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Seven years of wealth gains gone
After years of strong growth, typical nest egg now smaller than in 2001 2/12/09
http://www.marketwatch.com/news/stor...E8D02684A80%7D
A bit of interesting data from triennial Fed survey.
After years of strong growth, typical nest egg now smaller than in 2001 2/12/09
http://www.marketwatch.com/news/stor...E8D02684A80%7D
A bit of interesting data from triennial Fed survey.
WASHINGTON (MarketWatch) - The nest egg of the typical American family is smaller now than it was seven years ago, according to Federal Reserve data released Thursday.
The inflation-adjusted net worth of the typical family increased 17.7% to $120,300 from 2004 through 2007, the Fed said Thursday in its Survey of Consumer Finances, the most detailed look at family finances available. Net worth is defined as assets minus liabilities.
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The typical family owed $67,300 in debts in 2007, up from $60,700 in 2004. The big increase came from debt on second homes. The typical family that had a mortgage owed $107,000 on their primary residence. Those with credit card balances owed $3,000. The median installment debt, chiefly auto loans, was $13,000.
A rising percentage of households were excessively indebted. In 2007, 14.7% of households were paying more than 40% of their income on debt service (including rent) up from 12.2% in 2004. More than a quarter of the poorest households were paying more than 40% of their incomes. The biggest increases in debt-service levels, however, occurred among those making more than median income, especially those at the very top.
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The typical family owed $67,300 in debts in 2007, up from $60,700 in 2004. The big increase came from debt on second homes. The typical family that had a mortgage owed $107,000 on their primary residence. Those with credit card balances owed $3,000. The median installment debt, chiefly auto loans, was $13,000.
A rising percentage of households were excessively indebted. In 2007, 14.7% of households were paying more than 40% of their income on debt service (including rent) up from 12.2% in 2004. More than a quarter of the poorest households were paying more than 40% of their incomes. The biggest increases in debt-service levels, however, occurred among those making more than median income, especially those at the very top.
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