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Poor? No. But wealth and income (from work) don't have anything in common. You may earn those 100k year after year, but it would still take quite a while until

Poor? No. But wealth and income (from work) don't have anything in common. You may earn those 100k year after year, but it would still take quite a while until you land into the wealthiest 10%, if ever.

tantalor 5y ago
The 90%ile of Household Net Worth in US is $1.2 million. Is that poor? https://dqydj.com/average-median-top-net-worth-percentiles/ https://dqydj.com/average-median-top-net-worth-percentiles/
kelsierFe 5y ago
From that same site, 90% net worth is ~1.25m. https://dqydj.com/net-worth-percentile-calculator-united-states/ https://dqydj.com/net-worth-percentile-calculator-united-sta... If you contribute 2k a month at 7% interest that would take you 23 years. A long time yes, but certainly achievable on a 100k salary. Of course I know the interest rate might not be that going forward, but the point still stands.
- nly 5y ago
  No, because in your scenario the people who have $1.25M in assets now are going to have $6M in 23 years (invested at the same rate), so these high earners still won't end up in the top 10%. This is, I'm sure, is what the parent means. Compared to people with capital, people on high incomes are always behind. If you earn more than average, spend less than your peers, and invest wisely then you might move up a bit on the wealth scale, but that's it.
  - medvezhenok 5y ago
    I think the idea is that some of the people that have $1.25M now are not going to be around in 23 years, and that money will have gone to [inheritance, eldercare, etc], so who makes up the top 10% will change simply because of demographics.
    - sudosysgen 5y ago
      As far as inheritance goes, nowadays inheritance will actually concentrate wealth as rich people tend to only have one kid.
- papreclip 5y ago
  harder to make 100k 23 years ago than it is today. by the time you finish a 2k/mo journey you begin today, 1.25M will be no longer be the cutoff for top 10%
whakim 5y ago
While I take your point that wealth is always more unequally distributed than income, income inequality and wealth inequality are definitely related. The degree to which they're related depends a lot on the tax and regulatory regime. In the United States, income inequality is high relative to most other Western countries, and the top 1% and top 0.1% shares particularly so; this means that if you're at the top of the income distribution you can become wealthy faster. In a country like France, where top marginal tax rates are higher, executive compensation is lower, and estate taxes are less progressive, inheritance and bequests play a (relatively!) more important role in the wealth distribution.

tantalor 5y ago

The 90%ile of Household Net Worth in US is $1.2 million. Is that poor? https://dqydj.com/average-median-top-net-worth-percentiles/ https://dqydj.com/average-median-top-net-worth-percentiles/

kelsierFe 5y ago

From that same site, 90% net worth is ~1.25m. https://dqydj.com/net-worth-percentile-calculator-united-states/ https://dqydj.com/net-worth-percentile-calculator-united-sta... If you contribute 2k a month at 7% interest that would take you 23 years. A long time yes, but certainly achievable on a 100k salary. Of course I know the interest rate might not be that going forward, but the point still stands.

nly 5y ago
No, because in your scenario the people who have $1.25M in assets now are going to have $6M in 23 years (invested at the same rate), so these high earners still won't end up in the top 10%. This is, I'm sure, is what the parent means. Compared to people with capital, people on high incomes are always behind. If you earn more than average, spend less than your peers, and invest wisely then you might move up a bit on the wealth scale, but that's it.
- medvezhenok 5y ago
  I think the idea is that some of the people that have $1.25M now are not going to be around in 23 years, and that money will have gone to [inheritance, eldercare, etc], so who makes up the top 10% will change simply because of demographics.
  - sudosysgen 5y ago
    As far as inheritance goes, nowadays inheritance will actually concentrate wealth as rich people tend to only have one kid.
papreclip 5y ago
harder to make 100k 23 years ago than it is today. by the time you finish a 2k/mo journey you begin today, 1.25M will be no longer be the cutoff for top 10%

whakim 5y ago

While I take your point that wealth is always more unequally distributed than income, income inequality and wealth inequality are definitely related. The degree to which they're related depends a lot on the tax and regulatory regime. In the United States, income inequality is high relative to most other Western countries, and the top 1% and top 0.1% shares particularly so; this means that if you're at the top of the income distribution you can become wealthy faster. In a country like France, where top marginal tax rates are higher, executive compensation is lower, and estate taxes are less progressive, inheritance and bequests play a (relatively!) more important role in the wealth distribution.