Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory

Top 1 Percent of Net Worth and Wealth in the United States of America

How Much Money Does It Take To Be In The Top 1% of Wealth and Net Worth in the United States

What does it take to be in the top 1% of wealth in the United States? Many of you write me and ask that question, hoping someday to make it into the top 1% of net worth but not sure where that line gets drawn. I thought it might be useful to provide a reference to which I could point people in the future whenever they write, as well as make for some interesting afternoon reading for those of you who are curious about the nature of the economic world in which we live.

Read more
General Electric Stock from the 1940s

Stocks vs Bonds vs Gold Returns for the Past 200 Years

I write a lot about investing in stock and investing in bonds over at Investing for Beginners at About.com, a division of The New York Times. There is a reason I tend to be far more favorable to equity investments (stocks) than fixed income investments (bonds) when it comes to long-term investing and why much…

Read more
Understanding Poverty by Ruby Payne

Being an Effective Educator and Communicator Requires an Understanding of the “Rules” of Your Students’ Social and Economic Class According to Ruby Payne’s Book A Framework for Understanding Poverty

My lunch with friends yesterday turned into a 3 to 4 hour event as we hung out at a local independent pizza parlor and discussed kids, love, True Blood, taxes, and a host of other things.  The topic of poverty came up (as is inevitably bound to happen when the group includes a social worker,…

Read more
Federal Reserve Bank

American Households Continue to Deleverage But That Only Tells Part of the Story

Americans Continue to Deleverage as Measured by Average Household Debt as a Percentage of After-Tax Income Paul Wiseman wrote in a recent Associated Press article: “Soaring housing prices in the mid-2000s made millions of Americans feel wealthier than they were. They borrowed against the inflated equity in their homes or traded up to bigger, more…

Read more
https:Power Couples and Marriage Income Inequality//www.joshuakennon.com/sum-small-things-theory-aspirational-class/

Income Inequality Is Caused By Single Parent Households and Assortative Mating Habits Just as Much as Technology

There is considerable academic evidence that one of the major drivers of income inequality in the United States is the difference in family formation, and assortative mating habits, between the upper and lower classes. Stated plainly, the upper class is more likely to get married, stay married, and have children within that marriage, while the lower class is more likely to have children out of wedlock or divorce. The results to net worth and income can be enormous over a lifetime.

Read more
Cost of Owning a Car Thumbnail

The Cost of Owning a Car: The Average American Spends 58.5¢ Per Mile Driven, or $8,776 Per Year Per Car

[mainbodyad]It always struck me as particularly stupid when people complained about the cost of gasoline, even when I was a teenager with very little money just learning about how investing worked. It seemed perfectly obvious to me that if an increase of $1 per gallon cut into your standard of living, you were living so…

Read more
Inflation and the Federal Reserve

New York Federal Reserve President William Dudley Teaches About Inflation Using the iPad … And Makes People Angry

There was a firestorm of controversy this morning following remarks by New York Federal Reserve Chairman William Dudley. In an attempt to explain how the Federal Reserve calculates inflation, the Fed President commented to a group of working class people that you can’t just look at the price of food – the price of everything has to be factored in to understand what is happening to the purchasing power of the dollar.

Read more

Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory