The top 1%
I know this thread has moved on, and this might not be the best timing. But knowledge is golden.
So the top 1%, is not what one thinks it is:
1. A family enters the top 1% or so today with somewhere around $300k to $400k in pre-tax annual income and over $1.2M in net worth. Compared to the average American family with a pre-tax income in the mid-$50k range and net worth around $120k, this probably seems like a lot of money. But, there are big differences even within that top 1%, with the wealth distribution highly skewed towards the top 0.1%.
-The net worth for those in the lower half of the top 1% is usually achieved after decades of education, hard work, saving and investing as a professional or small business person.
-They pay the highest taxes. While an after-tax income of $175k to $250k and net worth in the $1.2M to $1.8M range may seem like a lot of money to most Americans, it doesn't really buy freedom from financial worry or access to the true corridors of power and money.
-In many areas in California or the East Coast, this positions one squarely in the hard working upper-middle class, and strict budgeting will be essential. An income of $190k post tax or $15.8k per month will certainly buy a nice lifestyle but is far from rich.
2. One enters the top 0.5% with about $1.8M.
3. Top 0.25% with $3.1M.
4. Top 0.10% with $5.5M.
5. Top 0.01% with $24.4M.
So....
I know this thread has moved on, and this might not be the best timing. But knowledge is golden.
So the top 1%, is not what one thinks it is:
1. A family enters the top 1% or so today with somewhere around $300k to $400k in pre-tax annual income and over $1.2M in net worth. Compared to the average American family with a pre-tax income in the mid-$50k range and net worth around $120k, this probably seems like a lot of money. But, there are big differences even within that top 1%, with the wealth distribution highly skewed towards the top 0.1%.
-The net worth for those in the lower half of the top 1% is usually achieved after decades of education, hard work, saving and investing as a professional or small business person.
-They pay the highest taxes. While an after-tax income of $175k to $250k and net worth in the $1.2M to $1.8M range may seem like a lot of money to most Americans, it doesn't really buy freedom from financial worry or access to the true corridors of power and money.
-In many areas in California or the East Coast, this positions one squarely in the hard working upper-middle class, and strict budgeting will be essential. An income of $190k post tax or $15.8k per month will certainly buy a nice lifestyle but is far from rich.
2. One enters the top 0.5% with about $1.8M.
3. Top 0.25% with $3.1M.
4. Top 0.10% with $5.5M.
5. Top 0.01% with $24.4M.
So....