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Research Outline

Prepared for Paul D. | Delivered February 10, 2020

Lawsuits against Individuals with Assets

Goals

Identify insights about lawsuits against individuals and determine how many individuals have assets to protect, even if they may not have $25,000 in cash savings. Focus particularly on individuals with wealth concentrated in non-liquid assets, like real estate investors or business owners.

Early Findings

  • Individuals in the 25th to 90th wealth percentiles in the US have the largest percentage of their wealth stored in home equity. The wealthier a person is, the more likely they are to have their wealth stored in business equity or net other financial wealth.
  • According to the Klemm Analysis Group, 36% to 53% of small businesses are sued.
  • Almost 75% of aggregate household assets are in the form of financial assets, mostly stocks and mutual funds, retirement accounts, and closely-held businesses. Real estate makes up the majority of nonfinancial assets.
  • Only 37% of Americans have enough savings to pay for a $500 or $1,000 emergency and 56.3% of people have less than $1,000 in their checking and savings accounts combined.
  • People with a household income of $115,000 or higher have an average savings of $37,645.