Meet the 'hand-to-mouth' wealthy
Do you live a life of luxury without saving a dime? You may be a High-Beta Rich HENRY.
This post comes from Robert Frank at partner cite CNBC.
Some call them HENRYs -- High Earners Not Yet Rich. Others call them the Faux Riche -- people who look rich but aren't.
In my last book, I called them the High-Beta Rich, a new class of wealthy whose spending and wealth fluctuate wildly with markets.
A new paper (.pdf file) calls them the "hand-to-mouth" wealthy. And it says there are 70 million such households in the U.S., suggesting that wealth today is far more precarious than many people think.
The paper -- by economists Greg Kaplan, Giovanni L. Violante and Justin Weidner -- says these families often own homes, cars and boats, spending virtually all of their paychecks.
The high costs of college and other bills have made many wealthy families feel more vulnerable to economic shocks, especially when their wealth is tied up in illiquid assets.
"The wealthy 'hand-to-mouth' are households who hold little or no liquid wealth (cash, checking and savings accounts), despite owning sizable amounts of illiquid assets," the study says.
The paper says that when governments create stimulus programs, they target the poor. But they might do well to target the hand-to-mouth wealthy as well, since they too are likely to spend the extra money and help the economy.
More from CNBC
gee give me a break this is just totally stupid article
Better article would be starving children across America need more money so they will not starve do not give very well paid people money as they obviously can not handle the money they do get.
Another elitist idea
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