TIME Economy

Report: Richest 1% Holds Nearly Half of the World’s Wealth

Luxury Superyachts At The Monaco Yacht Show
A Porsche 918 Spyder automobile, produced by Porsche SE, sits on the deck of the 88m luxury superyacht Quattroelle, in Monaco, France, on Wednesday, Sept. 25, 2013. Balint Porneczi—Bloomberg / Getty Images

A new Credit Suisse report finds the gap between rich and poor widening on a global scale

The world not only surpassed a new milestone of wealth creation in 2014, but the richest 1% now own nearly half of the planet’s wealth, according to a new Credit Suisse report published Tuesday.

The Global Wealth Report estimated that the world’s combined wealth reached $263 trillion in 2014, a $20.1 trillion increase over the previous year. It marked the highest recorded increase since the financial panic of 2007, but the greatest accumulations of wealth occurred at the very upper echelons of earners.

“Taken together, the bottom half of the global population own less than 1% of total wealth,” the report said. “In sharp contrast, the richest decile hold 87% of the world’s wealth, and the top percentile alone account for 48.2% of global assets.”

Credit Suisse also noted widening gaps between the rungs of the wealth ladder: While only $3,650 would place a person in the wealthier half of the global population, $77,000 was needed to reach the top 10% and $798,000 to hit the top 1%.

MONEY financial advisers

Get in Touch With Your Prejudices…About Money

Tipped scale
Steven Puetzer—Getty Images

Financial planners need to understand that their feelings about wealth are in fact their feelings — not necessarily their clients'.

It’s only human to hear and see a situation through the lens of our bias and experience. And that’s often where we tap into when we speak.

So, when years ago, a client of mine expressed how she and her boyfriend were “freaked out” by his sudden and very dramatic jump in income, I can forgive myself for bungling my reply. I don’t remember exactly what I blurted out, but it was probably something along the lines of “What do you mean freaked out? Most people would love to be in your situation.”

I saw their situation through my lens: If he were well paid for work that had been his life’s passion, that could only be a good thing. I just couldn’t relate to the stress they were feeling and the cascading dominoes of what that high income now meant for them.

The reality is that their stress was related to the change they were experiencing, the change that psychologist Jim Grubman, in his book Strangers in Paradise, likens to what immigrants experience upon arriving in a new land. With both my client and her boyfriend having earned modest incomes up until then, how would this high income change each of them? How would it impact their relationships now that they had arrived in the Land of Wealth? Could they adapt in a healthy way? What if they bungled it?

Because of my lens and the money scripts playing in my own head, my ears focused just on the part about their jump in income. It was only because I asked her to elaborate on her “freaking out” that I understood the stress they felt. It’s now easy to see that I should have known that wealth and stress often go hand in hand.

This experience reinforced how important it is to bring my own biases to the surface and identify the lens I wear. It also reiterated that while it’s essential to learn about tax strategies and portfolio design, it’s equally important to continually study the cultural and psychological aspects of money. These go hand in hand too.

It’s from this place of deeper self-awareness and deeper understanding of the psychological side of money that I can truly be present with my clients who experience a windfall, to anchor them as the tidal wave hits, and to move forward with them after the wave passes.

Here are some resources I’ve found helpful in understanding my own biases surrounding money and getting a better idea of what my clients are thinking:

  • The Soul of Money book and workshop with Lynne Twist (www.lynnetwist.com). This was very useful for me at the beginning of my financial planning career; it helped me let go of a lot of mental baggage related to money.
  • Money Psychology teleclasses with Olivia Mellan (www.moneyharmony.com). Taking her classes, along with being coached by her, increased my understanding of gender and money, and how couples communicate about money.
  • Facilitating Financial Health: Tools for Financial Planners, Coaches, and Therapists by Brad Klontz, Rick Kahler, and Ted Klontz. This important and accessible textbook for financial planners includes useful exercises to use with clients.
  • Strangers in Paradise by James Grubman (www.jamesgrubman.com). This book about generational wealth transfer among the superrich made me think more about what clients at all income levels go through when they become wealthier.
  • The Challenges of Wealth: Mastering the Personal and Financial Conflicts by Amy Domini, Dennis Pearne and Sharon Lee Rich. I read this when I had my first client who inherited wealth. It has exercises to help clients who feel knocked over by the experience.
  • Sudden Money: Managing a Financial Windfall by Susan Bradley and Mary Martin. Written for the general public, it has advice for dealing with specific types of windfalls, whether it results from the death of a parent or winning the lottery. One important lesson: In these situations, it’s as normal and helpful to have a therapist as it is to have a lawyer or accountant on the client’s financial team.

——————-

Jennifer Lazarus is a certified financial planner and the founder of Lazarus Financial Planning, an independent, fee-only firm specializing in the financial planning needs of socially responsible investors in their 20s to 50s. She most enjoys helping people reach a place of empowerment and financial calm.

MONEY wealth inequality

The “Billionaire Census” Will Make You Hate the Ultra-Rich Even More

Private jet with red carpet
Jupiterimages—Getty Images

A new study gives some insight into how billionaires live. And yeah, it's about as cringey as you would expect.

Let’s face it, America has a complex relationship with the very rich.

On one hand, there’s a deep American tradition of respecting and even revering financial success, not least because of the moxy, gumption, elbow grease, and/or bootstrapping it often takes to achieve it.

On the other hand, there’s a growing belief that the playing field is unfairly tilted in favor of the rich — a belief driven by the fact that wage growth in the U.S. has stagnated for the past decade-plus and the top 10% of American earners control almost 75% of the country’s wealth.

So there’s definitely some don’t-call-it-class tension in this country, not to mention the world at large — and a recent “Billionaires Census” published by UBS and Wealth-X will do little to assuage it.

The report doesn’t quite live up to its promise of delivering “groundbreaking research on the world’s ultra high net worth (UHNW) population.” (Shocker: Rich people like rich people things.) But it does succeed at reminding everyone that, as F. Scott Fitzgerald wrote long ago, the rich “are different from you and me.” (In case you didn’t know that already.)

Some highlights:

  • There are 2,325 billionaires in the world who collectively control $7.3 trillion dollars in total wealth. For perspective, that means a group of people about the size of a typical suburban high school student population could fund the entire United States defense budget for 14 years and still have enough left over to buy a spaceship (or three).
  • If you saw that last statistic and though, “Wow, I just wish there could be even more ultra-rich people” you’re in luck! The number of billionaires is expected to increase by more than 1,000 over the next six years.
  • The “typical billionaire” has $3.1 billion in assets and grew his wealth by 4.4% last year. That doesn’t sound like much, but here’s the thing about having lots of money: A median American household would make $13,244 if their net worth increased by 4.4%. The average billionaire pulling the same returns adds $136 million to his fortune.
  • Roughly half of all billionares are women. Just kidding: They’re almost all men. Only 286, or slightly more than one in ten ultra-rich people, are female. And no, that doesn’t mean the business word has at least allowed that many women to share in the spoils. Most female billionaires (65%) inherited their wealth, compared to 13% of male billionaires.
  • About 35% of billionaires don’t a have a college degree, which is probably something Peter Thiel repeats a lot at dinner parties.
  • According to the report, which includes a 2015 “Billionaire Social Calendar,” events like “Antigua Sailing Week” and the “Singapore Yacht Show” are a “‘must go’ for many billionaires and their social circles.”
  • “21% of Dubai’s billionaires have specific interest in private jets.”

The report can be enjoyed in full here.

MONEY Odd Spending

Got $9,000 Lying Around? Join the New Facebook for the Rich

The days of slumming it on Facebook are over for anyone willing to shell out a big down payment and then a few thousand bucks a year.

MONEY Investing

35 Smart Things to Do With $1,000 Now

Andrew B. Myers

These moves can make you smarter, healthier, happier—and richer.

1. Buy 1 share of Priceline Group THE PRICELINE GROUP INC. PCLN 0.3802%
The fast-growing travel biz has just 4% global market share, leaving plenty of room to expand.

2. Buy 10 shares of Apple APPLE INC. AAPL 1.4648%
The Mac daddy has a dividend yield of 1.9% and a cheap price/earnings ratio of 14.1.

3. Buy 50 shares of Ford FORD MOTOR CO. F 0.2861%
The automaker has a P/E of 10.5, a 2.8% dividend yield, and a record (5%) market share in China.

4. Grab the last of the great TVs
While they’re considered superior to LCDs—for having deeper blacks and any-angle viewing—plasma TVs haven’t been profitable enough for manufacturers, so most are curbing production. LG is one of the last in the game, and its ­60-inch 60PB6900 smart TV (around $1,000) has apps to stream digital content and 3-D performance besting its peers. Get the extended warranty, since a service company would have to replace the TV if parts are no longer available.

5. Kick tension to the curb with yoga…
Half of workers say they’re less productive due to stress, the American Psychological Association found; worse, research from the nonprofit Health Enhancement Research Organization found that health care expenses are 46% higher for stressed-out employees. Regularly practicing yoga can help modulate stress responses, according to a report from Harvard Medical School. Classes cost about $15 to $20 a pop, which means that $1,000 will keep you doing downward dog twice a week for about half a year.

6. …Or acupuncture
A recent article in the Journal of Endocrinology found a connection between acupuncture and stress relief. Your insurer may cover treatment, but if not, sessions run $60 to $120 a piece. So you can treat yourself to around 10 to 15 with $1,000.

7. …Or biking
Research suggests that 30 minutes a day of moderate exercise can lower levels of the stress hormone cortisol. So take a bike ride after work. The ­Giant Defy 2 ($1,075) is one of the best-value performance bikes out there, Ben Delaney of BikeRadar.com says.

8. Give your kids ­a jump on retirement
Assuming your kids earn at least a grand this year from a summer job or other employment, you can teach them the importance of saving for retirement by depositing $1,000 (or, if they earn more and you’re able, up to $5,500) into Roth IRAs in their names. Do so when the child is 17, and it’ll grow to over $18,400 by the time he’s 67 with a hypothetical 6% annual return, says Eau Claire, Wis., financial planner Kevin McKinley.

9. Get over your midlife crisis
Would getting behind the wheel of your dream vehicle make you feel a teensy bit better about reporting to a 30-year-old boss? Then sow your oats—for 24 hours. Both Hertz and Enterprise offer luxury rentals; you can find local outfits by searching for “exotic car rental” and your city. Gotham Dream Cars’ Boston-area location rents an Aston Martin Vantage Roadster for $895 a day.

 

Andrew B. Myers

10. Iron out your wrinkles
For a safer and cheaper alternative to going under the knife, try an injectable dermal filler. Dr. Michael Edwards, president of the American Society for Aesthetic Plastic Surgery, recommends Juvéderm Voluma XC, which consists of natural hyalu­ronic acid that helps smooth out deep lines and adds volume to cheeks and the jaw area. It lasts up to two years and costs near $1,000 per injection.

11. Live out a dream
Play in a fantasy world with these adult camps, which cost in the neighborhood of $1,000 with airfare: the four-day Adult Space Academy in Huntsville, Ala. ($650); the Culinary Institute of America’s two-day Wine Lovers Boot Camp in St. Helena, Calif. ($895); or the one-day World Poker Tournament camp in Vegas ($895).

12. Hire someone to fight with your folks
Is your parents’ home bursting at the seams with decades of clutter … er, memories? Save your breath—and sanity—by hiring a profes­sional organizer (find one at napo.net) for them. Mom and Dad may listen more to an impartial party when it comes to deciding what to toss, says Austin organizer Yvette Clay. Focus on pile-up zones, like the basement, garage, and living room (together, $500 to $1,500).

13. Launch you.com
A professional website will help you stand out to employers, says Jodi Glickman, author of Great on the Job. Buy the URL of your name for about $20 a year from GoDaddy and find a designer via Elance​.com or Guru.com; $1,000 should get you a nice-looking site with a bio, blog, photos, and portfolio of your work.

14. Become a techie—or just learn to talk to one
Technical knowledge isn’t just for IT folks anymore. “Digital literacy is becoming a required skill,” says Paul McDonald, a senior executive director of staffing agency Robert Half International. Get up to speed with one of these strategies. Understanding how websites, videogames, and apps are built is useful to almost any job dealing in big data or search algorithms, says McDonald. Take a course in programming for nonprogrammers at ­generalassemb.ly ($550), then get a year’s subscription to Lynda.com ($375) for more advanced online tutorials.

15. Get tweet smarts
Take a class to give you expertise—and confidence— in using social media and analyzing metrics. MediaBistro’s social media boot camp includes five live webcast sessions for $511, and you can add four weeks of classroom workshops with pros for $449. #olddognewtricks

16. Buy the Silicon Valley gear
Need a new laptop now that you’re a tech whiz? To best play the part, go with Apple’s MacBook Air ($999) or its big brother the MacBook Pro ($1,099). With a long battery life and powerful processors, the Air and Pro are the preferred picks for developers, coders, and designers, says PCmag.com’s Brian Westover.

David Kilpatrick—Alamy

17. Save your cellphone camera for selfies
Your most important memories shouldn’t be grainy. Get a digital SLR camera featuring a through-the-lens optical viewfinder, “which is still essential for shooting action,” says Lori Grunin of CNET. Her pick, Nikon’s D5300 ($1,050). Its 18–140mm lens produces sharp images shot quickly enough for most personal photography.

18. Class up your castle
Interior decorating can cost a fortune—insanely priced furnishings, plus a 30% commission. Homepolish.com, launched in 2012 and now in eight metro areas, upends the model. The site’s decorators charge hourly ($130 or less) and suggest affordable furnishings.

19-21. Hire a good manager
With only 10 C-notes, your mutual fund choices are limited by minimum investment requirements. Besides simply letting you in the door, these actively managed funds have relatively low fees and beat more than half their peers over three, five, and 10 years:
Oakmark Select large blend; 1.01% expenses
Schwab Dividend Equity large value, 0.89% expenses
Nicholas large growth, 0.73% expenses

22. Primp the powder room
Get a new sink and vanity for a refresh of your guest bathroom without a reno. You can find a combined vanity and sink set for under $650; figure another $100 to $200 each for faucet and labor.

23. Replace light fixtures
Subbing in new lighting in the dining room, the front hall, and possibly the kitchen can take 20 years off your house, suggests Pasadena realtor Curt Schultz. You’re likely to pay $100 to $400 per fixture, plus $50 to $100 for installation.

24. Swap out the front door
It’s the first impression guests and buyers have of your home. Look for a factory-finished door—possibly fiberglass if it’s a sunny southern or western ­exposure without an overhang. You could pay $1,000 for the door and the installation.

25. Catch up on retirement.
If you’re 50 or older, you can put in $1,000 more in an IRA (above the $5,500 normal limit) each year. Do so from 50 to 65, and you’ll have $27,000 more in retirement assuming you get a 6% annual return, per T. Rowe Price.

Ingolfur Bjargmundsson—Getty

26. Fly solo to see the Northern Lights
As more companies package deals to Iceland, prices are dropping, says Christie McConnell of Travelzoo.com. You could recently find four-night packages with airfare, hotel, and tours for $800 a person. Go in late fall to see the Northern Lights.

27. Hit the beach in Hawaii
The islands are still working through the overbuilding of hotels that began before the recession, says Anne Banas of Smartertravel.com. Three-night packages for fall with hotel and airfare start around $500 a person from the West Coast.

28. Give your car a makeover
You can’t get a new set of wheels for 1,000 smackers, but you can make your old car feel new(ish) again with this slew of maintenance fixes: A new set of tires ($600), a full car detail ($100), new wiper blades ($50), a wheel alignment ($150), and a synthetic oil change ($100). You’ve likely been putting these off until something breaks, but there’s good reason to do them all at once. Besides giving your car a smoother ride, “this preventative maintenance will help you nurse your car longer, while also saving some gas,” says Bill Visnic, senior editor at Edmunds.com. New car smell not included.

29. Make like (early) Gordon Gekko
Wall Street buyout firms KKR and Carlyle are inviting Main Street investors into private equity funds for $10,000 and $50,000, respectively. Want to play the game with less scratch? Invest $1,000 in Blackstone GroupBLACKSTONE GROUP LP, THE BX 1.4192% . Shares of the private equity giant have a 5.1% yield and a cheap P/E of 8.5, plus Blackstone is a top-notch alternative-asset firm, says Morningstar’s Stephen Ellis.

30-32. Put your donations to work where they’ll do the most good
Groups that focus on improving healthcare in the developing world have some of the best measurable outcomes of all charities, says Charlie Bresler, CEO of The Life You Can Save. Many of the supplies used to improve and save lives, like vaccines or mosquito nets, cost pennies to produce, he says, and surgeries that cost tens of thousands in the U.S. can be performed for a few hundred bucks overseas. Three great organizations working in those areas: SEVA Foundation, which works to prevent blindness; Deworm the World, which seeks to eradicate worms and other parasitic bacterial disease; Fistula foundation, which provides surgical services to women with childbirth injuries.

33. Defend the fort
An alarm system can pare as much as 20% from a homeowner’s policy, and the latest ones have neat bells and whistles. Honeywell’s LYNX Touch 7000 (starting at $500, plus $25 to $60 a month) links to four cameras that stream live video. It randomly switches on lights to make an empty home look occupied—and can detect a flood and shut down water.

34. Enjoy a buffet of entertainment
The average cable bill is expected to hit $123 a month in 2015—or $1476 a year—according to the NPD group. What if we told you you could cut the cord, redeploy $1,000 of that to getting two years worth of the following digital libraries, and still bank about 500 bucks? Yeah, we thought so.
For old movies and TV shows…get Netflix ($7.99-$8.99/month). Analysts estimate the company’s library is much larger than that of Amazon Prime.
For current TV shows…watch via Hulu ($7.99/month), which offers episodes from more than 600 shows that are currently on air.
For music…stream with Spotify Premium ($9.99/month). The premium version lets you skip commercials and listen to millions of songs even offline.
For books…read via Kindle Unlimited ($9.99/month). You can access the company’s library of more than 600,000 ebooks and audiobooks with one of its free reading apps, which work Apple, Android or Windows Phone devices.

35. Protect your heirs.
For about $1,000 you can have a will, durable power of attorney, and health care directive written up. Find an estate planner at naepc.org.

Related: 24 Things to Do With $10,000 Now
Tell Us: What Would You Do With $1,000?

TIME 2016 Election

Hillary Clinton Likes to Stay in the ‘Presidential Suite’ When She Travels

Celebrity Sightings In New York City - July 30, 2014
Hillary Clinton is seen arriving at The Carlyle Hotel on July 30, 2014 in New York City. Alessio Botticelli—GC Images/Getty Images

Amid recent scrutiny of high speaking fees

Hillary Clinton isn’t President yet, but she like staying in the presidential suite of the luxury hotels she frequents, according to a new report.

The former Secretary of State’s team lays out her travel preferences in documents obtained by the Las Vegas Review Journal ahead of a scheduled October fundraiser for the University of Nevada, Las Vegas Foundation. The documents also reveal that Clinton, who is mulling a potential 2016 presidential bid, has been guaranteed a $225,000 speaker’s fee for the event. Clinton has been under scrutiny in recent months for her lucrative speaking fees.

When she travels, the Review Journal reports, Clinton also requests that travel costs be included and that she have access to a round-trip chartered jet for her and much of her staff. She typically wants a Gulfstream 450 jet or something larger, a stay in the presidential suite of a hotel of her choice, and nearby accommodations and meals for her staff.

[Las Vegas Review Journal]

MONEY Investing

Are You On Your Way to $1 Million? Tell Us Your Story.

There are many ways to build lasting wealth. MONEY wants to hear how you're doing it.

The number of millionaires in America hit 9.6 million this year, a record high and yet another sign that the wealthy are recovering from the Great Recession, thanks in large part to stock market and real estate gains.

Are you on target to join their ranks? Are you taking steps—through your savings, your career decisions, your investments, or your rental properties—to make sure that by the time you retire your net worth will be in the seven figures? MONEY wants to hear your story.

Related: Where Are You On the Road to Wealth?

There are many paths to that kind of wealth, and they don’t necessarily involve a sudden windfall, a big head start, or a six-figure salary. You can build up a million or more in assets through steady saving, a sensible approach to investing, modest real estate holdings, or a winning small business idea. Are you finding ways to boost your savings at certain point of your life, like when the kids are out of school or the mortgage is paid up? Are you planning to take more or fewer risks with your investments as you near retirement? And if you invest in real estate, do you find that owning even one or two rental properties is enough to achieve prosperity?

Got a story like this to share? Use the confidential form below to tell us a bit about what you’re doing right, plus let us know where you’re from, what you do for a living, and how old you are. We won’t use your story unless we speak with you first.

MONEY The Economy

Wealth Inequality Doubled Over Last 10 Years, Study Finds

An analysis by researchers at the University of Michigan shows a drastic increase in wealth inequality since 2003.

A new study finds wealth inequality among U.S. households has nearly doubled over the past decade.

The analysis, performed by researchers at the University of Michigan, shows households in the 95th percentile of net worth had 13 times the wealth of the median household in 2003. By 2013, this disparity had increased almost twofold, with the wealthiest 5% of Americans holding 24 times that of the median.

In dollars terms, the median wealth of a US household was $87,992 in 2003, and by 2013 had decreased 36% to $56,335. In contrast, the richest 10% actually saw their net worth increase from 2003 to 2013, with the highest gains going to the top 5%. The median wealth of the households in the top five percent grew over 12% during the same time period, from $1,192,639 to $1,364,834.

The study also shows similar wealth inequality growth between median and poor households. In 2013, the 50th percentile held 17.6 times the wealth of the least wealthy 25%—over twice the disparity found in 2003.

A principal reason for the rapid increase in wealth disparity over the last 10 years is the different ways various economic groups invest their money. According to the study’s lead author, Fabian T. Pfeffer, more than half of the median household’s wealth in 2007 was in home equity. By comparison, the median household in the richest 5th percentile held only 16% of their wealth in home equity, with the lion’s share being kept in real assets, including business assets (49%) and financial instruments like stocks and bonds (25%).

Pfeffer explains that because stocks have recovered more quickly than the real estate market—the S&P reached its pre-recession high in March of 2013, while home prices are still far from their 2006 peak—average households were hurt far more than richer Americans when the housing bubble popped. When home equity is excluded from household wealth, the impact of the housing crash on average Americans is especially clear. A median household’s total net worth declined by $42,000 between 2007 and 2013, but their wealth held in non-real estate assets declined by only $6,900. The Great Recession’s disproportionate impact on real estate allowed the richest households, who could afford to diversify their investments, to grow wealth even during a deflating housing market.

Source: YCharts

Another concern for middle class households is that many sold off investments during the recession in order meet expenses, and are now less able to enjoy the benefits of a recovering economy. “Part of the lack of recovery is that they [median American households] had to divest,” says Pfeffer. “The troubles will stay with them for the next couple of decades as they try to reclaim these assets.”

Will wealth inequality continue to increase at its current pace? Pfeffer believes it would take another deep recession for inequality to double again in the next 10 years, but says his research confirms what economists like best-selling author Thomas Piketty have been saying for years: that returns to capital have been increasing at a rapid pace over the last century, creating a persistently swelling gap between the wealth of the haves and the have-nots. “I don’t see many hopefully signs that we’re going to get back to where we were 10 years ago,” Pfeffer says.

Some have claimed inequality is less important as long as all Americans see wealth gains over time. The rich may get richer faster, but that might not matter if the poor and middle class are also seeing their wealth increase. Pfeffer disagrees. A rising tide may lift all boats, but the Michigan professor points out that wealth not only tends to determine political influence, but also that wealth inequality greatly affects the opportunities available to the children of the middle class, especially in terms of education. “The further families pull apart [in net worth], the more disparate the opportunities become for their offspring,” he says.

TIME 2016 Election

Bill Clinton: Hillary Is ‘Not Out of Touch’

Bill Clinton
Former President Bill Clinton listens during a session of the annual gathering of the Clinton Global Initiative America in Denver on June 24, 2014 Brennan Linsley—AP

The former President said his wife is "not out of touch," after she came under fire for minimizing their wealth in recent interviews

Former President Bill Clinton defended his wife’s recent comments about their family’s wealth Tuesday in an interview at the Clinton Global Initiative America conference.

Former Secretary of State Hillary Clinton has come under fire from Republicans and some Democrats for minimizing their wealth in recent interviews in promotion of her new book. Hillary Clinton said earlier this month she and her husband were “dead broke” when they left the White House in 2001, and in an interview with the Guardian newspaper published last weekend, Clinton implied she was not among the “truly well-off,” despite more than $100 million that the former President has collected from speaking engagements alone.

The criticisms are undercutting Hillary Clinton’s efforts to highlight populist economic issues in preparation for a possible presidential campaign and lending to an image that she can’t relate to average Americans.

The former President told NBC News’ David Gregory he was not surprised the subject of their wealth came up, suggesting it was an effort by Republicans to “change the subject.”

“It is factually true that we were several million dollars in debt,” Bill Clinton said in an interview airing this week on Meet the Press, in reference to the millions in legal fees they racked up in the White House. “Everybody now assumes that what happened in the intervening years was automatic; I’m shocked that it’s happened. I’m shocked that people still want me to come give talks.”

With his wife and daughter looking on, Bill Clinton asserted that they do normal things in the tiny New York suburb of Chappaqua, the location of one of their two homes.

“The idea that now, after — I think I had the lowest net worth of any American President in the 20th century when I took office, but I still could have been tone-deaf,” said Clinton. “And, you know, now I don’t, and we’ve got a good life, and I’m grateful for it. But we go to our local grocery store on the weekend. We talk to people in our town. We know what’s going on. The real issue is if you’ve been fortunate enough to be successful, are you now out of touch and insensitive to the agonizing struggles other people are facing? That’s the real issue.”

Asked whether he could see why the potential 2016 Democratic presidential candidate’s comments were drawing accusations that she was out of touch, Bill Clinton said he could, adding “but she’s not out of touch.”

“She advocated and worked as a Senator for things that were good for ordinary people,” he continued. “And before that, all her life. And the people asking her questions should put this into some sort of context.”

Hillary Clinton’s remarks on wealth have evoked comparisons to former Republican presidential nominee Mitt Romney. On Monday, potential 2016 rival Vice President Joe Biden highlighted his relatively meager finances at an event on working families, but called himself fortunate regardless.

Watch the video of the exchange below:

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