Do you earn a decent salary, but live paycheck-to-paycheck? If so, you are part of a growing segment of the American population: the income rich-ish and asset poor.
We tend to associate empty bank balances with
those on the lowest rungs of the income ladder. But many of America’s
upper middle class have almost no emergency cushion and are woefully
unprepared for retirement. And years into the recovery, they are still
struggling, leaving the entire economy vulnerable.
Median household income in America is about
$55,000. You’re considered doing relatively well if you earn more,
particularly in low-cost areas. That’s what they bring in, but what do
they really have? The figure below plots financial assets held by the
upper middle class (household income from $50,000 to $75,000, and
$75,000 to $100,000) aged 40 to 55. Financial assets are any assets a
household owns that isn’t a house, car, or business, which means it
includes all retirement funds.
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