How to Save Like the Rich and the Upper Middle Class (Hint: It’s Not With Your House)
• By Josh Zumbrun
The very rich often live in expensive houses, but that’s not where most of their wealth is.
In fact, for the wealthiest 1% of Americans, only about 9% of their total net worth is tied up in their home. That’s compared to 63% for the broad middle class.
That’s among the revealing findings of research, released earlier this month, from Edward Wolff, an economist at New York University who studies the wealth distribution. His work analyzed the Federal Reserve’s Survey of Consumer Finances to peek into the widely differing portfolios of the wealthiest 1%, the next 19%, which can be loosely thought of as the upper-middle class (though the top of this range is getting very wealthy as well), and the middle 60%, or the broad middle class.