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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
by 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 agoI 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 agoAs far as inheritance goes, nowadays inheritance will actually concentrate wealth as rich people tend to only have one kid.