The Composition of Wealth Across Different Income Brackets

This chart illustrates the varying composition of wealth across different income brackets in the United States, highlighting significant differences in asset distribution. For middle-income households, the principal residence constitutes the majority of their wealth at 61.9%, with pension accounts and liquid assets making up smaller portions. In contrast, upper-income households have a more diversified asset base, with a notable 24.5% in business equity and other real estate, and 18.6% in stocks and securities. The ultra-rich, however, have a strikingly different wealth composition, with nearly half (49.0%) of their assets in business equity and other real estate, and 31.4% in stocks and securities. This indicates a shift from tangible assets like a principal residence to more liquid and investment-oriented assets as wealth increases. The data underscores the importance of business equity and financial assets in the wealth portfolios of the ultra-rich, contrasting sharply with the asset composition of middle-income households. This trend suggests that as individuals ascend the economic ladder, their wealth becomes increasingly tied to investments and business interests, rather than personal property.

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