I wonder how much of the net worth figures, excluding those at the top who are heavily skewing the average numbers, are tied up in home equity?
The Median price for a 3 bedroom house in the US is about $400K, which is very closely aligned with the median net worth of Americans in their 60’s. That is pretty bad news. Also note the disparity of average and median. The middle class is disappearing.
Of course, net worth can be hidden. For instance, 1 couple where husband and wife each have $1M in their 401K and own a $1M in their home and other assets might seem like they are wealthy with a $3M net worth. But another couple, a retired cop with a $95K pension and retired teacher with a $70K pension living in the same neighborhood would have much more available income, regardless of having a much lower “net worth” on paper.
“home equity” — such an obvious question, isn’t it?
They really need to present the numbers with and without primary home equity.