How much wealth do you need to be in top 1 percent??
If you want to become part of the "one percent" then you have to know how to build your wealth.
But it's also important to define exactly what we mean by "one percent" so that we can be clear on some possible requirements.
What it Means to Be "One Percent"
Wealth of one million dollars is not "one percent"
You probably read or heard of stories about how some "one percent" is worth millions or billions of dollars. This is one common and not necessarily correct way to understand what the "one percent" is.
The most widely-used definition of being in the "top one percent" generally refers to being in the top 1% of "personal income."
Personal income definition
Every year, you submit a tax return to the IRS (but we'd hope that you'd already know this).
On this tax return, you report your total income. Income can come from things like a job or a business – but it can also come through other investments (like if you sold off your house or cryptocurrency for profit).
However, most of the time income comes from those first two – wages you earned from a job or profits earned through a business.
How much $ to be in the top 1% of wage earners?
If you wanted to be in the top 1% in 2017, you would've had to earn $737,697 or more that year (source: Investopiedia).
Seems like a lot, huh?
But the thing about this figure is that it's referring to how much income, as in cash, was earned in a single year.
One problem – total net worth isn't the same as "income."
In fact, you theoretically add millions to your net worth, and not make a single penny in income.
That's because asset appreciation is not technically counted as income.
It may seem strange, but now you understand why it's important to define what we mean by "one percent!"
Perks of being in the 1%
Here are some perks you get when become the top 1% of income earners in the USA:
#1- You get to pay less in taxes.
There are 3 main sources of taxes: Federal, State, and local. Let’s look at the top 1% of income earners in the US. They get to choose where they want to live in order to earn more.
#2- You get to buy houses bigger and better.
While we look at homes as a sign of being financially stable, the top 1% of income earners also own bigger houses than the median home worth in the country. What’s more is that they also got the benefit of the Obama Housing Bubble of 2014.
#3- You get to vacation on the best beaches in the world.
The top 1% of income earners can spend their money on top destinations and resorts when they get to travel. They also got to have the advantage of access to private jets in order to get to and from these places.
#4- You get to take better care of your kids.
It is easier to spend more on your kids’ education, private lessons, and private education for your kids. There are more opportunities to make your kids do better in school as well as higher quality education.
#5- You get to buy the best.
While they get all this money, they also have the opportunity to buy the best. In the case of cars, we can say that the top 1% is the most profitable segment when it comes to car manufacturers.
#6- You get to buy the latest.
The top 1% can afford the latest and greatest when it comes to electrconics. You can get the latest in tech from phones to laptops to cameras to even cars.
#7- You get to live in bigger.
Bigger homes, bigger cars, bigger boat, big boats, Bigger anything in the world really. We’ve seen how big the latest and greatest can be in these parts of the world.
#8- You get to be famous.
If the top 1% of earners has a big following then they also get to be famous. There are many well known artists who have made it into the top 1%.
Here are some benefits you enjoy when you become an asset owner of a business
If you're trying to earn more to get to the one percent, here are some things you can do to improve your chances.
You can add a business, such as your own, to the list of business assets you own.
You can include the business in the asset portfolio you own. This makes the business part of the business asset allocation you own.
If the business is losing money, you will benefit by reducing the losses that business incurs when you put it on your asset portfolio. You will not make it lose money.
You can reduce the risk that you have to deal with for the business. If the business is in trouble, you no longer need to worry about the management and operations of the business. You can focus on your personal assets and your other business assets. You no longer need to be involved in the management and operations of your own business.