III - Household Assets

SAVINGS, INVESTMENT & DEBT OWNERSHIP

ASSETS OF HOUSEHOLDS

Where people save their money, how much they save and where they look for investment returns is influenced by many factors, including people’s appetite for risk, the state of the economy, the investment products available and incentives to save, such as tax advantages and matching funds provided by employers who offer retirement plans.

ASSETS AND LIABILITIES OF THE PERSONAL SECTOR, 1987-2007 (1)

($ billions, end of year)

	Value			Percent of total
	1987	1997	2007	1987	1997	2007
Total financial assets	$9,378.8	$24,307.8	$40,706.5	100.0%	100.0%	100.0%
Foreign deposits	9.8	37.2	81.1	0.1	0.2	0.2
Checkable deposits and currency	502.5	567.3	470.2	5.4	2.3	1.2
Time and savings deposits	2,234.5	2,677.2	6,313.6	23.8	11.0	15.5
Money market fund shares	267.7	625.2	1,453.9	2.9	2.6	3.6
Securities	2,986.3	11,190.0	14,571.6	31.8	46.0	35.8
Open market paper	55.3	77.1	159.7	0.6	0.3	0.4
U.S. savings bonds	101.1	186.5	196.4	1.1	0.8	0.5
Other Treasury securities	220.6	648.9	190.8	2.4	2.7	0.5
Agency- and GSE (2) -backed securities	32.8	398.9	889.4	0.3	1.6	2.2
Municipal securities	516.6	500.8	918.3	5.5	2.1	2.3
Corporate and foreign bonds	172.7	613.9	1,627.3	1.8	2.5	4.0
Corporate equities (3)	1,462.6	6,815.2	5,454.1	15.6	28.0	13.4
Mutual fund shares	424.5	1,948.8	5,135.6	4.5	8.0	12.6
Private life insurance reserves	289.5	632.7	1,156.1	3.1	2.6	2.8
Private insured pension reserves	348.6	1,116.3	2,526.8	3.7	4.6	6.2
Private noninsured pension reserves	1,386.0	3,759.9	5,855.2	14.8	15.5%	14.4%
Govt insurance and pension reserves	790.3	2,510.8	4,428.3	8.4	10.3%	10.9%
Miscellaneous and other assets	563.7	1,191.1	3,849.7	6.0	4.9	9.5%
Total liabilities	4,140.8	7,633.5	19,607.0	100.0	100.0	100.0
Mortgage debt on nonfarm homes	1,919.2	3,910.5	11,116.1	46.3	51.2	56.7
Other mortgage debt (4)	781.5	909.8	2,353.1	18.9	11.9	12.0
Consumer credit	698.6	1,344.2	2,556.6	16.9	17.6	13.0
Policy loans	55.3	104.6	114.5	1.3	1.4	0.6
Security credit	41.8	131.2	325.5	1.0	1.7	1.7
Other liabilities (4)	644.3	1,233.2	3,141.2	15.6	16.2	16.0
(1) Combined statement for household sector, nonfarm noncorporate business and farm business. (2) Government-sponsored enterprise. (3) Only those directly held and those in closed-end and exchange-traded funds. Other equities are included in mutual funds, life insurance and pension reserves. (4) Includes corporate farms. Source: Board of Governors of the Federal Reserve System, June 5, 2008.

The following two charts are based on the Survey of Consumer Finances, undertaken every three years by the Federal Reserve. The 2007 survey is currently being conducted.

NONFINANCIAL ASSETS HELD BY FAMILIES BY TYPE OF ASSET, 1998-2004

Percent of families owning asset (1)	Vehicles	Primary residence	Other residential property	Equity in nonresidential property	Business equity	Other	Any nonfinancial asset	Any asset
1998	82.8%	66.2%	12.8%	8.6%	11.5%	8.5%	89.9%	96.8%
2001	84.8	67.7	11.3	8.2	11.9	7.5	90.7	96.7
2004	86.3	69.1	12.5	8.3	11.5	7.8	92.5	97.9
By age of family head, 2004
Under 35 years old	82.9	41.6	5.1	3.3	6.9	5.5	88.6	96.5
35 to 44 years old	89.4	68.3	9.4	6.4	13.9	6.0	93.0	97.7
45 to 54 years old	88.8	77.3	16.3	11.4	15.7	9.7	94.7	98.3
55 to 64 years old	88.6	79.1	19.5	12.8	15.8	9.2	92.6	97.5
65 to 74 years old	89.1	81.3	19.9	10.6	8.0	9.0	95.6	99.5
75 years old and over	76.9	85.2	9.7	7.7	5.3	8.5	92.5	99.6
Percentiles of income, 2004 (2)
Less than 20	65.0	40.3	3.6	2.7	3.7	3.9	76.4	92.2
20 to 39.9	85.3	57.0	6.9	3.8	6.7	4.4	92.0	97.8
40 to 59.9	91.6	71.5	10.0	7.6	9.5	7.5	96.7	99.8
60 to 79.9	95.3	83.1	14.0	10.6	12.0	10.4	98.4	100.0
80 to 89.9	95.9	91.8	19.3	12.8	16.0	8.3	99.1	99.8
90 to 100	93.1	94.7	37.2	20.8	34.7	16.7	99.3	100.0
(1) Families include one-person units. (2) Ranges listed below represent percentiles rather than income levels. A percentile is a statistical ranking point. The 50^thpercentile represents the midpoint of all values. For example, at the 50^thpercentile, half of the families in the ranking fall above this income level and half fall below. Note: Latest data available. Based on surveys conducted every three years. Source: Survey of Consumer Finances, Board of Governors of the Federal Reserve System.

FINANCIAL ASSETS HELD BY FAMILIES BY TYPE OF ASSET, 1998-2004

Percentage of families owning asset (1)	Trans-action accounts (2)	Certi-ficates of deposit	Savings bonds	Bonds (3)	Stocks (3)	Mutual funds (4)	Retire-ment accounts (5)	Life insurance (6)	Other assets (7)	Any financial asset (8)
1998	90.5%	15.3%	19.3%	3.0%	19.2%	16.5%	48.9%	29.6%	15.3%	92.9%
2001	91.4	15.7	16.7	3.0	21.3	17.7	52.2	28.0	16.0	93.4
2004	91.3	12.7	17.6	1.8	20.7	15.0	49.7	24.2	17.3	93.8

By age of family head, 2004
Under 35 years old	86.4	5.6	15.3	(9)	13.3	8.3	40.2	11.0	14.5	90.1
35 to 44 years old	90.8	6.7	23.3	0.6	18.5	12.3	55.9	20.1	13.7	93.6
45 to 54 years old	91.8	11.9	21.0	1.8	23.2	18.2	57.7	26.0	18.3	93.6
55 to 64 years old	93.2	18.1	15.2	3.3	29.1	20.6	62.9	32.1	16.6	95.2
65 to 74 years old	93.9	19.9	14.9	4.3	25.4	18.6	43.2	34.8	20.9	96.5
75 years old and over	96.4	25.7	11.0	3.0	18.4	16.6	29.2	34.0	24.8	97.6

Percentiles of income, 2004 (10)
Less than 20	75.5	5.0	6.2	(9)	5.1	3.6	10.1	14.0	10.2	80.1
20 to 39.9	87.3	12.7	8.8	(9)	8.2	7.6	30.0	19.2	14.8	91.5
40 to 59.9	95.9	11.8	15.4	(9)	16.3	12.7	53.4	24.2	17.2	98.5
60 to 79.9	98.4	14.9	26.6	2.2	28.2	18.6	69.7	29.8	19.0	99.1
80 to 89.9	99.1	16.3	32.3	2.8	35.8	26.2	81.9	29.5	23.5	99.8
90 to 100	100.0	21.5	29.9	8.8	55.0	39.1	88.5	38.1	26.4	100.0

Percent distribution of amount of financial assets of all families
1998	11.4	4.3	0.7	4.3	22.7	12.4	27.6	6.4	10.3	100.0
2001	11.5	3.1	0.7	4.6	21.7	12.2	28.4	5.3	12.6	100.0
2004	13.2	3.7	0.5	5.3	17.6	14.7	32.0	3.0	10.1	100.0
(1) Families include one-person units. (2) Includes checking, savings and money market deposit accounts; money market mutual funds; and call accounts at brokerages. (3) Covers only those stocks and bonds that are directly held by families outside mutual funds, retirement accounts and other managed assets. (4) Excludes money market mutual funds and funds held through retirement accounts or other managed assets. (5) Covers IRAs, Keogh accounts and employer-provided pension plans. Employer-sponsored accounts are those from current jobs (restricted to those in which loans or withdrawals can be made, such as 401(k) accounts) held by the family head and that person's spouse or partner as well as those from past jobs held by either or both of them. Accounts from past jobs are restricted to those from which the family expects to receive the account balance in the future. (6) Cash value. (7) Includes personal annuities and trusts with an equity interest, managed investment accounts and miscellaneous assets. (8) Includes other types of financial assets, not shown separately. (9) Ten or fewer observations. (10) Ranges listed below represent percentiles rather than income levels. A percentile is a statistical ranking point. The 50^thpercentile represents the midpoint of all values. For example, at the 50^thpercentile half of the families in the ranking fall above this income level, and half fall below. Note: Latest data available. Based on surveys conducted every three years. Source: Survey of Consumer Finances, Board of Governors of the Federal Reserve System.