Net Worth and Income of Top 1%, 5%, 10% and 20% in America 🇺🇸

Curious about the net worth and income of the wealthiest segments in America? In this video, we explore the mind-boggling wealth and income statistics for the top percentiles of Americans. Let's delve into the astonishing realities, disparities, and intriguing insights surrounding the top 20%, 10%, 5%, and 1%.

0:00 Intro
1:12 Wealth Disparities
2:30 Top 20%
2:58 Top 10%
3:29 Top 5%
3:56 Top 1%
5:15 Average Millionaire Income Streams

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📜 DISCLAIMERS & DISCLOSURES
This content is for education and entertainment only. Diane doesn't offer personal finance, wealth, or investment advice. The information is shared without regard to individual investor goals, risk tolerance, or financial situations and may not be suitable for everyone. Affiliate links may be included to support this channel. 💙

[hughtuller]

Im 57. Been maxing out my 401K and my IRA from the start when I could. Have 2 mil saved now with a salary of 150, 000 a year (started at 50k). Still have a few more years of work before I retire, so looking at 2.5 to 3 in savings. With social security, I’m sitting fine for my retirement. The system is there if you disciplined and save. Don’t need to be a tech guru or business owner. Look at what is available and put your money in rather than buying bubble gum and candy.

[teams]

I started contributing to my 401k my second paycheck out of college. It was tough with a mortgage, student loans, etc. I worked six days a week as an Engineer. In those days we got OT on everything over 40 hours. Then I met my partner (now 35 years together) he was into saving/investing as well. By the time we retired we were saving 35 percent of our income . He retired at 63 and I was 57. Saving/Investing on autopilot works.

[knightsoftheroad]

I’m 58 yrs old and never had a sky high salary but after 32 years maxing out 401k and Roth plus a long term holding in AAPL with 2 rental homes and no debt on our primary residence we have $3 million in wealth. It’s not rocket science just live below your means and stay in equities and it only grows!!

[edb]

Would like to see a similar video for those of us who are retired, yet have substantial wealth even though our annual income is less impressive than others might think.

[bobfeller]

Financial literacy should be taught in schools...I understand it's starting in some places. My own awakening came with reading The Millionaire Next Door, and after which I read all that I could get my hands on from Graham & Dodd, Buffett, Munger, Lynch, Fisher, and Ramsey. The bottom 20% in the country should be taught the Asian mind set that education/hard work is the way out of poverty. Yes, multiple streams of income is the ticket.

[vernetify]

The more important factors are having low EXPENSES and NO DEBT . There are many people earning six figure sums, but are FLAT BROKE because of their living expenses and what they owe.

[dandandkl]

Don’t know where she obtains her statistics from but based on her criteria and commentary my wife and I were in the top 10% before we retired in 2020! Our combined yearly income was $210, 000, with annual bonuses of $12, 000. We were both in banking industry for a long time, with me going from lending to IT projects. However, I never completed college and she never went to college, which blows her statistics out. I know many like us so her comments are misleading. A lot depends on your age, where you live, etc. Before Covid we had net worth of over $2.5 million. The secret was to save at 6-10% of your earnings, don’t buy new cars and to have pension savings when we retired.

[adrianreid]

Thanks so much. I do take some comfort in the fact that the mortality rate for the top earners has held steady at 100 percent for a significant period of time. Eternity is quite a long time.

[anindividual]

Don't put too much stock into how much you make. Focus on reducing your spending and debts. Prioritize a broad range of investments into things like mutual funds. In the beginning, avoid single stocks. I don't make that much money, but my investments out earn me. I live beneath my means and am very strict with myself about not taking out debt and paying off my credit card in full every month. Little, simple, diligent steps can take you a long way.

[mekrobar]

I find it helps to be obsessed with money/wealth. I spend a great deal of the day learning about taxes and alternative ways to invest and then reinvest profits.

[wanderingdoc]

I was a lowly military doctor (so I earned 40% of a civilian M.D.) but a net worth of $2.6MM, so I early retired age 37. Although i've enjoyed traveling the world and having fun, I miss working so i will go back to part time work

[whatsupwithsteve]

"Rich" in monetary terms to me means being able to do and spend whatever you want and not worry about it. I ain't rich but I'm comfortable...:)

[blackhawkteslatech]

Great info. Deca-millionaire is a personal goal since II heard about term when I read "Millionaire Next door" in my 30s about 12 years ago. Wealthy but frugal and unassuming people with mostly who drove trucks and midsize sedans instead of German brands - this book shocked me as I was one of the folks who think wealth is the same as income and what "people see". Being in the top 1% is a possibility for high income folks making less than 500k/year as long as they leverage the power of compound interest.

[VoiceOfReason]

I have a net worth of the top 5% (not including home equity, just savings) but my income is only about 1/3 of that group. So I'm not sure what to make of these figures. I started investing when I got my first real job at age 28 (I'm almost 55 now). For most of my investing life, I put away 10-12% of my income (competing expenses like house, kids, etc.) but since I turned 50 I've been putting away 36% of my income and another $25K in after-tax income. Now that I've paid off my car, I plan to increase my savings rate to around 45%. My goal is to comfortably retire at age 60.

[EddieLoboNunez]

I’m top 5% but I will always live like in the 90% I guess some expending habits never change lol. Thanks mom!!! Made me extremely frugal

[boomerang]

Interesting. I'm glad you've descended from a culture that values education, achievement, hard work, meritocracy and strives to 'keep informed' during their voyage through life. I admire Asian-Americans, Jewish Americans and anyone else who admires and pursues these attributes.

[adstix]

Diane, everything in life is relative!
What is considered pocket change for some may be a fortune for another!
For example, an income of $26, 000 may be at the bottom of the totem pole in America while that same amount may shoot one into the top ten percentile in many parts of Latin America, Africa & Asia!
Little wonder why many retired Americans are relocating to the developing world where their dollar can stretch a bit farther!

[kbbyu]

While you focused on the income of the top 20%. And above as evidence of wealth disparity you need to also look at the total percentage of income taxes they pay

[legoboy]

I enjoyed this video - nice pace and content and I was always interested in what you were saying. You are a rare talent!

[phuong_TL]

This was a great video! Very informative!!