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What Makes You Well Off In America ?


wealthymattersThe calculator in the post  How Wealthy Would You Have Been In America ? puts out median figures of net worth of Americans depending on age and income.The median value is the quantity lying at the midpoint of a set  of observed values or quantities.

The figures in the post What Americans Consider Rich are the opinions of  the people surveyed by Gallup.

The figures below reveal the ground reality.They show where ,what a person makes puts them on the income pyramid and what a person has salted away puts them on the net worth pyramid.

INCOME GROUPS IN THE U.S.
Median — $25,076
Top 10% — $87,334
Top 5% — $120,212
Top 1% — $277,983
Top 0.5% — $397,949
Top 0.1% — $1,134,849
Top 0.01% — $5,349,795

WHERE DO YOU RANK IN WEALTH?

(If you have a household net worth of X … you rank in the Y percentile):

$50,000 … 60th percentile

$93,000 … 50th percentile
$100,000 … 48th percentile
$200,000 … 34th percentile
$500,000 … 18th percentile
$750,000 … 12th percentile
$827,000 … 10th percentile
$1 million … 8th percentile
$1.4 million … 5th percentile
$6 million … 1st percentile

Wherever in the world you are from,have fun figuring out how well you are doing in American terms.Set yourself some stretch goals for increasing your income and net-worth.And don’t forget to count your blessings.The calculator here will tell you how well you are doing with respect to the whole world: http://wealthymatters.com/2011/01/16/global-rich-list/  .My guess is that if you have internet access and are reading this post in English you must be pretty well off in global terms if not American ones.Remember to focus on real wealth.

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About Keerthika Singaravel
Engineer,Investor,Businessperson

7 Responses to What Makes You Well Off In America ?

  1. Steve Jefferson says:

    I have a portfolio of stocks/bonds worth about $400,000 thanks to an inheritance. My house, in a nice suburb of LA, is worth about $500,000. I am just a Public School Teacher who “got lucky.” Am I in the top 10% of net worth? Where do I stand in relation to others? I have no idea. HELP !
    Thank you.

    • Yes you are in about the top 10% in net worth,according to your government’s statistics.

      I daresay,as a public school teacher,you might be better off than many other public school teachers in the US,especially those without an inheritance or not owning real estate in upscale neighbourhoods.

      But by LA standards, you might be pretty middle class.The reality is that you earn what a school teacher does and might have a little more from dividends and interest.But you are unlikely to be able to enjoy your close to a million net worth without selling your home and securities portfolio. In that sense you are asset rich and cash poor and have a middle class asset allocation in retail assets.What you can spend is just your salary,if you wish to keep your net-worth intact.As a result of your good fortune, my guess is that your family can afford some nice extras that other families of teacher parents can’t afford.But given the cost of living in LA that might not be so great a difference.

      In case you are feeling guilt about your net-worth, don’t.Whoever left you an inheritance worked to make it/preserve it.They probably cared a lot about you.If not you.they have paid their dues to the world for the wealth you now possess.If you have any responsibility,it is to pass this fortune down undiminished.Add to it if you can.This is a favour you cannot return to your benefactor but can pass onto others.Don’t feel obligated to donate it or give it away because you’re told that you have not earned it.Most people pressing for you to give it away could and never would sacrifice what is needed to make such money in the first place and rarely make good decisions with the money they are given.

      Wealth brings with its its own happiness and responsibilities.So be happy and shoulder the responsibilities.Thank God,the gods.fates.Karma or whatever for your “good luck”.Wealth is about more than just hard work,there is always a chance element, so no sense in feeling guilty.Also one million is not so great a wealth.Even 10 times that much makes you a low level millionaire.40 times what you have, in investable surplus,would buy you notice from HNI money managers.400 times your net-worth might allow you to live the life of the millionaires/billionaires shown in the glossies.So don’t worry too much.Relax and enjoy yourself.

  2. Gary says:

    You don’t know the statistical definition of percentile. Using your data on this site, people with a net worth of $6mm are not at the first percentile. They are at the 99th percentile. Just the opposite of what you show on this site. You need to fix it. And if you don’t know what a percentile ranking is, how can I trust your data?

    • The figures are as put out by the US Census Bureau and reported in the WSJ’s Wealth Report.

      This blog is not about mathematics.It is about wealth.As you have got the point I tried to make,I believe others have got it too.And if anyone else has a problem I think your comment ought to clear up the doubts.

      I write what I believe.To accept or not is your privilege.Why trust me blindly ?Now that the idea is out, why not do some research yourself to decide what you want to believe?

    • BlueBirdMama says:

      Dude, you are the one that doesn’t know what percentile means. Being in the 99th percentile means you’re in the top 1%. Think of “percentile” as “how many people are behind you in line”. The 99th percentile in wealth means that 99% of people have less wealth than you. In school, standardized tests will give percentile scores that indicate relative placement– e.g. if you score in 93rd percentile in math, it means you did better than 93 percent of other test takers. Being in the first percentile means you are at the bottom. Being in the 99th percentile means you are in the top 1% of income, i.e. 99% of people are behind you. The reason the use the word “percentile” is because it is unambiguous as to meaning, whereas with percent you would have to specify “top 1%” or “bottom 1%”.

  3. zap197842 says:

    good one

    • Thanks

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