Net Worth and Income of Top 1%, 5%, 10% and 20% in America 🇺🇸
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- เผยแพร่เมื่อ 18 พ.ค. 2024
- Curious about the net worth and income of the wealthiest segments in America? In this video, we explore the mind-boggling wealth and income statistics for the top percentiles of Americans. Let's delve into the astonishing realities, disparities, and intriguing insights surrounding the top 20%, 10%, 5%, and 1%.
0:00 Intro
1:12 Wealth Disparities
2:30 Top 20%
2:58 Top 10%
3:29 Top 5%
3:56 Top 1%
5:15 Average Millionaire Income Streams
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Would like to see a similar video for those of us who are retired, yet have substantial wealth even though our annual income is less impressive than others might think.
You work for 40yrs to have $1m in your retirement, meanwhile some people are putting just $10k in a meme coin for just few months and now they're multimillionaires. I pray that anyone who reads this will be successful in life
Starting early is the best way of getting ahead to build wealth, investing remains a priority.
People prefer to spend money on liabilities, rather than investing in assets and be very profitable.
You're so correct, save, invest and spend for necessities and a few small luxuries relatives to total assets ratio
I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted, I became more better the moment I realized this
You guys are right Fx trading is surely a lucrative way to invest whether you want growth, leverage, stable income or something in between
I started contributing to my 401k my second paycheck out of college. It was tough with a mortgage, student loans, etc. I worked six days a week as an Engineer. In those days we got OT on everything over 40 hours. Then I met my partner (now 35 years together) he was into saving/investing as well. By the time we retired we were saving 35 percent of our income . He retired at 63 and I was 57. Saving/Investing on autopilot works.
building wealth is mostly about consistency and not going backwards. preservation of current wealth=wealth built in the future.
@@titolovely8237 Indeed, every month consistently.
This was a great video! Very informative!!
Great info. Deca-millionaire is a personal goal since II heard about term when I read "Millionaire Next door" in my 30s about 12 years ago. Wealthy but frugal and unassuming people with mostly who drove trucks and midsize sedans instead of German brands - this book shocked me as I was one of the folks who think wealth is the same as income and what "people see". Being in the top 1% is a possibility for high income folks making less than 500k/year as long as they leverage the power of compound interest.
Or start a company and sell it.
I enjoy your content 🙂
Great stuff, an interesting subject!
thank you for sharing..
Don’t know where she obtains her statistics from but based on her criteria and commentary my wife and I were in the top 10% before we retired in 2020! Our combined yearly income was $210,000, with annual bonuses of $12,000. We were both in banking industry for a long time, with me going from lending to IT projects. However, I never completed college and she never went to college, which blows her statistics out. I know many like us so her comments are misleading. A lot depends on your age, where you live, etc. Before Covid we had net worth of over $2.5 million. The secret was to save at 6-10% of your earnings, don’t buy new cars and to have pension savings when we retired.
"The secret was to save at 6-10% of your earnings"
That is not enough, less you get lucky but most people either get market returns or less.
Most people should work their way up to 15% to 20% of their pay being invested for the future.
@@mjs28s It depends on how EARLY you start saving and investing. Even small amounts, if started before your 30th birthday will help enormously if done regularly.
Sanjosemike (no longer in CA)
Her statistics are for individuals, not couples/households.
Saving 6 to 10 percent is very little. I saved 90 percent from 1991 until now.
@@peterchen9194 So does my son-in-law and our daughter. They would certainly agree with you. But both are very high earners with a very high IQ.
Both are degreed engineers. I detected her very high IQ when she was only 5.
Unfortunately, most people we are talking about are not in that category.
Sanjosemike (no longer in CA)
Love it Diane! Going towards the 1% but not after!
"Rich" in monetary terms to me means being able to do and spend whatever you want and not worry about it. I ain't rich but I'm comfortable...:)
And that's the true goal everyone should have. If you want that once-in-a-while dinner at XZY restaurant, go and don't worry about the cost. That's the true meaning of wealth. This stuff about keeping up/showing off to the Jones is why Europeans live longer - they take life slower and enjoy it.
@@spocksvulcanbrainDon’t discount the value of “cradle to grave” social supports which Europeans have and Americans do not.
Thanks for an informative video !
Have you ever heard of the Pareto distribution? It helps explain how the to 20% make 1/2 the income. It is also called the 80-20 rule.
I was a lowly military doctor (so I earned 40% of a civilian M.D.) but a net worth of $2.6MM, so I early retired age 37. Although i've enjoyed traveling the world and having fun, I miss working so i will go back to part time work
My real estate produces > $180K per year in net income which exceeds what I earned as an Army doctor
Lowly my ass!! You got paid less but your pension benefits were sky high, hence your early retirement! Or else how did you get that lotto jackpot net worth? Inheritance from grandfolk?
@@wanderingdoc5075Did you complete 20 years of service for retirement? Not that you needed it. Thanks for your service.
Good informative video, thank you. God bless you.👍✌️❤️🙂
Is it by individual or by household ??
I find it helps to be obsessed with money/wealth. I spend a great deal of the day learning about taxes and alternative ways to invest and then reinvest profits.
Financial literacy should be taught in schools...I understand it's starting in some places. My own awakening came with reading The Millionaire Next Door, and after which I read all that I could get my hands on from Graham & Dodd, Buffett, Munger, Lynch, Fisher, and Ramsey. The bottom 20% in the country should be taught the Asian mind set that education/hard work is the way out of poverty. Yes, multiple streams of income is the ticket.
If the teachers knew financial literacy, they wouldn't had stayed in schools making that little money. This is the problem.
Keep them dumb.
@@hugegoogleThere is a financial literacy class in the high school I went to. The problems is the class means little when students are surrounded by family members and peers making bad personal finance moves. Spending more on overpriced brands and depreciating assets like cars, than putting money into 401ks.
Diane, everything in life is relative!
What is considered pocket change for some may be a fortune for another!
For example, an income of $26, 000 may be at the bottom of the totem pole in America while that same amount may shoot one into the top ten percentile in many parts of Latin America, Africa & Asia!
Little wonder why many retired Americans are relocating to the developing world where their dollar can stretch a bit farther!
While you focused on the income of the top 20%. And above as evidence of wealth disparity you need to also look at the total percentage of income taxes they pay
the top 1% of wage earners pay approximately 42% of income taxes, the top 10% pay 74% and the top 25% pay 89% of income taxes.
Another pertinent factor not considered or factored in for this study report is the household size. For example, a Married couple with or without children, a divorced or single with or without dependents, etc.
I have a net worth of the top 5% (not including home equity, just savings) but my income is only about 1/3 of that group. So I'm not sure what to make of these figures. I started investing when I got my first real job at age 28 (I'm almost 55 now). For most of my investing life, I put away 10-12% of my income (competing expenses like house, kids, etc.) but since I turned 50 I've been putting away 36% of my income and another $25K in after-tax income. Now that I've paid off my car, I plan to increase my savings rate to around 45%. My goal is to comfortably retire at age 60.
It means you are both really good with your money and you are really good at investing it.
The difference is the discipline required on your part will serve you in retirement whereas those with large salaries often have large lifestyles.
My situation is the same. I also found that confusing
Concentrate on understanding your investments. Once you retire your sole income will be from your ability to allocate capital,enough to meet yearly expenses the rest compounding tax free. Be aware of the capital gains tax brackets and try to take advantage of the tax free bracket when possible.
Me too...my income is middle class but net worth is top 10%
Thanks so much. I do take some comfort in the fact that the mortality rate for the top earners has held steady at 100 percent for a significant period of time. Eternity is quite a long time.
Well actually i am 48 and have a net worth of $15mln. It all depends on your spending and the yield on your net worth. I feel very comfortable and we can do everything we want, but we can't fly private and have 3 houses. But we can spend about $30k a month. So its very very comfortable
Wait until they shut off the power and there’s no food. Let’s see how comfortable you are.
We live on electricity only and have 38 solar panels. In our garden we grow lots of vegetables and fruit. What color is your Bugatti ?
@@leonplanken5506
Hope you have a giant gate and moat. The starving populace will be heading to your place for sustenance. Gold.
There’s something in this video that’s incredibly important… compounding..
Our income is barely in the 20% bracket, while our net worth is solidly in the 5%… save, sacrifice instant gratification and “forget” about the money you’ve already invested. It’ll be there when you REALLY need it.
The more important factors are having low EXPENSES and NO DEBT . There are many people earning six figure sums , but are FLAT BROKE because of their living expenses and what they owe.
FACT - The top 1% of earners in the USA
pay nearly half of all taxes paid. Try telling me how that's "unfair."
I’m top 5% but I will always live like in the 90% I guess some expending habits never change lol. Thanks mom!!! Made me extremely frugal
Great information! I got a looong ways to go!
Yes, I'm rich but I don't have a whole lot of money but I don't need anything and I don't use all of what I do make because I don't need anything.
Hi, Nice video. I have a question? Are the income and net worth figures you mentioned based on individual or household income? In other words, if my wife and I have a net worth equal to X, are your figures referring to X or 0.5X? Same question on Income. Thanks!
Based on the numbers my guess is that’s household
Income and net worth do not always align in this way. For example, my income is modest, just under top 20%, although net worth is in top 2-3% or so. So it’s unclear which metric takes precedence?
Also, net worth is a result of assets that are not immediately liquid, so I feel secure, but not close to wealthy.
Definitely net worth. It's what you keep, not what you make.
annual income is income before taxes and expenses?
What makes up expenses ? Business expenses? Grocery ?
why the age is not considered?
Does it need both income and net worth to fit in the proper bracket? Or only one of these two condititions?
Net worth is the metric. Income is fine, but not relevant to this ranking.
That’s good. Our net wealth puts us in the 5% level but our income is below the 20% level….
I think it should be, whats the point of making 100k/200k a year if you don't have any assets. Also what if you have 1 million dollars in assets, but 700k is in a 401k, and 300 k in a brokerage/bank, and you don't have a job. You shouldn't be in the top 5 or 10% in my eyes
Many households in Hawaii who have paid off their homes have a net worth of $1M+ but their incomes may be considerably less than $100K/year - especially those on a fixed income. In other words, they're property millionaires but only have their savings and Social Security.
If you work in a STEM field and live below your means it's not that rare to be able to break into the top 10% income-wise, and as your investments grow to break into the top 5% as far as net worth goes. I'm not saying it's an easy thing. But many of the people I work with in a nothing-special as far as pay and benefits go software company are in that position. And you'd never know it, they drive older boring cars, they don't wear designer clothes (or if they do they it means scored big at the thrift store).
Would like to see a breakdown of the 2%-4% since we have 1% and 5%. We fall into that category and have worked hard to get there. Even though that is good, you'd be shocked at the costs involved with 2 kids about to start college, (assuming you don't want them to graduate with debt) 4 cars (kids need to drive,) insurance, retirement savings, taxes, and the massive inflation from this administration. It comes in, and flies right back out.
Keep in mind that by far, most of the income taxes are paid by the top 20%.
Most of the top 10% got there the old-fashioned way by working hard for 40 years, living a frugal life, and
investing 20% of their income every year.
Nothing but the perverse and growing welfare system is stopping anyone else from doing the same.
No one feels rich in this inflationary environment unless your net worth hits $10M.
Would like to see you and others like you address the mobility of the American population across income and net worth quintiles over time.
When I was 20 I was in the bottom 20% quintile earning minimum wage at a full time job, paying for college and had essentially a zero net worth.
At 58, I am in the top 20% for income and in the top 5% for net worth.
The fact is that most of the population is mobile over their lives and do not permanently occupy that bottom - and here's the secret a lot of people don't understand the top 20% - for long periods of time.
Income inequality is a poisonous and loaded term and it assumes too many things that simply aren't true:
1. That most people in the bottom and top quintiles are permanent residents of those income/net worth levels.
2. That the inequality is the fault of the hard working and successful at the expense of the poor. (I know - it is a logical fallacy as well as being completely untrue. Poor people are poor because of behavior and the same is true of wealthy people)
- 2a. Most wealthy people in fact do not inherit their wealth, they build it on their own.
3. That if the wealthy weren't so greedy, the poor wouldn't be so poor.
- 3a. No amount of whining and moaning is going to make it moral or desirable to steal the fruits of Peter's labor to give to Paul through the coercion of any Local, State, or Federal government. Theft is theft whether your neighbor comes and steals your property or some government lacky does it. The WHY simply doesn't matter.
Let's focus on the behaviors, habits, and outlooks of the successful and promulgate those traits across society rather than talking about "wealth inequality"
Exceptionally well said!
Thanks!
Never made more than $200k a year, but managed to accumulate a couple million and then some. I do hope to attain "decamillionaire" before retirement.
Why not just retire now? Seems you have plenty already, well unless you absolutely love working. I did not and retired at 52. At some point your investments returns more than your job and time is your most precious asset as it is limited, not money. Who cares if you die with 10M or frankly nothing? What really matters to you is how you lived and your experiences. The meaning of life is to enjoy it as much as possible, don't waste it working. If you are doing something you don't really enjoy doing and don't need to be doing you are wasting your time.
@Uncommonsensetoo That's a legit question. I do enjoy my job. I have left corporate work and I do contract work as a consultant. I train and coach managers and leaders in a variety of well-known companies. It is a work model that allows me scheduling flexibility and an income that is still above my investment income. My net worth goals are also considering inflation and the fact that I hope to leave some to my family and/or donate to causes that I care about.
@@masterchinese28 Well, I suppose it depends on your situation. I would say though that focusing on a particular financial goal of 10M rather than on living your life to it's fullest is misguided in my opinion. I have no dependents so to me it made no sense to keep working. In fact, about 1/3 of my assets have accumulated in the 6 years after I retired due to rental income, and home/investment appreciations. I just love owning my time fully and can do whatever I want whenever I want. I go on trips for months at a time sometimes with no time limitation at all. I have no stress (which shortens life) and can spend much of my time focusing on staying in great shape with a healthy lifestyle and hopefully extend my life another 40-50 years.
Wooo Top 10, next stop numba FIVEEEEE
Forget all this...If you are in the highest bracket of income tax than you are rich. Simple.
Why do you use the word "disparity" rather than "range"?
I’m going to turn 50 next month and have a net worth of almost $2.5 million and I don’t feel a millionaire 😢
Inflation. Millionaires mean nothing after the Covid money printing.
FJB!!!!!!
My net worth is 2.1 million. That seems like it’s not a lot of money. I consider that slightly above average.
So I’m in top 5% learn something new every day
I thought the top 10% had a net worth of 1.9 mil. 900k seems very low for this bracket.
there is no way 10 percent of people have 1.9 mil or more Most of the wealth is concentrated in the top 3% imo
No it's not. No way.
Keep in mind for a population of 330 million, 10% would mean over 33 million have over $854,900 in net worth. 33M is a TON of people.
@@mrbizi5652 True.
Nowadays I would not even count my main house under my net worth as I need a house to live regardless.
One of the most important aspects in life, yet we rarely if ever have this conversation with friends or even family. Wether its because your embarrassed with how little you or how much you have. saved. All it leaves is people confused and making assumptions…..but maybe thats the whole idea.
These numbers seem low, but I think it's because it's not broken down by age.
It’s interesting how few people have 1 million in investable assets. The millionaire next door is about 5 million people in USA by this criteria if don’t count the house
About 1.5 percent of population
how about the other 64% ??
Replace the word "individual" with "household" everytime she says it. As these results where based on household numbers, some that had 2 or more income earners in the household. And while generally single individuals do make more, the often work more and spend less until they are 50+ so statistics can be leveraged anyway we want to make them tell the story we want to see. The reverse needs to be shown more often, 80% of American households make under 60k a year, so congrats, your watching this and are likely the norm. There is nothing wrong with that.
The wealth number and income lever really depends on ones age…. a 21 year old is not going to make more then a 50 year old…. I’d prefer to see these averages spread out of age groups…. I’m in my 50s I certainly make more then when I was in my 20s… age bracket wealth is so much more important.. would love to see a video on that...
Are you sure this number is individual or household?
Holla to my Viet people 👍
3:54 *TOP 1%*
The top 5% has a higher median net worth than $1,030,000. That is an error. It is more like $2,500,000 according to most estimates.
It's actually all over the place and probably higher as the wealthier you are the better at hiding your wealth is in an environment where more and more are struggling hence they are changing the rules. Numbers can only be factual when every transaction is automated but that will never happen. If the bottom 80% found out how underpaid they are.... well history has a way to repeat since it has always been the few who lead - or mislead.
I agree. Her statistics are wrong. She needs to at least double her numbers for the median at the stated percentiles.
Im not in these groups, but as mamma said, im still her favorite youngest born😂
❤ Diane is Hawt! ❤
As a 75 yo, it is a little late for me to strive to accumulate a large wealth. I have always wanted to make this world a better place to live. The most crucial problem to solve is finding a new source of energy. Having a career in Analytical Chemistry, after retiring I found a high probability of finding a new source of energy. It is a reaction at the quantum scale, for splitting water.
For the top 5 the net worth barely 3 times annual income. Where does all the money go?
I’m in the top 10% but that’s poor in the Bay Area
SO, where am I at? Single 72 year old make, retired, with an annual income of $72,000.00 per year, and a Net Worth of $1.8million?
$1.6MM here at 35 years old
Brother I'm honest and I am very kindness generosity respect and I only need to others is honestly and respect thats it
America is a hellscape
How many poor people in the US? Sounds like you might know something about that working at the WB.
If you don’t feel rich at 10 mil retrain your brain and go blow some money on trips vacations and and fun otherwise your kids will blow it for you
So there is less Bitcoin then there are millionaires in the USA? wow.
I have a net worth of around seven million but only have an income of 160k. Net worth and income have no correlation to me.
Dollar cost average in sp500….not that hard. People spend too much on wants instead of needs…..
Obsession over wealth is a fools errand,when you die it means diddly squat.
top1 is hard to reach
You should be more consistent with your terminology through out your presentation. E.G. You starting with using Net Income and then switch to Annual income and they are not the same.
A million dollars just ain’t what it used to be. Inflation of the past few years has reduced its value significantly. Keep saving!
Accumulation of wealth is good, but teaching your kids financial literacy and self discipline on money is the key to creating a dynasty.
I can pass $100m to the kids, but if they are financially illiterate, all of that will evaporate in one generation.
But if I pass $1m to my financially literate kid, he can grow that to $100m within his lifetime just from investing in an index fund.
You're spot on, this is the key, and my parents have ingrained this in me from a young age. Once you get to a certain level, the money should never run out and grow indefinitely, becoming more substantial as the principal compounds. I am fortunate enough to come from a deca family, and at max my parents only spend 1/4 of the interest that is earned off the principle each year never touching it, allowing it to continue growing exponentially.
What is that popping noise and why is it so necessary to listen to it repeatedly throughout this video? If anybody knows the answer please let me know!
Am top 5%? It doesn't feel like it🤔
These figures don't seem accurate... Dqydj lists $1.5 million at 88th percentile which seems more believable
I think a decamillionaire today is basically a redefined term for what a millionaire was in the 1900s. I've a net worth of a few mil and don't feel wealthy at all. I might be able to double it in the next few years, at which point I would feel "comfortable" but not wealthy. Being a millionaire doesn't mean much these days.
Automatic thumbs up for anyone doing a video under 10:00! There is nothing more annoying than someone wasting your time babbling in order to game the algorithim. Besides, good content. Thanks.
Not gonna' Lie -- I clicked on the pretty face.
million is hooked on phonics Ohno batman were in a jam yah tada hahaha bad Colby cheese 🐰 🧀 ♥️
Your data are 2 or 3 years ago, not 2022 or 2023
I am in poverty & I am awaiting Biden to give me other people's money. 😂
Biden's expectation is you will vote for him in exchange for him giving you other people's money.
😂
Where’s the top 0.001%. I feel excluded. 😂
A million dollars ain’t what it used to be.
When she says income, she means net income after income tax, property taxes, and job-related expenses. So $173k net income means more than $300k earning per year in expensive metropolitan areas.
💰💵🎉😁
Anh yeu em
You interchangeably use individuals and households. Hard to tell if your numbers are for individuals or a family unit. It will be great to clarify.
I’m sorry, but your first slide past the introduction is entitled “wealth disparities.“ I don’t give a damn about wealth disparity. Wealth disparities are generally caused because people won’t get off their ass and go to work. As someone from Asia, your family should understand that because Asians are some of the world’s most industrious people. So don’t spend time being politically correct and giving credence to the shibboleth of wealth disparity in the United States.