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To: Oblomov who wrote (160951)	4/19/2002 11:30:17 AM
From: GraceZ	Read Replies (1) \| Respond to of 436258

Net worth figures over a large population is a number that is particularly difficult to get a hold of, although I'm sure the IRS has access to that kind of data. Income is used simply because its a readily available figure that isn't subject to that much fudging. With net worth one can do all kinds of things to that asset side depending on how optimistic you are. I can tell you after helping any number of people work through a net worth statement that people are all over the scale it terms of dealing with reality. Truth is you can't eat net worth if the assets aren't liquid, although I do see a future where any number of boomers wind up eating their houses. Also, amazingly enough you find some people with extremely modest incomes with a higher net worth than people who have incomes that are higher by a large multiple. There's lots of fake millionaires out there, 1.2 in assets with 1.3 in liabilities but they have enough cash flow to keep it going. I have a couple I've worked with that never had a combined income over 50k yet they managed to save enough money to buy a house in one of the most expensive counties in Northern California, while living in that county (safe, good schools, low crime). Buying that house quadrupled their net worth within three years. Meanwhile I was trying to help someone else with their family finances, it seems as each year went by he made more money and their debt level went just a little higher. They were freakin out because they were unable to save money for their kids college, yet they had half the price of an Ivy league education parked in their garage....necessities I guess. These people made four times as much, the houses where they lived were considerably cheaper yet they couldn't save a dime. When I would point out that they needed to lower their spending with this or that, the answer was always the same, he needed to make more money!