Friday, February 24, 2006

Federal Reserve reports Average Family Income dropped 2.3% - 2001 to 04

The average income of American families, adjusted for inflation, fell
2.3% to $70,700 in 2004 compared with 2001, according to the Federal
Reserve. The median, or point where half the families earned more
and half less, did rise slightly in 2004 (after adjusting for
inflation) to $43,200, up 1.6% from the 2001 level.

The median, or midpoint, for net worth rose 1.5% to $93,100 from 2001 to 2004.

The Fed survey found the share of Americans' financial assets invested in
stocks fell to 17.6% in 2004 from 21.7% in 2001, while the percentage
of Americans who owned stocks, either directly or through a mutual
fund, fell 3.3 percentage points to 48.6% in 2004, down from 51.9% in

The survey found the percentage of families with some type of
tax-deferred retirement account, such as a 401(k), fell 2.5 percentage
points to 49.7% of all families – however, the median for holdings in
retirement accounts rose 13.9% to $35,200

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