the top 1% of wealth in the United States

We already looked at how much money it takes to be in the top 1% of wealth in the United States.  Now we are going to look further into the top 1% of wealth.  This category, those who have between $5 and $10 million in investments, has been called by some The New Elite.  Personally, I call this the capitalist class and prefer that moniker.  Jim Taylor and Doug Harrison define this group as “people in the top 1 percent of half of 1 percent of the American economic spectrum: These people typically have at least $5 million in liquid assets (i.e., not including their primary residence) or have at least $500,000 in annual discretionary income.”  Those same authors consider affluent to be people who are “the top 5 percent of the economic ladder, which is roughly at least $1 million in liquid assets or $125,000 in annual discretionary income”.

But this begs the question: Who are the new elite, or the top 1% of wealth in the United States?  What behaviors and characteristics are displayed be members of the capitalist class?  Here are some facts and research from a great book written by some specialists who are among the leading marketers to the rich in America.  It is their job to know who the rich are, how they behave, where they live, what they drive, and how to turn them into customers.

General Facts About The New Elite
For every 100 new elite members in the United States:

• The average age is 47 years old
• 90 to 95 made the money themselves; only 5 to 10 inherited it
• 90 are college graduates; 10 are not
• For those who are college graduates, 3 out of 4 did not attend an Ivy League school
• 8 are Asian (defined including those from Indian subcontinent); nearly 3x the rate found in the population
• 96 do not own a yacht; 4 do
• 50 haven’t furnished their homes in any way that would reflect their economic status

Stealth Wealth
The most shocking statistic about the new elite in the United States?  For every 100:

• 80 practice “stealth wealth” so friends, family, and neighbors don’t know they are members of the new elite.  
• 20 are known to be rich by family and friends

Why doesn’t this get covered in the media?  As Jim Taylor, Doug Harrison, and Stephen Kraus put it, “Happily married man builds a successful business and lives a quiet, happy life” isn’t necessarily news.  “Rich guy with many girlfriends buys huge yacht featuring built-in stripper pole” is going to get more headlines.

Family Background: 
For every 100 new elite in the United States:

• 8 grew up in poverty
• 28 grew up in lower middle class
• 36 grew up in middle class
• 25 grew up in upper middle class
• 8 grew up in a wealthy or affluent class

Source of Wealth:
For every $100 the new elite in the United States making more than $500,000 per year in discretionary income have in net worth:

• $35 came from owning their own business
• $28 came from working for someone else’s business
• $17 came from financial investments
• $13 came from real estate
• $4 came from inheritance
• $2 came from other sources

Where The New Elite Grew Up:
For every 100 new elite in the United States:

• 45 grew up in the suburbs
• 27 grew up in urban areas
• 20 grew up in rural areas
• 9 grew up in the inner city
• 1 grew up in a gated community

What The New Elite Drive:
The new elite in the United States spent $50,000 on average for their car.  Here are the top ten vehicles owned by the wealthy.  The figures add up to more than 100% due to many households owning more than one type of vehicle.

• 25% drive a Mercedes-Benz
• 23% drive a BMW
• 22% drive a Lexus
• 18% drive a Toyota
• 16% drive a Chevrolet
• 14% drive a Ford
• 12% drive a Honda
• 12% drive a Porsche
• 10% drive a Volvo
• 10% drive an Audi

Where the New Elite Live:
For every 100 new elite in the United States:

• 20 live in the New York/New Jersey/Connecticut corridor
• 17 live in California
• 63 are dispersed throughout the remainder of the United States