There has been lots of discussion about the ever-noticeable gap between rich and poor in this country. One of the more noticeable areas has been a divergence in wealth between those with lots of financial assets like stocks and bonds and those with few financial assets. A recent study by CreditSuisse Global looked at how the average net worth of Americans compared to individuals from other countries.
By using the measure of average net worth (A country's wealth divided by the number of citizens of that country) the U.S. ranked 4th below just Switzerland, Australia, and Norway with an impressive average wealth measure of about $301,000 (See blue bars in chart below). But when median net worth (the level of net assets where half the population has more and half has less) was looked at, the typical individual had a net worth of about $45,000. By this measure of median net worth, the U.S. ranked 19th, behind countries such as Spain, Ireland, and Italy (see red line in chart).
David A. Pace, CFA
Note: These comments and articles are for informational purposes only. Nothing in these articles are meant to provide specific investment advice and are not a substitute for professional advice from a qualified adviser. Since every investor's investment and personal circumstances are unique, he or she should always enlist the help of a competent and trustworthy professional in addressing their financial needs.