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How strong is the correlation between income and wealth (net worth) in the United States, on average?
I think it's not as strong as some people may assume, especially when you look at different age cohorts. For example, there are many retired Americans who have a lot of assets but don't have particularly high incomes, while there are many young or middle-aged adults who may have high incomes but not necessarily much in savings.
I would be interested in hearing people's thoughts, opinions, anecdotes, etc. here.
I guess that pretty much confirms what i believe about the creation of wealth.
You can take that a step further too and that is being frugal and or cheap with out a plan for growing those pennies saved won't result in much wealth either.
A penny saved is a penny earned but it will always be a penny.
Many times those that live the life of a miser would actually be much further ahead spending more and investing better.
Like those who buy a new car and negotiate the best price ,the lowest finance terms and then trade the car back in to the dealer at a low wholesale value.
Grandma could have paid a higher price for the car, got a higher finance rate, sold the car privately for alot more money and come out way ahead of mr negotiater.
How strong is the correlation between income and wealth (net worth) in the United States, on average?
I think it's not as strong as some people may assume, especially when you look at different age cohorts. For example, there are many retired Americans who have a lot of assets but don't have particularly high incomes, while there are many young or middle-aged adults who may have high incomes but not necessarily much in savings.
I would be interested in hearing people's thoughts, opinions, anecdotes, etc. here.
You are right .It depends of relations between parents and children
.If the parents have lots of wealth they will help their children.They could not working because they would have the same income than workers
I would disagree. I do not think you can say that as a general rule.
While inheritance is the easiest way it is just as variable as anything else.
Overall speculators are as variable as a succesful surviving business can be.
Compounding gains on passive long term ingestments can really create some wild sums over 40 years.
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