“The Great Gatsby” author F. Scott Fitzgerald opened his story “The Rich Boy” with “Let me tell you about the very rich. They are different from you and me.” One way they are “different from you and me” is in the makeup of their net worth. For middle income earners, the principal residence is the cornerstone of net worth with housing and pensions making up nearly 80% of their total wealth, while stocks and mutual funds make up only 4% of their wealth. In the “Ultra Rich” category, though, those proportions are topsy-turvy. For those lucky folks, the principal residence makes up just 7.6% of their assets while stocks, business equity and other real estate holdings add up to almost 80% of assets. (Chart from visualcapitalist.com)
"The Rich Boy"
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August 19, 2019