Middle-class people may have a hard time believing some rich people are living paycheque-to-paycheque, but some advisors will recognize the situation investigated in a Brookings Institution paper.
Some wealthy families hold little cash or other liquid assets, even though they own real estate and investment accounts. In fact, retirement savings make up the bulk of their wealth.
In Canada, wealthy families make up more than 30% of the population, and there are more wealthy hand-to-mouth households than poor ones. The study also shows that most wealthy people with few liquid assets are in between 35 and 45 years old. They have median net incomes of about $62,000.
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