Category: Finance | Title: Is a Net Worth of 700k Considered Rich | Tag: Net Worth | Meta Description: A factual look at whether a 700k net worth is considered rich, with data on U.S. wealth distribution and income benchmarks...
What Net Worth Is Considered Rich in the United States
A 700k net worth places a household well above the median but below the top tiers of American wealth. The Federal Reserve's Survey of Consumer Finances shows the median U.S. household net worth was about 192,000 in 2022, while the mean was roughly 1.06 million. A 700k net worth is higher than roughly 85 to 90 percent of households by net worth, according to Fed data. Financial planners often use the term "high-net-worth individual" for those with investable assets above 1 million, a threshold set by the SEC and used by firms like Goldman Sachs and Morgan Stanley for private banking services. At 700k, a household is typically classified as "affluent" rather than "wealthy" by wealth management firms and research firms such as Spectrem Group. Federal Reserve Survey of Consumer Finances
Net worth is calculated as total assets minus total liabilities, including home equity, retirement accounts, investment portfolios, and business interests, minus mortgages, student loans, and credit card debt. A 700k net worth can be built through homeownership, retirement savings, stock market investments, and small business equity. According to the Federal Reserve, the top 10 percent of U.S. families by net worth held about 69 percent of total family wealth in 2022, while the bottom 50 percent held about 2.5 percent. A 700k net worth sits in the upper-middle or lower-upper segment of the distribution, depending on age, location, and income. Forbes Advisor Net Worth Guide
How 700k Compares to Income and Wealth Benchmarks
The U.S. Census Bureau reported median household income of about 75,000 in 2023, and the Bureau of Labor Statistics reported mean weekly earnings of about 1,144 for full-time wage and salary workers. A 700k net worth is not directly a measure of income, but it reflects accumulated savings, investments, and asset values over time. The Investment Company Institute reported that U.S. households held about 132 trillion in total financial assets in 2023, with the top 10 percent of families owning about 89 percent of equities and mutual funds. A 700k net worth typically includes a mix of retirement accounts, taxable investment accounts, real estate, and business interests, and it can generate passive income through dividends, interest, and rental cash flow. Bureau of Labor Statistics
The Federal Reserve's Distributional Financial Accounts show that the top 1 percent of families by net worth held about 30 percent of all U.S. household wealth in 2022, with a threshold of roughly 10 million or more. The top 10 percent threshold was about 1.8 million, and the top 50 percent threshold was about 400,000. A 700k net worth is above the top 50 percent line but well below the top 10 percent line, placing it in the upper-middle wealth tier. Wealth concentration data from the Federal Reserve and the World Inequality Database shows that the top 1 percent of adults globally own about 45 percent of total household wealth, while the bottom 50 percent own less than 1 percent.