The Wall Street Journal's Josh Zumbrun shares some interesting stats about asset mix of the top 1% vs. everyone else. Great insights for those wanting to know how its done, considering we live in a society of 'ownership.'
The top 1% are very different by asset mix:
The top 1% of Americans – who have a net worth of more than $7.8 million – hold nearly half their gross assets in unincorporated business equity and other real estate. They have an additional 27% of wealth in financial securities, such as corporate stock, mutual funds and personal trusts.
The top 1% are very different by financial profile too:
The upper middle class has a very different financial profile as well. The “next 19%” — those with more than $400,000 in assets, but less than $7.8 million – have less tied up in business equity and financial securities than the rich, and less tied up in housing than the middle class. But comparatively, they have more of their wealth – hundreds of thousands to millions of dollars – in their pension accounts (which includes accounts like IRAs, Keogh plans, 401ks, defined contribution pension plans).
Mr. Wolff’s data also shows the total share of assets held by different wealth classes. Here he uses the breakdown of the top 1%, the next 9% and the remaining 90%. The only assets that are majority owned by the middle class are primary residences. Pension accounts and life insurance also remain major middle-class assets.
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