Can You Guess What Single Asset Makes Up 30% Of The Average American's Portfolio? It's Not a 401(k)

When most people imagine the average American's wealth, they picture 401(k)s, mutual funds, maybe a pile of cash stashed in a bank account. But if you dig into the data, it turns out the biggest piece of the pie is something you drive by every day: a house.

According to the Federal Reserve's 2022 Survey of Consumer Finances — the most recent data available — primary residences make up 30% of the average American household's total net worth. That's right. The roof over your head often holds more weight in a family's finances than any stock ticker ever could.

The report, which surveys thousands of households across income brackets and age groups every three years, gives a unique look into what the typical American portfolio really looks like.

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Here's how the rest of it breaks down:

Retirement accounts like 401(k)s and IRAs come next, accounting for 25% of household wealth. It's the kind of savings most people don't touch until they're older, but for many, it's their biggest long-term bet.

Public equities and mutual funds make up 15% of net worth. These are the traditional stock market investments — the kind you'd expect to see topping the list. But for most households, it's just a slice of the pie, not the main course.

Private business ownership or equity stakes account for 12%, though this is more common among wealthier households and small business owners. It's a high-risk, high-reward category — one that can heavily tilt net worth upward or downward depending on success.

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Other real estate, including rental properties and vacation homes, makes up 10%. Not everyone is in the landlord game, but those who are tend to diversify here.

Cash and deposits — the checking, savings, and emergency funds — only make up 5% of household wealth on average. It's enough to pay bills, but hardly the driver of long-term financial growth.

And finally, "other" assets like vehicles, collectibles, and miscellaneous valuables total just 3%. While they might feel like assets in the garage or attic, they don't move the needle much on paper.

So why does this matter?

Because the way wealth is held in America isn't just about the number in your retirement account — it's about where your money lives. And for most households, that's still in real estate. It's a reminder that while investing is important, owning a home is still the biggest building block of wealth for everyday Americans.

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