Net Worth 2001 - 2004
The Federal Reserve released its Survey of Consumer Finances which found that the net worth of those in the US increased between 2001 and 2004, but not nearly as much as from 1998 - 2001 when the last survey was conducted.
The survey found that even though wages decreased 6.2% during the 2001 - 2004 time period, net worth was able to increase 1.5%. The median net worth of all households (half of all households have a higher and half have a lower) was $93,100.
Although there was a 1.6% increase in the median income during the time period to $43,200, when inflation was factored in the median wage fell 6.2%. With the decrease in wages toward net worth, the overall net worth increase was mainly due to increased home ownership and housing prices.
Savings also didn't come out well with 56.1% of families saying that saved money the preceding year, a decline of 3.1%. While 40.8% say that they save regularly, 36.1% say they have nothing left over at the end of the year according to the survey. Another 16.1% say they spent about what they made while 7% say they spend more than they make.
The survey also took a look at assets and divided them into financial assets (stocks, bonds, etc.) and non-financial assets (homes, property, etc). Nearly 100% of people own some type of assets (97.9%) which was a 1.2% increase. The median value of the assets rose to $172,900. Financial assets, however, tumbled 22.8% to $23,000 while non financial assets rose 22.2% to $147,800.
The number of families that invest in stocks directly or indirectly through mutual funds fell below the 50% mark declining to 48.6%. While there was a single digit decrease (3.3%) in those investing in stock related assets, the value of the stock related holdings plunged to $24,300, a decrease of 33.8%.
Debt also increased with more than three-fourths of families (76.4%)carrying debt. This was a 1.3% increase. The median level of those with some type of debt (including mortgages, loans and credit cards) rose a whopping 33.9% to $55,300. this included a 27.3% increase in the median level of mortgage debt to $95,000.
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