Comments on: Chart of the day: Median net worth, 1962-2010 http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: JakeCarson http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-48484 Wed, 30 Oct 2013 12:41:45 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-48484 It just doesn’t get any

better than seeing the gorgeous “Mrs. Anita Pelaez” over at her and her

husband “Captain Kutchie’s” place..Some Folks Also Call Him..”The

KutchMan!”….(Anita and Kutchie’s Key West, Key Lime Pie Factory and

Grill)…Just watching the lovely couple baking together all those Yummy

Key Lime Pies at their Key Lime Pie Factory and Grill in Asheville.

…It’s always worth the trip to visit them in they’re Historic Key Lime

Pie Factory and Grill…It should be on everyone’s bucket list for

sure..And The World’s Best Key Lime Pies!..YUM-YUM-YUM…..”Talk About

World Class” What An Understatement!…….AAHHHHH!….The Magic Of The

Lovely..”Mrs. Anita Pelaez” And Her Delicious Key Lime Pies Baked With

Pure Love…Always……40 Years And They’re Still Going Strong….

….May GOD Continue Blessing “Anita And Kutchie Pelaez” and They’re World

Famous Key Lime Pie Factory And Grill Where The Personalities, Ovens And

Smiles Are Always Warm And Inviting. “Kutcharitaville” We Love You!…..

…Now You Know Who Is The Hottest!…And Baby Let Me Tell You, Mrs. Anita Is No Act…She’s The Real Thing Baby!…

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By: JakeCarson http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-48483 Wed, 30 Oct 2013 12:40:49 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-48483 It just doesn’t get any

better than seeing the gorgeous “Mrs. Anita Pelaez” over at her and her

husband “Captain Kutchie’s” place..Some Folks Also Call Him..”The

KutchMan!”….(Anita and Kutchie’s Key West, Key Lime Pie Factory and

Grill)…Just watching the lovely couple baking together all those Yummy

Key Lime Pies at their Key Lime Pie Factory and Grill in Asheville.

…It’s always worth the trip to visit them in they’re Historic Key Lime

Pie Factory and Grill…It should be on everyone’s bucket list for

sure..And The World’s Best Key Lime Pies!..YUM-YUM-YUM…..”Talk About

World Class” What An Understatement!…….AAHHHHH!….The Magic Of The

Lovely..”Mrs. Anita Pelaez” And Her Delicious Key Lime Pies Baked With

Pure Love…Always……40 Years And They’re Still Going Strong….

….May GOD Continue Blessing “Anita And Kutchie Pelaez” and They’re World

Famous Key Lime Pie Factory And Grill Where The Personalities, Ovens And

Smiles Are Always Warm And Inviting. “Kutcharitaville” We Love You!…..

…Now You Know Who Is The Hottest!…And Baby Let Me Tell You, Mrs. Anita Is No Act…She’s The Real Thing Baby!…

]]>
By: JosephAMungai http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-40133 Thu, 14 Jun 2012 12:33:58 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-40133 OBAMA SELLS BANK BAILOUT TO DEMOCRATS: http://www.youtube.com/watch?v=ipLUYRdDD T8&feature=relmfu

OBAMA VOTES FOR HIS FINANCIERS BEFORE ELECTION: http://www.politico.com/news/stories/100 8/14196.html

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By: Eericsonjr http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-40078 Wed, 13 Jun 2012 15:46:44 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-40078 Home value = Net Worth, eh?

And yet, and yet: 20 years ago all those nice young boys and girls with designer glasses came to our offices and told us about this great deal called the “401k.” If only we all put 10 percent of our pretax earnings in that, why, we’d be millionaires by the time we were ready to retire, and, and everything!

And 10 years before that–30 years ago, right after a period of hyper-inflation and in the trough of a double-dip recession–when the median family had the same (or higher) inflation-adjusted net worth as we lucky 401k hoarders have today?

Back then, lots of them just had cranky old defined benefit pension plans. Boo!

Those didn’t count toward their net worth at all.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-40075 Wed, 13 Jun 2012 15:20:53 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-40075 Excellent observation, majkmushrm, and very well put.

For the last decade, in our household net worth calculation, we’ve been including our mortgage but NOT including the value of the home itself. The one is a financial obligation, the other is an illiquid asset.

Nothing wrong with having a negative net worth by that measure, at least when you are young. At least you know where you stand.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-40073 Wed, 13 Jun 2012 15:12:55 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-40073 Good points, Pablo, but the boomers are only just beginning retirement (except for those who were forced into it early by job loss in the recession). Their net worth is at their lifetime maximum.

Pensions have been on the decline for decades. I don’t believe that rising pensions would balance the above changes. If anything, the shift exacerbates the downward trend.

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By: majkmushrm http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-40072 Wed, 13 Jun 2012 15:12:17 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-40072 I think how you ended your piece is the most important observation. Adam Smith (no, not THAT Adam Smith) in his book “Paper Money” from the late ’70s when we were having serious financial problems resulting from the huge hike in the price of oil, observed that your home is not an asset – it’s where you live. From my perspective it’s like the assumption of an on-going business made by an auditor, you’re staying together as a family and so you’re not going to liquidate your home. So how much equity you have in your home is meaningless – it’s not going to earn you anything (yes, you can borrow against it but borrowing is not earning). So if you don’t have squat after you strip out the equity in your home, you’re a poor person with a place to live which is better than being a poor person without a place to live but a far cry from being “rich”.

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By: Pablo_III http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-40071 Wed, 13 Jun 2012 13:28:22 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-40071 Important piece of the analysis is missing, and that is…demographics.

For example, if a population is aging, net worth declines because people are selling their financial assets to fund their retirement. If the population is shifting to younger people, then net worth is also low because they are not in the “wealth accumulation” stage of their life. If the 30-60 yr age population is increasing, net worth should also increase.

These are just some examples and I really don’t know if the conclusions – that US households are not getting richer – would change, but it is still an important piece of the analysis that is ignored.

Also, net worth doesn’t include pension credit. As people work, they accumulate pension benefits that adds to their retirement income stream, so just because net worth is flat doesn’t necessarily mean that people are no better off than they used to be in terms of their overall living standard.

Other posters have made some good comments as well. Actually, I find the reteurs comment contributors an order of magnitude more intelligent than those on other news websites.

Thanks for the discussion,

“Pablo” from Canada.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-40070 Wed, 13 Jun 2012 13:20:20 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-40070 LadyG, I believe the situation is more nuanced than that.

In the first half of the decade, incomes were okay (though most of the gains flowed to the top 10%) but asset prices were strong. Those people in the middle whose incomes WEREN’T rising borrowed heavily against their home equity to support their rising expenses. In the second half of the decade, both incomes and asset prices fell sharply.

Factor out the asset bubbles and you would see a steady slide from the 90s to the present. (Especially if the official inflation rate reflected the reality for middle class families.) The early half of the decade wasn’t an example of a healthy economy — it was a badly diseased economy obscured by a series of asset bubbles.

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By: LadyGodiva http://blogs.reuters.com/felix-salmon/2012/06/12/chart-of-the-day-median-net-worth-1962-2010/comment-page-1/#comment-40069 Wed, 13 Jun 2012 12:53:54 +0000 http://blogs.reuters.com/felix-salmon/?p=14958#comment-40069 It’s quite shocking how closely this chart tracks with our family’s experience (apart from not being alive in 1962).

I think those of you who want to separate assets like homes from income are wrong. Income and asset price are actually tied together. Our income rose rapidly throughout the late 90s and early to mid-2000s; so too did our net worth. And it was not just home values: investment portfolios and 401ks also soared.

Then in 08 the stuffing got knocked out of all three in short order: job loss, underwater mortgage/foreclosure, investment portfolio decimated. The house is gone. The income has come back about 60%. Investments about 70%.

Again, this is an average so you need to remember that some lost much more, others have actually gained nicely. Overall though the losses are steep and real, not “paper.”

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