of households
  • But, the number of households with net worth greater than $5 million declined by 27.5% from 2007
  • And, the number of households with net worth greater than $10 million declined by 25% from 2007

Bottom line: More millionaires … but they have fewer millions.

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Source: Wolff, NYU, Asset Price Meltdown and Wealth of the Middle Class

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By one metric, household net worth is running at historical levels …

November 30, 2012

Interesting analysis by the CBO

Punch line:  When you delate the numbers, i.e. take out inflation effects – household net worth is roughly 5 times disposable income … that’s down from the dot-com and housing booms & busts, but roughly at historical levels.

In other words, the market bubbles were more like sugar-rush outliers … than “new normals”.

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