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Top 1% Now Control 39% of the World's Wealth
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Ancillary Reason?
Possible additional reason wealth is moving up
Apparently, while stocks and economic growth are fueling the wealth growth of the rich (BJL's article), higher prices and depressed housing prices are driving the wealth of the middle class lower (the link above).
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Originally posted by Wino View PostPossible additional reason wealth is moving up
Apparently, while stocks and economic growth are fueling the wealth growth of the rich (BJL's article), higher prices and depressed housing prices are driving the wealth of the middle class lower (the link above).
In all seriousness, when did home equity become the primary definer of wealth in the USA? People have to live somewhere, so how and when exactly does that home equity get converted into usable cash? And where do people live after they do so? Since the article references middle and lower-income households, I would presume these households are not primarily located in the priciest areas in the US, where cashing out and moving to a less expensive area at retirement might be realistic or feasible.
We do not personally consider the equity in our home to be part of our wealth calculations. While we understand we could tap it if necessary, it would only be under less than ideal circumstances, and thus it's not part of our long term retirement strategy.Last edited by EarlyRetirementJoy; 06-03-2013, 08:30 AM.
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Originally posted by EarlyRetirementJoy View PostIn all seriousness, when did home equity become the primary definer of wealth in the USA? People have to live somewhere, so how and when exactly does that home equity get converted into usable cash?
>>snip<<
We do not personally consider the equity in our home to be part of our wealth calculations.
I plan to use house one for rental property at that point. House one is worth about the same as house two, but I purchased it for less than half the price. I can count house one as part of my wealth.
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This is not good for different reasons, including the fact that historically societies with the greatest division of wealth have had the most social problems etc.
On the other hand, I am very skeptical of government intervention in the economy.
Wish I had ideas....
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