Can you guess a single asset that accounts for 30% of the average US portfolio? It’s not 401(k)

When most people imagine the wealth of the average American, They draw 401(k)smutual funds, perhaps a pile of cash hidden in your bank account. But if you dig into the data, the biggest part of the pie is the house, which is what you drive every day.

According to Federal Reserve 2022 Consumer Financial Survey – Latest data available – Major residences account for 30% of the total net worth of the average American household. That’s right. The roof above your head often holds more weight to the family’s finances than any stock ticker.

The report explores thousands of households across income bands and age groups every three years, uniquely watching what a typical American portfolio actually looks like.

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Here’s how the rest is broken down:

Retirement accounts like 401(k)S and IRAs come nextaccounts for 25% of household wealth. It’s a savings that most people don’t touch until they get older, but for many, it’s their biggest long-term bet.

Public equities and mutual funds account for 15% of their net worth. These are traditional stock market investments. This is the kind that appears to be at the top of the list. But for most households, it’s not a main course, it’s just a small portion of the pie.

Private business ownership or equity stakes accounts for 12%, which is more common among wealthy households and small business owners. This is a high-risk reward category. Depending on your success, you can tilt your upward or downward net worth significantly.

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Other real estate, Includes rental properties And vacation homes account for 10%. Not everyone is in the landlord’s game, but those who tend to diversify here.

Cash and deposits (checks, savings, emergency funds) make up on average only 5% of household wealth. It’s enough to pay your bills, but there are few factors behind long-term fiscal growth.

And finally, “other” assets such as vehicles, collectibles and other valuables total just 3%. They may feel like assets in a garage or attic, but they don’t move the needle much on paper.