Rising share of US wealth held by Americans over 70

Have you seen various Senior discounts at restaurants, theaters, ski resorts, and retailers? These discounts date back to the post WWII era when persons over 65 tended to have low to moderate incomes. This was before Medicare and as Social Security was just beginning to provide benefits for retirees.

 Despite poverty among a small segment of the senior population today, the vast majority of 65+ Americans are wealthy by world and American standards,

Americans ages 70 and older made up 11% of the US population last quarter (2023) but held a record 30% of the country's wealth, according to data from the Federal Reserve. Increases in stocks and home values during the pandemic help to explain the increasing concentration of wealth for members of this demographic.

Across the nation, it is retirees who are fueling the housing markets as they sell paid off homes that appreciated during their long tenure to trade up to more luxurious homes. Sure, some seniors are down-sizing but with developers and builders profiting most from building larger, higher-end homes, many seniors are buying larger homes than where they raised their families.Very few "starter" homes are being built because they are like compact vehicles are to car companies... not profitable. 

The economics of families have shifted over the decades so that people raising children should be getting the discounts, not seniors.

Full Story: Bloomberg

 

Wealthiest Families & the stock market

The top 5% of US households own 71% of US equities, while the top 20% of US households own 93% of US equities (source: Survey of Consumer Finances, Federal Reserve Board). 

CEO median compensation reaches $13.7 million

 For heads of the 300 largest companies, CEO compensation surged to $13.7 million (up from $12.8 last year) in 2020 when the rest of the nation was suffering dramatic financial losses, according to The Wall Street Journal (4/12/21). Just one more example of the growing gulf between the top earners and the rest of us. 

for example, Norwegian Cruise Line's CEO Frank Del Rio doubled his pay to $36.4 million during the same year (2020) that the company lost $4 billion after cruises were cancelled and revenue's plummeted 80%. How does that make any sense?

Re you rich? Are you wealthy? How do you rank in terms of income and net worth?

Are You Rich? This Income-Rank Quiz Might Change How You See Yourself
https://www.nytimes.com/interactive/2019/08/01/upshot/are-you-rich.html?referringSource=articleShare

Are You Rich? Where Does Your Net Worth Rank in America?
https://www.nytimes.com/interactive/2019/08/12/upshot/are-you-rich-where-does-your-net-worth-rank-wealth.html?referringSource=articleShare 

Check out these interactive websites that show how your income and wealth compare to other Americans. 

How does my networth compare to other Americans?

Check out your status using the

Net Worth by Age Calculator for the United States

The Squared Away Blog explains: "An online tool tells you where you stand financially by stacking up your net worth against other Americans.
The calculator compares a family’s net worth – financial and other assets minus debts – with all other U.S. families. Homeowners can choose to include the value of their home equity in their total net worth – or not." Read more at:  https://squaredawayblog.bc.edu/squared-away/how-does-your-wealth-compare/

Check out how your wealth compares:
https://dqydj.com/net-worth-by-age-calculator-united-states/
Also find out:

What is the Average Net Worth By Age Group in America? (And Median Net Worth by Age)

Note the incredible differences between average wealth and median (mid-point) wealth (much higher than average due to the huge inequality gap in our country.

"You might be among the world’s richest people and not realize it"

"Compared with the rest of the world, a middle class American" is... wealthy. "To be among the wealthiest half of the world last year, an adult needed to own only $3,210 in net assets." To compare yourself to other Americans, "the median American family had $81,000 in net worth in 2013."
The majority (71%) of the global population -- collectively own only 3% of global wealth, according to Ana Swanson, writing in The Washington Post: https://www.washingtonpost.com/news/wonk/wp/2016/01/21/you-might-be-among-the-richest-people-in-the-world-and-not-realize-it/

Key Steps to Building Wealth

No, it’s not about taking more risk, buying the hottest new investment, spending lots of time on investment strategies, or working with an investing guru.  Researchers at Florida State University followed the behaviors of couples who earned similar incomes but built vastly different wealth. “The objective of this study was to identify differences in financial and investing practices of householders nearing retirement who differ markedly in terms of current household wealth but had similar opportunities to build household wealth during their lifetime.” They identified the following successful: “better communication between householders about the household’s finances; active garnering of financial information from employers and financial professionals; and attempts to forecast the wealth required for retirement and frequent monitoring of the household’s current financial status in relation to that goal. It is also likely to benefit from attempts to keep on the “right side” of interest; that is, to save and thus earn interest on those savings and to avoid debt and thus avoid paying interest and late fees on those debts.” http://www.finrafoundation.org/web/groups/foundation/@foundation/documents/foundation/p122355.pdf
Download the 2 page brochure "Are you Fiscally Fit? A resource to help you become and stay financially fit for life" at: http://www.finrafoundation.org/web/groups/foundation/@foundation/documents/foundation/p122356.pdf

7 Habits of Highly Successful Retirement Savers

Almost anyone can become wealthy using these investment strategies.

By Robert Berger. Details at: http://money.usnews.com/money/blogs/on-retirement/2014/07/17/7-habits-of-highly-successful-retirement-savers

1.      Start saving early.

2.      Avoid car loans

3.      Pay off debt slowly

4.      Save a sizeable down payment for a home

5.      Never stop learning.

6.      Focus on investing costs.

7.      Ignore market fluctuations.

5 Ways Better Health leads to a Wealthier Retirement

"Employers and employees are emphasizing both physical and financial health, writes Tim Minard, Principal Financial Group's senior vice president of distribution for Retirement and Investor Services and U.S. Insurance Solutions. Minard writes that healthier people spend less on medical bills, freeing up more for their retirement, and employers who put more money toward wellness benefits end up paying less for employees' health insurance. Minard explains five ways healthy lifestyles lead to better finances during retirement, such as avoiding the costs of chronic diseases and lower medical bills before and during retirement." See details at: http://www.benefitspro.com/2012/09/27/a-prescription-for-healthier-retirement-savings-th?ref=hp