2 ms·

Once your Return is greater than your Income - you're in a different class of people. This is true for everyone retired. It's true for a lot of people >55. And

Once your Return is greater than your Income - you're in a different class of people. This is true for everyone retired. It's true for a lot of people >55. And it's true for almost everyone in the top 1% by wealth (by definition you have >$10.5M - which even with average returns would net you $787,500 in capital gains per year - which is greater than the cut off for the top 1% in earned income). Outside of that dynamic, I don't think there's as big of a difference between the top 20%, 10%, and 5%. It's all relative to wealth - and the curve doesn't get ridiculously steep until you get into the >2% (of wealth).

jollybean 5y ago
A 'top 20%' earner can put money in equities and gain some leverage but that's it. A top 5% can have access to some special opportunities, be an insider at a company or have stock options. A top 0.5% will be CEOs, Bankers, and connected individuals (through family/school networks). Top 0.1% gets access to giant deals via government, international industrial or political relationships, access to major financing (i.e. SPACs). As you can see in the charts from the article the 'jump' from each of the tranches is oddly about the same.
adverbly 5y ago
Investment income relative to wealth is the best classifier for wealth class. When one person's net annual income is another's net wealth, they're in different classes. This puts most people in the .middle class with about 100k income through work or investment. That bracket ends at about 2m net worth as they make about 100k off their investments. Then you hit 40m where the 40m net worth person is making 2m a year. Then 800m at 40m per year. Then 16bn at 800m per year. At the end of the day, everyone past tier 1 doesn't have to work, but there is a lot going on between each of those layers.

2 ms·

Once your Return is greater than your Income - you're in a different class of people. This is true for everyone retired. It's true for a lot of people >55. And

by onlyrealcuzzo 5y ago

jollybean 5y ago
A 'top 20%' earner can put money in equities and gain some leverage but that's it. A top 5% can have access to some special opportunities, be an insider at a company or have stock options. A top 0.5% will be CEOs, Bankers, and connected individuals (through family/school networks). Top 0.1% gets access to giant deals via government, international industrial or political relationships, access to major financing (i.e. SPACs). As you can see in the charts from the article the 'jump' from each of the tranches is oddly about the same.
adverbly 5y ago
Investment income relative to wealth is the best classifier for wealth class. When one person's net annual income is another's net wealth, they're in different classes. This puts most people in the .middle class with about 100k income through work or investment. That bracket ends at about 2m net worth as they make about 100k off their investments. Then you hit 40m where the 40m net worth person is making 2m a year. Then 800m at 40m per year. Then 16bn at 800m per year. At the end of the day, everyone past tier 1 doesn't have to work, but there is a lot going on between each of those layers.