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LOS ANGELES - Recent data from the Federal Reserve reveals that by the end of the fourth quarter of 2023, the wealth amassed by America's wealthiest 1% reached an unprecedented milestone of $44.6 trillion.
The collective net worth of this select cohort, delineated by the Fed as individuals holding assets surpassing $11 million, surged by $2 trillion during the corresponding period.
Furthermore, this figure fluctuates based on geographical location.
The surge in wealth predominantly stemmed from stock holdings, with the value of corporate equities and mutual fund shares owned by the top 1% skyrocketing from $17.65 trillion in the previous quarter to $19.7 trillion.
The recent historic surge in wealth for the top 1% is part of an ongoing exceptional trend that began in 2020 when the COVID-19 pandemic shook the markets.
Since the onset of 2020, there has been a remarkable surge in the wealth of the top 1%, boasting an eye-popping increase of almost $15 trillion, marking a staggering 49% growth. Moreover, the tide of prosperity hasn't been limited to the upper echelons of society. Middle-class Americans, spanning from the middle 50% to the 90%, have also experienced a significant rise in their wealth, witnessing a remarkable 50% increase.
As the evidence suggests a widening gap between the wealthy and the rest, breaking into the coveted top 1% of global wealth is becoming progressively more challenging and costly.
How much do you need to join the 1%?
In the United States specifically, the forthcoming 2024 wealth report by Knight Frank reveals that individuals aiming to join the prestigious top 1% now need to possess a minimum net worth of $5.8 million. This marks a notable 12% increase from the previous year's requirement of $5.1 million.
By comparison, as of 2022, Americans needed a net worth of $4.4 million to attain the coveted 1% status.
Despite the United States boasting the world's largest economy, the threshold for entering the top 1% is substantially higher in other countries.
Being rich also depends on where you live
Monaco stands as the most challenging country to ascend to the ranks of the wealthiest, demanding a staggering $12.9 million—an increase of 3.2% from the preceding year.
Following closely behind, Luxembourg and Switzerland also maintain higher entry thresholds, with requisites of $10.83 million and $8.5 million, respectively, to secure a position within the top 1%. These figures emerge from the research conducted by Knight Frank, as initially disclosed by Bloomberg.
Ranked fourth globally, the United States requires substantial assets to join this ultra-exclusive club. Following suit are Singapore, Sweden, Australia, New Zealand, Ireland, and Germany, each with their respective entry criteria.