Median net worth excluding home = $15,000

[Liberal_in_LA]

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

[LAGC]

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.

[upaloopa]

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.

[Orangepeel]

7. Most likely

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

[Tierra_y_Libertad]

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.

[LiberalLoner]

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

[closeupready]

4. That's appalling. Sad that

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

[Cary]

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%.

[Spike89]

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?

[Liberal_in_LA]

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.

[SoCalDem]

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..

[Spike89]

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.

[sarcasmo]

9. USA! USA! USA!

[HopeHoops]

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

[4th law of robotics]

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.

[taught_me_patience]

13. Really sad

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

[LiberalLoner]

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

[coalition_unwilling]

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.

[Cary]

17. And where does this end?

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

[LiberalLoner]

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

[OneTenthofOnePercent]

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

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

[xchrom]

22. Du rec. Nt