Private Wealth in America

Private Wealth in America

Few years back, a private study was done in USA on the private wealth of Americans. At that time, the Value of total private wealth was approximately $ 22 Trillion. And Millionaires own approximately half of this wealth means around $ 11 Trillion.

The Total personal income for the same period was estimated to be about $ 2.6 Trillion. Millionaires account for only about 30% of the Total Income or $ 0.78 Trillion. This means that millionaires as a group realize the equivalent of just 7% of their total wealth every year.

How Smart the Rich (Millionaires) Are?

They know since years that, how to maximize unrealized income and pay little or avoid taxes. The key of avoid taxes is that, you earn in Capital Gains & Valuations of Assets.

If you also want to win the game of money than you must have to play this game like rich. I mean you must have to make money in valuations and capital gains just like rich. Than and only you will be able to avoid taxes and build significant wealth.

Rich people buy and hold any assets typically for several decades. And thus, over the time they become extremely wealthy. All of those years they make money as a capital gains only which remains “On Paper” gain as unrealized income only. And that’s why they don’t have to pay any tax for this unrealized income.

The key of avoiding tax is that, you acquire some asset and hold that asset for years. This is the surest way of becoming wealthy over the time.