American Wealth: Own More Realize Less

American Wealthy: Own More Realize Less

According to one survey on around 3.5% USA Millionaire Households, these households account for more than half of the personal wealth. But the same people account for less than 30% of the Total American Income.

What is the logical reason behind it?

Well, this is because most of these people own some kind of business and they buy assets out of their businesses and they keep re-investing the profits of their businesses in buying more and more assets.

All of them own large volume of stocks. And they buy stocks to keep them forever. They sit on these stocks. And hold them for decades. And this is the reason they pay less in taxes and accumulate more money over the time.

They realize less in income and maximze their Capital Gains and valuations of their businesses. While most of the high income group of people realize more income and thus they have to pay more in taxes.

Rich people typically acquire more assets and keep these assets for several decades. And this is the reason they become richer and richer over the time. While people who live a high status lifestyle have to realize more income to fuel their expensive life styles and that’s why they have to pay more in taxes and thus they fail to accumulate significant amount of wealth.

Thus, the key of becoming wealthy is that, you acquire assets and hold them for years and decades. Alternatively you can create your own Asset out of scratch (Such as Business, Books, Music, Intellectual Properties…etc..) and keep that asset for years and become wealthy.