Are you part of the 1%?

On a radio show a while ago,  I featured the financial profile of an anonymous client.  The family was successful through hard work, having a plan, and sticking with a plan. Most importantly, the family was successful financially because they began their plan soon after leaving school.  In so doing, compounding is allowed work its magic.   It shows how easy it is to become successful in this land of ours if you have and stick to a plan.

A listener then sent us a text message saying, “Ya that is all fine and well but this person is a member of the one percent.  What about poor old me? What should I do to become wealthy?"

The listener was referring to the wealthiest one percent of Canadians.  This listener missed my point. I became annoyed that I had to almost apologize for also being a member of the one percent.  Success must be celebrated.  I congratulate members of the one percent club or you for being on your way to becoming a member.  But I then asked myself who are the one percent in Canada and in the world, for that matter? So here is a little unplugged night musings I did a few days ago on our pack, the one percent.

To be in the one percent; Income -$191,000, in 2011 there were 272,000 Canadians who qualified, yes this is the minimum threshold.

Top 1% tend to be male, almost 80%, married and middle aged, i.e. 45-65—median age 52.

Women now make up 20% of the 1% income earners, in the early 1980’s that number was 10%.

Occupation of the one percenters; dentists, management, doctors and contrary to popular belief, most one percenters DO NOT work in finance or on Bay Street.

One percenters tend to live in Alberta, Toronto, Edmonton and Vancouver.

40% live in Ontario, 23% live in Alberta and Canada’s highest earners live or “lived” in Calgary.

Canada’s one percent work over  50 hours a week.

Top 1% tend to have at least a million dollars in financial assets including stocks, bonds and cash, not including their homes.

Average Canadian family is worth roughly $230,000 with the total worth in Canada at about 7 trillion dollars.

Top 1% took home 10% of Canada's income AND PAID 21% of the countries taxes. Re-read this please.

Top 10% of income earners paid 55% of all taxes in Canada.  Re-read this as well.  Which leads me to this. Willie Sutton, a bank robber, asked why he robbed banks and his answer was because that is where the money is.—Suttons Law.

The super wealthy, top 1% of the top 1% earn  $650,000, if you know anyone who earns that, you can call them the top o% ne thousand.

Looking to the United States, there the Top 1% earns $370,000 and pays 37% of all income tax.  

And Globally who are the top 1%?  $600,000 in assets BUT only $34,000 in annual income. Funny how half of the world’s richest people live in America.

So how are you doing relative to your age? See the table below and take a look as to how you stack up.  This is a total net worth picture so add up all your assets, house included, deduct your liabilities and see your financial health. 

Target Net Worth for Singles                                                                   Target Net Worth for Couples

Age Sufficient Good Excellent Rich
20 $1000.00 $2000.00 $20,000.00 $50,000.00
25 $5000.00 $30,000.00 $120,000.00 $250,000.00
30 $20,000.00 $60,000.00 $250,000.00 $600,000.00
35 $40,000.00 $120,000.00 $400,000.00 $1,000,000.00
40 $80,000.00 $200,000.00 $600,000.00 $1,500,000.00
45 $130,000.00 $300,000.00 $900,000.00 $2,200,000.00
50 $190,000.00 $430,000.00 $1,250,000.00 $3,000,000.00
55 $250,000.00 $600,000.00 $1,700,000.00 $4,000,000.00
60 $320,000.00 $800,000.00 $2,200,000.00 $5,000,000.00
65 $400,000.00 $1,000,000.00 $2,500,000.00 $6,000,000.00
70 $370,000.00 $950,000.00 $2,400,000.00 $6,000,000.00
75 $340,000.00 $900,000.00 $2,300,000.00 $5,500,000.00
80 $310,000.00 $850,000.00 $2,100,000.00 $5,000,000.00
85 $280,000.00 $800,000.00 $1,800,000.00 $4,500,000.00
90 $250,000.00 $700,000.00 $1,500,000.00 $4,000,000.00
95 $210,000.00 $600,000.00 $1,200,000.00 $3,500,000.00
100 $170,000.00 $500,000.00 $900,000.00 $3,000,000.00
Age Sufficient Good Excellent Rich
20 $2000.00 $5000.00 $40,000.00 $60,000.00
25 $8000.00 $40,000.00 $200,000.00 $300,000.00
30 $30,000.00 $100,000.00 $400,000.00 $800,000.00
35 $60,000.00 $180,000.00 $700,000.00 $1,500,000.00
40 $100,000.00 $300,000.00 $1,100,000.00 $2,500,000.00
45 $150,000.00 $500,000.00 $1,500,000.00 $3,700,000.00
50 $210,000.00 $700,000.00 $2,000,000.00 $5,000,000.00
55 $270,000.00 $950,000.00 $2,500,000.00 $6,500,000.00
60 $340,000.00 $1,200,000.00 $3,000,000.00 $8,000,000.00
65 $420,000.00 $1,500,000.00 $3,500,000.00 $9,500,000.00
70 $400,000.00 $1,300,000.00 $3,500,000.00 $10,000,000.00
75 $390,000.00 $1,200,000.00 $3,400,000.00 $10,100,000.00
80 $370,000.00 $1,100,000.00 $3,200,000.00 $10,200,000.00
85 $350,000.00 $1,000,000.00 $2,900,000.00 $10,400,000.00
90 $320,000.00 $900,000.00 $2,600,000.00 $10,600,000.00
95 $290,000.00 $800,000.00 $2,300,000.00 $10,800,000.00
100 $260,000.00 $700,000.00 $2,000,000.00 $11,000,000.00