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Yes AFAIK the Fed data includes people's retirement plans. People's retirement plans issue them a statement; I don't see why we need to divvy up the estimated b

by smcin 2y ago

Yes AFAIK the Fed data includes people's retirement plans. People's retirement plans issue them a statement; I don't see why we need to divvy up the estimated beneficial ownership. (Defined Benefit pensions are pretty rare in the US; in March 2023, only 15% of private industry workers had access to a defined benefit pension plan, and only 11% participated in such plans; mostly govt and local workers. Hence, the Fed data averages are deceptive; ~85% of people have no DB, 15% or fewer. So if they graphed those two separate subpopulations, we'd see more representative numbers for people who spent most of their working lives working for govt + everyone else.) (Why would you expect US Fed data on US residents to have anything to do with Norway’s sovereign fund? There are comparatively few Norwegians in the US and even fewer retirees living in the US who spent most of their life working in Norway; approximate as zero.) Yes, obviously older people have more savings, things compound. Also their retirement plans may have historically had more generous provisions/matches. And they got to invest in previous boom cycles. And historically real-estate tended to go up not down, most of the time.

lotsofpulp 2y ago
> Why would you expect US Fed data on US residents to have anything to do with Norway’s sovereign fund? It is unclear if 93% of all stocks owned by Americans are owned by the richest 10% of Americans, or if 93% of all stocks traded in the US are owned by the richest 10% of Americans. The defined benefit plan beneficial ownership is actually more so all taxpayers (since most are government employees), since they are on the hook for the benefits of the equity investments don’t live up to the expected returns. This would impact everyone via higher taxes, although exactly who and how much is up to politics. I guess my point is the whole of society kind of has its eggs in the public equities basket.

by smcin 2y ago

lotsofpulp 2y ago

> Why would you expect US Fed data on US residents to have anything to do with Norway’s sovereign fund? It is unclear if 93% of all stocks owned by Americans are owned by the richest 10% of Americans, or if 93% of all stocks traded in the US are owned by the richest 10% of Americans. The defined benefit plan beneficial ownership is actually more so all taxpayers (since most are government employees), since they are on the hook for the benefits of the equity investments don’t live up to the expected returns. This would impact everyone via higher taxes, although exactly who and how much is up to politics. I guess my point is the whole of society kind of has its eggs in the public equities basket.