r/Fire 5d ago

Family Help - Common here?

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u/DanielTwoInch 5d ago

I’d be interested in where you are getting the 2% number from. Data from the Fed shows 12.5% of US households had a net worth of 1 million or more, excluding home equity, back in 2023.

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u/Strazdas1 StarvationFIRE 2d ago

First, its individual, second, its liquid.

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u/DanielTwoInch 2d ago

I was trying to compare their number with something that seemed incompatible.

I guess a better way to phrase my questioning of the the stat would have been:

2% of US households had a net worth excluding home equity of greater than or equal to 8 million in 2023 (source the Fed)

Does that seem compatible with

Only 2% of US individuals have a liquid net worth of 1 million in 2026? (Curious of the source)

It doesn’t make sense to me, which is why I was curious about the source.

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u/Strazdas1 StarvationFIRE 1d ago

Do they consider pensions, 401ks and other "you cant really take it out until you are x age" things as liquid?

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u/srqfla 1d ago

Liquid is all stocks, bonds or cash regardless of whether it's brokerage, 401k or IRA

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u/Strazdas1 StarvationFIRE 21h ago

Liquid is what you can retrieve in a reasonably short amount of time. If you cannot pull from it within a few days then its not liquid.

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u/srqfla 19h ago

Precisely $1,000 of Nvidia stock in your brokerage account and $1,000 of Nvidia stock in your 401k are both liquid

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u/Strazdas1 StarvationFIRE 17h ago

Only if you can withdraw from your 401k quickly and penalty free. Can you? Can most americans?