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Old 06-16-2020, 02:24 PM
 
787 posts, read 224,755 times
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Quote:
Originally Posted by ddm2k View Post
Richest 1% referring to net worth (because that's how "richest" is determined, not on income year-to-year) I have a theory.

It's one thing to have enough money to pay your bills.
It's one thing to have enough money to one day never return to work.
It's one thing to pay for your kids' college, wedding, and down payment on first house.

But it's quite another to be at a point where you haven't had to sell a single share of ANYTHING in the throes of a recession when we were shaken down with a one-two punch of mass job losses combined with a market correction.

That's why "the market is so good to the richest 1%".
I didn't sell a single share of ANYTHING during the throws of the recession. I bought more and am up >50% on several equities in 3 months.

I'm in the top 2-3% for my age.
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Old 06-16-2020, 03:07 PM
 
8,305 posts, read 2,384,252 times
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Quote:
Originally Posted by jonbenson View Post
Ok maybe I would have titled it

Clear this up for me about the top 1% of wealth in America



anyway , this is the question


How does the top 1% of American households hold almost as much wealth as the middle- and upper-middle classes combined yet only make about 20% of all dollars earned in America ?

(see each article n the links on the OP) , thanks
Walmart.
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Old 06-16-2020, 03:29 PM
 
7,668 posts, read 3,618,981 times
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Quote:
Originally Posted by jonbenson View Post
yes let's forget about income


How does the top 1% of American households hold almost as much wealth as the middle- and upper-middle classes combined yet only make about 20% of all dollars earned in America ?
Sorry, but asking the same question the other way round still gets you the same answer: wealth is not the same as income. ("Making Dollars" = income)
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Old 06-16-2020, 07:49 PM
 
9,293 posts, read 8,123,855 times
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The income numbers are ex-taxes. Their share of income is much larger than the 20 percent, especially if you expand it further to cover capital income that's not recognized.
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Old 06-16-2020, 10:21 PM
Status: "The following is only my opinion." (set 21 days ago)
 
Location: NY
7,780 posts, read 2,081,586 times
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Quote:
Originally Posted by fishbrains View Post
Take three people.

One earns $25,000/year, has no degree or job specific skills. By the time he retires, his net worth will be $5,000

The second person earns $80,000 a year. By the time she retires, her net worth will be $1.5 million.

Most of this is inherited or increased value of capital assets that have not yet been taxed.

That is how the top 1% can earn relatively little, but own a lot. Obviously I have made the details up, and there are many more variations possible.
Excerpt: Most of this is inherited or increased value of capital assets that have not yet been taxed

Response: You have basically described the passing down of money across generations.
The longer the seeds of your family continues the greater the chance of acquiring wealth. It is only to most
immigrant arrivals that land at the bottom of the ladder rungs that the greatest sacrifices are dished out in an attempt
to provide a better future for the generations that follow...We all know the stories of our moms scrubbing floors to send the kids to college or dads working two jobs.....
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Old 06-16-2020, 10:41 PM
 
9,623 posts, read 10,243,390 times
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Derivative of one of my businesses I've had a Wealth-X account for most of the last 10 years. Lots of data on this topic is covered by Wealth X or is otherwise out there.

Not quite 70% of the very rich (ultra-high net worth = $30MM+) are self made.

Further, most run of the mill wealthy people inherited between none and a small faction of their net worth.
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Old 06-17-2020, 07:35 AM
 
9,357 posts, read 5,678,485 times
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a lot of super weathly get paid in stocks but its not taxable till its cash out, so basically they working for free. The dividends are tax at a lower rate
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Old 06-17-2020, 10:09 AM
 
5,999 posts, read 1,771,477 times
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Quote:
Originally Posted by brownbagg View Post
a lot of super weathly get paid in stocks but its not taxable till its cash out, so basically they working for free. The dividends are tax at a lower rate
What law school did you attend to become a tax attorney?
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Old 06-17-2020, 10:37 AM
 
2,047 posts, read 527,843 times
Reputation: 3240
Nominated for most pointless continuing thread of 2020 (outside of the cesspools).
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Old 06-17-2020, 12:00 PM
 
Location: Raleigh
9,696 posts, read 7,304,206 times
Reputation: 13673
Quote:
Originally Posted by EDS_ View Post
Derivative of one of my businesses I've had a Wealth-X account for most of the last 10 years. Lots of data on this topic is covered by Wealth X or is otherwise out there.

Not quite 70% of the very rich (ultra-high net worth = $30MM+) are self made.

Further, most run of the mill wealthy people inherited between none and a small faction of their net worth.
That's interesting.

I think your comment about "run of the mill" wealthy people is spot on an it misses the "facts of life" that are realities for almost everyone. Take someone of the WW2 generation that had a successful career, became "run of the mill wealthy," as you put it. It wouldn't be uncommon to move some of those investments into more conservative funds so as not to disrupt the apple cart in retirement. If he and his wife live to 90, and one of them requires some time in a nursing home or assisted living, that takes a small toll by the end. Split that nice nest egg five ways (Boomer Kids) then you have a nice check to each child, but not enough for them to skate into the sunset.
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