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Tue Jun 19, 2012, 04:08 PM

Median net worth excluding home = $15,000

what do you think about that? Does it surprise you? Did you think it was higher or lower?



http://money.cnn.com/2012/06/19/news/economy/net-worth-housing/index.htm

22 replies, 2670 views

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Arrow 22 replies Author Time Post
Reply Median net worth excluding home = $15,000 (Original post)
Liberal_in_LA Jun 2012 OP
LAGC Jun 2012 #1
upaloopa Jun 2012 #5
Orangepeel Jun 2012 #7
Tierra_y_Libertad Jun 2012 #2
LiberalLoner Jun 2012 #3
closeupready Jun 2012 #4
Cary Jun 2012 #6
Spike89 Jun 2012 #8
Liberal_in_LA Jun 2012 #11
freshwest Jun 2012 #16
SoCalDem Jun 2012 #19
Spike89 Jun 2012 #20
sarcasmo Jun 2012 #9
HopeHoops Jun 2012 #10
4th law of robotics Jun 2012 #12
taught_me_patience Jun 2012 #13
LiberalLoner Jun 2012 #14
coalition_unwilling Jun 2012 #15
Cary Jun 2012 #17
LiberalLoner Jun 2012 #18
OneTenthofOnePercent Jun 2012 #21
xchrom Jun 2012 #22

Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 04:10 PM

1. I wonder, does that figure take credit card debt into account?

Because supposedly the average household has something like $8K in debt, which would drag those numbers down even further.

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Response to LAGC (Reply #1)

Tue Jun 19, 2012, 04:20 PM

5. The meaning of net worth is assets minus liabilities.

Assets could be homes, cash, investments, other property. Liabilities could be mortgages, loans, credit card debt any other debt.

The total of all assets less the total of all liabilities equals net worth.

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Response to LAGC (Reply #1)

Tue Jun 19, 2012, 04:27 PM

7. Most likely

Net worth should be the value of all assets minus all debts, including credit card debt

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 04:11 PM

2. Hell, in America, if they advertised dollar bills "On Sale!" for $1.25 they'd have buyers.

Americans' idea of "Saving" is buying stuff they don't need because the price has been lowered to sucker them.

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 04:14 PM

3. I'm thinking the average American will have to work until they die.

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 04:19 PM

4. That's appalling. Sad that

in the wealthiest country in the world, median net worth is so low.

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 04:21 PM

6. You're getting into Dunning-Kruger Effect territory

I once heard a statistic that 40% of us or so believe we're in the top 10%.

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 04:29 PM

8. I'd have guessed a bit higher

But I'm not real sure what the figure "net worth" means in this case. For instance, there are 4 vehicles at my house, 3 are "owned" by me, but the 4th is new and technically underwater. I owe $18K on vehicles, but could sell the entire group tomorrow (an RV, motorcycle, pickup, sedan) for at least $24K (probably a bit more if I had a couple weeks to sell 'em). So, would the data show me with a net worth of negative $18K or a positive worth of $6K.
Like many Americans, I have a lot of "junk" and some semi-junk. I have a 0% loan on about $4000 worth the furniture that is about 1/2 paid for...again, I might not be underwater in the furniture at all.
Likewise, I have a 401K, but if I actually tried to liquidate it, I'd pay about 50% penalty. Is my net worth what is "in" the account, or what the account is actually "worth"?

I am fortunate to have some stuff, but also have significant debt. I have some savings, but little that is truly liquid. What does net worth mean?

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Response to Spike89 (Reply #8)

Tue Jun 19, 2012, 04:55 PM

11. that's an interesting take. I don't consider my 'stuff' in my networth at all. I consider most of

as almost worthless as soon as it leaves the store. cars excluded.

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Response to Liberal_in_LA (Reply #11)


Response to Spike89 (Reply #8)

Tue Jun 19, 2012, 07:29 PM

19. "stuff" is only worth what someone else will pay for it

and "liquidity" of stuff is not always fast or easy.

This one thing is the bitterest pill for too many younger folks starting out. They exchange security & money in the bank for "stuff" bought on credit, and then when an emergency comes along, they go further into debt..The cycle of debt crushes many dreams..

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Response to SoCalDem (Reply #19)

Wed Jun 20, 2012, 12:26 PM

20. Without a doubt

You are right, and that is why I mentioned junk, semi-junk, and noted the various liquidity issues. Obviously a big plasma display loses most of its value the day you bring it home, but high-quality furniture maybe less, fine art may even appreciate. The point isn't so much "what can I get if I had a garage sale" but how is "net worth" assessed. My household is basically set up for the next few years, I don't need to buy furniture, appliances, or even vehicles. In a very real sense, the worth of "stuff" outside of an emergency auction scenario is the replacement cost.

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 04:32 PM

9. USA! USA! USA!

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 04:48 PM

10. Throw in the lawnmower and you've got another $200 to work with.

 

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 05:00 PM

12. I'd be interested to see a study that looks at this but takes in to account debt

 

as well as looking at the same stats in other countries.

That looks bad but I have no basis for comparison.

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 05:15 PM

13. Really sad

With an aging demographic, net worth should be much higher than 15k.

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Response to taught_me_patience (Reply #13)

Tue Jun 19, 2012, 05:18 PM

14. Yup and healthcare is going away too.

We will work until we die, and die without access to healthcare.

But we're #1 in the world, USA, USA, USA!!!!!!1

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Response to Liberal_in_LA (Original post)

Tue Jun 19, 2012, 05:21 PM

15. What's stunning about these numbers is the decline in

 

absolute terms in only 5 years, at least to me.

Median net worth has declined by 25-30% in the space of a mere 5 years.

Amazing and distressing.

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Response to coalition_unwilling (Reply #15)

Tue Jun 19, 2012, 06:08 PM

17. And where does this end?

I keep picturing Ted Kennedy with his "How much is enough" speech. How much is enough?

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Response to Cary (Reply #17)

Tue Jun 19, 2012, 07:19 PM

18. it is only enough when most of us are dead

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Response to Liberal_in_LA (Original post)

Wed Jun 20, 2012, 12:28 PM

21. That reminds me... I need to increase the insurance coverage on all my guns.

 

Especially the machineguns and silencers... those things are pricey.

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Response to Liberal_in_LA (Original post)

Wed Jun 20, 2012, 12:52 PM

22. Du rec. Nt

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