I came across this article courtesy of Marc Faber at Calibrated Confidence. All the charts therein are interesting and worth a look. What caught my eye was this one – Median Household Net Worth by Age Group (1989-2010):
The chart very visually illustrates the decline in median household net worth in the USA over approximately the last two decades. This is not at all surprising, given current economics and the environment. What is slightly heartening, and to me a surprise, is that the rate of decline is somewhat less in the 65-74, and markedly less in the 75+ age bands. Does this point to the fact citizens are moving their investments into less risky assets as they age (in contrast to the high recent declines within the 45-54 and 55-64 bands). Also, the net wealth of these older groups appears to be holding up, when I would assume members are generally past the accumulation phase, and probably drawing down on retirement savings.
Any other interpretations or comments?
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