Household Net Worth

Hi New Haven, We meet again. chuckle, chuckle. It just so happens there was an article in yesterday's USA Today about the countries wealth disparity. The figures compare 2001, and not 2002. Here are some of the stats: "Median net worth for all families rose 10 pecent to $86,100 from 1998, but up 41 percent from 1992. Net worth for the lowest income group whose income was $10,300 in 2001, rose 25% to $7,900. Net worth of the top 10 percent of households whose median income was $169,600 rose 69 percent to $833,600. The median income for all families rose 10 percent to $39,900. Median income for whites rose 17 percent to $120,900, but fell 4.5 percent to $17,000 for minorities. The report also found that nearly 52 percent of families held stocks." The feds interviews 4,449 families in the second half of 2001 to produce this report. c.i.

According to these stats, I would say we're doing pretty good, because although our income is not nearly at the $169,600 range, our net worth is somewhat above $833.600. c.i.

I doubt that net income is closely correlated with net worth.
I could be wrong, but I doubt it, until I see the figures.

Are you allowing for inflationary increases in the value of homes, New Haven? In GAAP accounting, of course, assets are carried at cost, but I suspect that the figures you and c.i. are getting are based on some sort of market value consideration.

roger, I'm sure the net worth figures are reported at market prices instead of cost. c.i.

I'd like to see an itemized list of what is called "assets".

"Assets" for the purpose of determining Net Worth: Residence, autos, jewelry, art works, cash, annuities, bonds, stocks, gold, less all loans and/or mortgages owed. In our case, we do not count jewelry and art works although the value is pretty substantial. c.i.

Would you include SS benefits and your 401K?

Not ss benefits, but the 401K includes cash, annuities, bonds, and stocks. Sometimes, even gold. c.i.

If you're receiving SS benefits, it should count as cash. Right?

By SS benefits I mean the $$ you receive/month from SS.
This amount is added to you net income and as with the 401K constitutes one of your monetary assets.

Your 401K is drawn on during retirement and yet is still considered to be your asset.

New Haven, SS is an asset if you don't spend it. It's part of Cash. c.i.

That's right. You could deposit the SS check into your annuity account and let it grow ( hopefully ). b