Are you rich enough to be in the top 1%? Here’s both the income and net worth you need to rank among the richest

The phrase “one percent” gets thrown around a lot in conversations about wealth and inequality, whether in politics, protests, or everyday conversation. But what does it mean to be in the top 1%? Let’s break it down by income and net worth to get a clearer picture of who is part of this exclusive group.

Don’t miss:

What income puts you in the top 1%?

To be in the top 1% of US income earners, a household must bring in at least $591,550 per year. For a single person, the limit is $407,500. Remember, these numbers are averages and may vary depending on where you live. For example, earning that much in New York City might not stretch as far as in other parts of the country.

Top 1% after net worth

When it comes to net worth, the threshold is even higher. To be in the top 1% in the US, a household’s net worth must be at least $13.6 million. This measure includes everything you own – homes, investments, savings – minus debts.

Wealth tends to be much more unequally distributed than income. Many households have little or no net worth, while the upper echelon rests on massive wealth. That’s why net worth often gives a clearer picture of someone’s financial status than just income.

Trending: Beating the Market Through Ethical Real Estate Investing” — this platform aims to give renters equity in the homes they live in, while earning an average annual return of 17.17% for investors – here’s how to join for just $100

Income vs. Net Worth: What Tells the Real Story?

So which is more important, income or net worth? It depends on what you are trying to measure. Income is great for understanding how much someone makes in a year, but net worth is the best measure of long-term financial stability and overall wealth. Someone with a high income might not have a high net worth if they spend a lot or have significant debt, while someone with a lower income but solid investments might be much wealthier.

How many people are in the 1%?

From the most recent numbers, there are about 1.3 million households and about 1.8 million self-employed workers who fall into the top 1% in the US. This is a small part of the population, but it represents a significant share of the country’s wealth and income.

Trends: Commercial real estate has historically outperformed the stock market and this platform allows individuals to invest in commercial real estate with as little as $5,000, offering a target return of 12% with a bonus 1% return boost today!

Variations from state to state

The income required to be in the top 1% varies significantly from state to state. For example:

The story continues

• Connecticut has the highest threshold at $952,902

• Massachusetts follows at $903,401

• California ranks third at $844,266

• On the lower end, Mississippi has a threshold of just $254,362

See also: IRS Finalizes 10-Year Rule on Retirement Withdrawals, Making Things ‘Crazy More Complicated’

Understanding who makes up this elite group isn’t just about how much you’re making now, it’s also about what you’ve built over time.

Maybe you’re not in the top 1%, or maybe you are – everyone’s situation is different. In any case, talking to a financial advisor can be very helpful. They can guide you on where you stand and how to make the best decisions for your financial future, whether you’re growing your wealth or looking to manage what you have.

Read on:

Next: Transform your trading with Benzinga Edge’s unique market trading insights and tools. Click now to access unique information that can put you ahead in today’s competitive market.

Get the latest stock analysis from Benzinga?

This article Are you rich enough to be in the Top 1%? Here’s both the income and net worth you need to rank among the richest, originally published on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.