Came across this interesting article about building wealth. Here are my key takeaways. I would like to hear your thoughts on it.
In the United States more than almost anywhere else, wealth and income are concentrated among business owners and landlords. That club, blessed by capitalism, is becoming increasingly difficult to join.
Not sure if this claim is true because there are certainly lots of people who built their wealth through traditional passive investments like 401k, Roth IRA, index funds. This sub is proof of that.
In every country Fessler and Schürz studied, homeowners’ wealth hovers near the national average. The biggest gaps are between those who own businesses and rental properties and their customers and tenants. The top 5% are most likely to own businesses or rental properties. The authors found this polarization has increased since 1962.
Seeing this kind of stuff makes me wonder if I should get into real estate investing. I hear it involves lots of debt which is something I’m not good at dealing with.
Are you folks sticking with passive investing or investing in real estate as well?