Terminalcoffee discussion

The median net worth of an American household today is $10,890.

Ohh dang. Not my house. >///<

Lobstergirl wrote: "The median net worth of an American household today is $10,890."

If that's true, that is very terrifying. Last year, 2012, the Fed reported that US Household net worth had dropped to under $80,000. If it is now in the $10-11k, "Houston, we have a problem"!

I'm very interested where that number for median income originates.

"...according to calculations by Edward N. Wolff, an economics professor at New York University. (He bases this estimate on 2010 Federal Reserve data, which he has updated for Sunday Business according to changes in relevant market indexes.)"

http://www.nytimes.com/2013/06/09/you...

Lobstergirl wrote: ""...according to calculations by Edward N. Wolff, an economics professor at New York University. (He bases this estimate on 2010 Federal Reserve data, which he has updated for Sunday Business accor..."

There's something wrong with the article. Either a typo or calculation error because the Federal Reserve numbers don't match with the New York Times article at all.

There has been a dramatic decrease in household net worth, in fact the past nearly two decades of 'growth' have bypassed the majority of Americans as if they didn't happen. The net worth of households when 'adjusted' according to the Federal Reserve numbers is around $77,000 dollars or so.

I'm wondering if the number in the article (which is rather poorly constructed) is the calculation of what the median household currently has available as retirement income. That would make a lot more sense. It is still a scary number as you can't really live on that amount of money as a retiree for very long at all.

Sorry I forgot to link the Federal Reserve report in my previous comments.

Here is the link to the report and this appears to be the real deal that NYT is trying to comment on and not fully understanding or at least not conveying well in their article:

http://www.federalreserve.gov/pubs/bu...

It is scary enough to just look at the graphs and see the decline in what our money and finances really look like from the top! To say nothing of what it looks like from our perspective of the numbers in our own wallets.

The real point of the NYtimes article is not the bogus net worth number, its that there is a bunch of retired and near retired people that are going to get hurt badly by bonds.

Please, please, PLEASE - If you have bond funds or age adjusted funds (I can't think of the right name for these right now) in your 401K or 403B or retirement portfolio, review them and trim your holding. Bonds funds are very high risk right now.
Since bond funds have been sold as a 'safe' investment, lots of people are not aware of their exposure.

i don't worry about any of this as i have a nest egg. it consists of a nest. and an egg

I don't worry about any of this because I had a little boy and he better take good care of his mama when I become decrepit and senile.

Well, he better!

right. my kids quit helping when they found out i invested my whole retirement savings on segway

^^^^^

This one.

:)

Anyone underwater in their home mortgage, with limited (or no) savings, will have a negative net worth. The dip in housing prices since 2009 could have severely lowered the median net worth.

Vegas Baby!

Just spent the weekend in Vegas. My son and I saw a Vegas show for just $25.

Okay, okay. It was the movie "Epic" in the Regal Cinema inside the Red Rock Casino.

Thirteen fucking dollars for a 3D matinee? Gee, I got a discount on my son's ticket. Kids were just $12.

We had a large soft drink, so I made sure those fuckers refilled it for me on my way out of the theater. Only drank a little, but for that much cash I wanted to get as much as possible. We didn't even turn in our 3D glasses for recycling (they probably re-shrinkwrap them and use them again).

Oh, I would have definitely kept the glasses.

Phil can use them if he ever goes to a Halloween party dressed as Elvis Costello, circa 1977.

You know, back when he was good.

Yes, but everyone knows you are suppose to go to Halloween parties as a musician from their bad years.

My bad.

Heh.

Just makes for a more realistic costume.

I'm sure I'm below the median, and I live well below my means. This post was in 2013. What's the median income these days, I wonder.