Happy holidays from our office to yours! The WSJ has this interesting article about a recent study of how many wealthy, upper middle class, and middle class Americans respective portfolios are structure and the implications for their financial security and independence.
- The wealthiest 1% have less than 10% of their net worth invested in their home. Most of them hold large amounts of wealth in businesses (they’re often the owners, partners, or an entrepreneur) and real estate investments. Still more money is held in stock portfolios, mutual funds, or trusts (which could in turn hold assets in a variety of forms). Depending on the investment structure, some or most of these folks’ assets will be highly illiquid.
- The upper middle class have substantial assets in IRAs and retirement plans, which are good from a saving and tax perspective, but often highly illiquid.
- The middle class have most of their money in the family home, usually a mortgage (or two), some retirement savings, and more modest cash reserves or stock portfolios.
My law firm, Johnson Law KC LLC, is experienced counseling clients from all stages and walks of life on every aspect of estate planning. We can help you answer these questions with confidence and friendly expertise. If we can serve you or your family with your trust or estate planning questions, please call (913-707-9220) or email us (firstname.lastname@example.org) to schedule a free, convenient consultation.
(c) 2014, Stephen M. Johnson, Esq.