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flyer
ParticipantAN, yes, my friends are well protected with insurance, but their net worth has suffered due to some investments and other financial moves they, unfortunately, happened to make at the wrong time. They are doing OK–just not at the level they would prefer to be.
Although we’re involved in real estate, and other investments–we’re quite conservative–and are making every effort to keep what we have, long-term.
As far as exploring the possible options available in closing the “wealth gap,” I’m very much enjoying reading the in-depth analysis both you and CAr are providing. This is a big issue, and one that I believe will effect more and more people as time goes on.
Just from the varying responses each of you have posted, it is clear that there will be no easy answers.
ParticipantAN, I, of course, truly don’t have the answer to the ultimate solution–wish I did.
That said, some of the friends I mentioned who were literally “at the top,” have now fallen into the “silent wealth gap,” and I increasingly hear stories like that everyday. The fact is, they could have done something about it before it got away from them, via more conservative planning, etc. (i.e. keep the million+ rather than spend it all.)
I think the real point I’m making is that, virtually anyone of us can fall into the “wealth gap” regardless of which quintile in which we may currently abide.
ParticipantI completely understand the points everyone has made, but, it seems it is still an issue to take note of from a societal viewpoint, since, at one end of the spectrum we are seeing more and more kids living at home longer than ever before–even after college–and, at the other end of the spectrum–fewer and fewer people being able to retire comfortably. IMO, both of these scenarios represent “wealth gap issues,” so it may be effecting more people than we even realize.
In addition, although, technically not defined as the “wealth gap,” but still illustrative of the point–I’ve known people who, in their 30’s and 40’s seemed to have their financial lives all figured out, then, when unexpected things happened at 50+ (job loss, illness, etc.)–generally because they weren’t prepared–their financial status changed immensely, creating a huge “gap” in their wealth.
Because this data doesn’t show up as a statistic, it might be called the “silent wealth gap,” and is happening more than we might care to imagine.ParticipantAgree with what you added, CAr.
I realize the “wealth gap issues” do not apply to most of us on this forum, but as the documented gap increases over future decades, I believe the negative effects will reach further and further into the populace.
ParticipantPersonally, I think the “wealth gap” statistics are pretty much self-explanatory–concerning the ever-widening “Gap Between the Middle Class and the Rich.”
Differing levels of wealth directly translate into many “quality of life” differences between classes (for lack of a better term)–such as–less disposable income, lesser funds for housing, lesser funds for retirement, lesser funds for heirs (if you so choose).
I’m sure there are more examples, but those are the most significant, life-changing issues in my opinion, and, most likely, why it is referred to as the “wealth gap.”
ParticipantThis will be interesting, as we lived in CV for about 10 years, and still have rentals there. I’d really like to hear what others think as well.
ParticipantSome interesting facts and figures.
Wealth Gap Between Middle Class and Rich Widest Ever:
“Not only are the middle class suffering from stagnant incomes, their wealth hasn’t grown at all either.
That’s led to the widest wealth gap on record between the middle class and the rich.
The median household net worth of middle-income Americans remained at $96,500 between 2010 and 2013, according to a new report from the Pew Research Center, which looked at Federal Reserve Bank data.
Upper-income households, however, saw their wealth grow to $639,400 last year, up from $595,300.
That means the rich have 6.6 times more wealth than the middle class, a figure that’s grown from 4.1 in 1998 and 3.4 in 1983.
It’s also a record 69 times the wealth of lower-income Americans, who had accumulated only $9,300 as of last year.
Part of the reason for the gap stems from how the rich and the middle class build wealth. The former are more likely to invest in the stock market, which has been on a tear in recent years. The latter have more of their net worth tied up in the housing market, which hasn’t recovered as much.
That’s also why the Great Recession had a bigger impact on the net worth of the middle class. Back in 2007, before the housing crash, the middle class saw its median wealth soar to $158,400.
The rich also haven’t recovered fully from the downturn, but they are a lot closer to their 2007 peak of $718,000.
Looking longer term, the rich have more than doubled the size of their nest eggs over the past three decades, while the middle class have inched up 2.3%.
Pew defines middle income as family of four with a household income between $44,000 and $132,000.
Some 46% of American household fall into middle income under its methodology, which adjusts for family size. Upper-income Americans are those who earn more than $132,000 for a family of four.”
CNNMoney (New York) January 30, 2015: 4:06 PM ET
ParticipantMy benchmark for rational comparison concerning financial matters (generational or otherwise) is always net worth. What people “appear to have” or are able to “buy” can be very misleading. The net worth figure is far more revealing.
Participant[quote=scaredyclassic]Here’s some legal advice.
If you have to go to trial and choose between 2 lawyers. One who’s real good with the law, data or scientific evidence….and another one who seems a little dumber but who is a riveting storyteller…
Take the latter.[/quote]
Agree.
Regardless of IQ, (including most of us who have joined Mensa) the most successful people I know–those who are really living the lives they want to live–(my definition of success)–have extraordinary emotional capacities–in balance with their analytical.
I realize scientific evidence trumps emotion concerning most, if not all medical issues, but, I’d have to say the most successful decisions and deals I’ve ever made in life came more from an emotional than analytical basis.
ParticipantMy wife, ever the “Mom,” among a myriad of other things she embodies, shared this article on one mother’s perspective on autism with me. It’s quite touching, so I’m passing it along.
http://www.huffingtonpost.com/carrie-cariello/i-know-what-causes-autism_b_6503398.html
ParticipantI’ve always been a DIY’R–cars, homes, etc., etc.–and my wife will attest to the fact that I probably have more “parts” around than are humanly necessary. RS and HD have always been favorites, so I’m sorry to see RS go.
This came in handy way back when we first started buying investment properties, and, even today, I still enjoy taking care of things myself whenever possible.
I’m guessing that many of the companies we see at the forefront today in other industries will also become obsolete. That’s just the way life is. Hot today–gone tomorrow.
Participant[quote=flu][quote=The-Shoveler]Also saw another report saying they cannot find workers for construction or Transport Job’s
Boomer are retiring and the millennials don’t seem to be interested in Blue collar work.[/quote]
In maybe 10 years, they won’t be able to fine software/hard engineers because the fear of outsourcing would have eliminated interest in that line of work.. But, hopefully by then I will be either retired or (to more of a bummer)…dead…[/quote]
It’s so true that many people find themselves out of jobs in their 50’s, which is exactly why I’ve always believed retirement goals should be reached by then–“just in case”–whether one ends up retiring or not.
Participant“Retirees face up to the “Million-Dollar Illusion”
Participantflu, I know you and many other “Piggs” are doing just fine in that regard.
My point was that, per this general discussion concerning savings, investments, which generation has the edge, who made more when, etc., etc.–even after all of these efforts–those who have a net worth of a million or more still stands at around 5%–which just seems disturbingly low to me for the population at large.
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