NYT article "Are you rich?"

[thedigitalone]

https://www.nytimes.com/interactive/2019/08/12/upshot/are-you-rich-where-does-your-net-worth-rank-wealth.html

Actually a pretty well balanced article.

[DeniseNJ]

Why are the wealthy so much wealthier than everyone else?

One reason is that the rich tend to store their wealth in businesses and stocks, and those in the middle class store theirs in housing.

The top 10 percent of the wealthiest households own nearly 90 percent of the stocks in America, while those in the bottom 90 percent own a little more than half of all the real estate in America.

That's very interesting.  This would very much support the Don't PayOff Your Mortgage crowd, I think.  It wouls seem that your house is not going to do as well as the market.

[terran]

Why are the wealthy so much wealthier than everyone else?

One reason is that the rich tend to store their wealth in businesses and stocks, and those in the middle class store theirs in housing.

The top 10 percent of the wealthiest households own nearly 90 percent of the stocks in America, while those in the bottom 90 percent own a little more than half of all the real estate in America.

That's very interesting.  This would very much support the Don't PayOff Your Mortgage crowd, I think.  It wouls seem that your house is not going to do as well as the market.

That might be a stretch. I'm not going to get into the mortgage payoff debate, but saying "since the rich have most of their wealth in stocks and the middle class has most of their wealth in their house, that means investing in stocks instead of paying off your house is more likely to make you rich." All you know by knowing the rich have most of their wealth in stocks is that they have most of their wealth in stocks. They may also have a paid off house in addition to owning stocks. It's probably more accurate to say the middle class owns a house, the rich own a house and they own stocks.

[roomtempmayo]

Why are the wealthy so much wealthier than everyone else?

One reason is that the rich tend to store their wealth in businesses and stocks, and those in the middle class store theirs in housing.

The top 10 percent of the wealthiest households own nearly 90 percent of the stocks in America, while those in the bottom 90 percent own a little more than half of all the real estate in America.

That's very interesting.  This would very much support the Don't PayOff Your Mortgage crowd, I think.  It wouls seem that your house is not going to do as well as the market.

That might be a stretch. I'm not going to get into the mortgage payoff debate, but saying "since the rich have most of their wealth in stocks and the middle class has most of their wealth in their house, that means investing in stocks instead of paying off your house is more likely to make you rich." All you know by knowing the rich have most of their wealth in stocks is that they have most of their wealth in stocks. They may also have a paid off house in addition to owning stocks. It's probably more accurate to say the middle class owns a house, the rich own a house and they own stocks.

Housing costs don't scale with income or wealth.

[terran]

Housing costs don't scale with income or wealth.

That's a more succinct way to say it :-)

[calimom]

Why are the wealthy so much wealthier than everyone else?

One reason is that the rich tend to store their wealth in businesses and stocks, and those in the middle class store theirs in housing.

The top 10 percent of the wealthiest households own nearly 90 percent of the stocks in America, while those in the bottom 90 percent own a little more than half of all the real estate in America.

That's very interesting.  This would very much support the Don't PayOff Your Mortgage crowd, I think.  It wouls seem that your house is not going to do as well as the market.

That might be a stretch. I'm not going to get into the mortgage payoff debate, but saying "since the rich have most of their wealth in stocks and the middle class has most of their wealth in their house, that means investing in stocks instead of paying off your house is more likely to make you rich." All you know by knowing the rich have most of their wealth in stocks is that they have most of their wealth in stocks. They may also have a paid off house in addition to owning stocks. It's probably more accurate to say the middle class owns a house, the rich own a house and they own stocks.

Or they own 4 paid off houses, the values combined are nowhere near their full net worth.

[Just Joe]

Or the middle class has little money left for stocks after paying for two cars and a mortgage. The rich do.

[2sk22]

Or the middle class has little money left for stocks after paying for two cars and a mortgage. The rich do.

Exactly - furthermore, stocks are volatile investments that really start to pay off only over the long run. I was recently looking at my Fidelity brokerage statement for 2008 - the drop in value was significant. We were fortunate in my household that we didn't have to sell any shares at the trough of the market.

[remizidae]

I got 15th percentile! And yet, I still consider myself rich. I'd rather be high debt/high assets/high income than low everything.

[Much Fishing to Do]

Wow, that 75th income percentile point (about 120k)  for 55-64 age group is shocking wrt nw (only @ about 2x income)

[DadJokes]

Only in the 80th percentile- I guess I need to stop thinking that I'm rich.

[dodojojo]

Nothing like the NYTimes telling me I'm not rich.  Sorry.

[mm1970]

Not rich.  Income says we aren't rich, net worth (I don't track it often), on the cusp.  A couple hundred thousand makes the difference.  Prob not based on current markets.

[ReadySetMillionaire]

I'm checking in at 85th percentile. NYT tells me that's not rich, but I feel very fortunate.

[ecchastang]

85th percentile for the 35-44 category.  Quite surprised I am that high. 

[jps]

It told me I'm rich, but as far as I can tell that's in part because of the parameters. I said that I thought 90th percentile was rich, and for my age group I am just barely in the 90th percentile (I'm young so not having student loans almost gets you there by itself).

I do feel pretty rich though. I have everything that I need, and lots that I want. I have a warm bed and get to gorge myself on delicious food and locally grown produce every night. Accounting for the whole of human existence, I am a king.

[use2betrix]

18-34 I’m well above 95th percentile but also well below 99th in net worth.

For income I’m about $190k/yr above what I needed to make the 95th percentile. Not bad for a chump in construction with an associated degree.

[Bloop Bloop]

I didn't take the test. I don't see the use in comparing myself to the 'average' population considering that each of us has specific traits (intelligence, age, background, education, work history) which make us non-average. Better to compare yourself firstly to your own wants and desires, and then secondly, if you must, to your own cohort/profession.

[DeniseNJ]

Why are the wealthy so much wealthier than everyone else?

One reason is that the rich tend to store their wealth in businesses and stocks, and those in the middle class store theirs in housing.

The top 10 percent of the wealthiest households own nearly 90 percent of the stocks in America, while those in the bottom 90 percent own a little more than half of all the real estate in America.

That's very interesting.  This would very much support the Don't PayOff Your Mortgage crowd, I think.  It wouls seem that your house is not going to do as well as the market.

That might be a stretch. I'm not going to get into the mortgage payoff debate, but saying "since the rich have most of their wealth in stocks and the middle class has most of their wealth in their house, that means investing in stocks instead of paying off your house is more likely to make you rich." All you know by knowing the rich have most of their wealth in stocks is that they have most of their wealth in stocks. They may also have a paid off house in addition to owning stocks. It's probably more accurate to say the middle class owns a house, the rich own a house and they own stocks.

Or they own 4 paid off houses, the values combined are nowhere near their full net worth.

Yes, I think this is most likely. I was misreading/misled.  I do think this refers to paid houses since it refers to storing wealth. But if the bottom 90% own half the houses but only 10% of the stock, then the top 10% owns 90% of the stock AND 50% of the homes.  I think that means you have cash left over after you buy your house to also but stock.