The 2023 median household data was released shortly after I filmed this video, showing a median value of $519,700 compared to the average of $979,236. This aligns with my prediction in the video, as the median is about half of the average! (I've linked to average net worth data source in the replies here) Do you know what your current net worth is? If not, consider tracking it with my Net Worth Tracker for Canadians that I built. You can use the results to help motivate, organize, plan, and achieve your financial goals. Download it here ➡: blueprintfinancial.ca/net-worth-tracker-free-download
Data source for average household net worth (You'll have to play around with the filters to pull the data you want): www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610066001&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=2.3&pickMembers%5B2%5D=3.1&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=2024&cubeTimeFrame.endMonth=04&cubeTimeFrame.endYear=2024&referencePeriods=20240101%2C20240401
When comparing net worth internationally, you might have to tease out the effects of publicly-held investments. In Canada, the NPV of your CPP isn't included in net worth. In Australia, the superannuation fund (employer-made contributions are compulsory, but the funds belong to the individual) balance is probably included in your net worth figures.
Among my friends - who are all middle aged - I see households earning $200-400K but net worth close to zero. The cost of living in the major cities, whether it’s daycare, rent, or a high mortgage, erases the ability to accumulate financial assets. The game is over for a large tranche of Canadians who, in the United States or many European countries, would be far better able to accumulate assets given their high skill level.
if they pay mortgage, they will have equity in their home. which is a big part of net worth and helps explaining shown in the video. joint income below 200k is where the family would struggle to accumulate wealth in lots of Canadian cities.
My question is, is a the value of a DB pension included in net worth. I contributed to a company pension for 30 years. These contributions do not appear in my portfolio but to discount the value of a lifetime annuity I think would be undercounting one’s net worth.
Great question! Yes, your DB pension should definitely be part of your net worth. It’s an asset that generates lifetime income (provided the company doesn't fail or the pension is underfunded), like an annuity. Estimating its present value (PV) can be tricky though, but looking at current annuity market rates might help you get a ballpark figure of what to add to your net worth
@ my ‘company’ is the Government of Canada, so I’m reasonably confident in its long term viability. Before retiring in ‘21, I had a present value analysis of my pension done ($1.6M). I was pleased with the results.
@@22mrwright I agree, these numbers feel extremely high lol. I make a very very good salary and at 35 I barely match the "average" for my age group.. They'd make sense for a household considering the house is owned by you and someone else so its not an individuals net worth.
I totally agree with your advice to establish and pursue your own personal goals, rather than base your goals on comparisons to others, a pitfall known as “keeping up with the Joneses.” And while money is important, wealth should not be your primary goal in life. Your first goal should be good health because if you are in poor health, you may not be able to achieve your other goals. Your second goal should be happiness. You don’t need a high standard of living to have a high quality of life. Yes, you need to be able to take care of your basic current and future needs without too much stress or worry, but the accumulation of more and more wealth should not be your primary goal. You have one life on this Earth (unless you are Hindu), you should focus on making the most of that life. Money is an enabler not the goal.
I think it is less about owning a home and more about the use of leverage you implement when you purchase real estate. What if you had $200k for a $1 million home. BUT instead of buy a home you take the $800k the bank gives you and stick it in the market for 25 years Non-homeowners do not have the option of that level of leverage (and be protected by insurance 😅)
Sure, that works in an up market, so whoever bought a house in the past couple decades is doing well now! But it cuts both ways, and it will hurt if growth stalls of even declines for many homeowners.
@@Blueprint.Financial Kahn was always attempting to be seen as more Successful than his friends and neighbours despite the fact they didn’t care. He would compete with them despite the fact no one cared. Just do well for yourself and family . Measuring yourself against others is a type of insecure thinking. I have learned that if you only compete with yourself you never lose and avoid any unnecessary resentment from others who would rather not participate in a dick measuring contest. Hope that explains my previous comment
To roughly estimate your DB pension value, multiply your annual pension by 15 to 25, check your statement for the commuted value, or use an online DB pension calculator.
I would be much more interested in net income by age... Net worth is skewed by real estate and muddied by invisible factors like hidden or offshore wealth.
ah good point - check it out here, you have to play around with all the filters to get the data you need: www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610066001&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=2.3&pickMembers%5B2%5D=3.1&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=2024&cubeTimeFrame.endMonth=04&cubeTimeFrame.endYear=2024&referencePeriods=20240101%2C20240401
Why did StatsCan stop reporting median net worth? It's a far better representation, and a standard in statistics. You'd think an org named Statistics Canada would report statistics...
Great video and infographics. Makes one wonder why Stats Canada stopped reporting median income...perhaps numbers were looking too dismal on a worldwide scale? I'm personally not a fan of RRSPS, which tries to sell you on the likelihood that you'll be paying lower taxes on the withdrawals in your senior years - based on the premise that you'll be earning less!! Sorry...I strive to earn MORE by then, not clip coupons and cease travelling so that I can feed myself on my amputated income. EDIT: Just saw your post regarding StatsCan's recent disclosure of median income. Yes, dismal indeed. Great estimate on your part though! 👍
Thanks for the kind comments! For the RRSP, the main benefit is the tax deferral, regardless of what expected tax rates are. If you're choosing non-registered accounts before your RRSP for your retirement funds, I would strongly reconsider using the RRSP first. (I go into the ideal order of investments in another video of mine on the channel.) I checked out your channel too, I don't know anything about plumbing but you seem like a good guy!
@Blueprint.Financial Yes, I acknowledge the tax-deferred growth - but that is only presuming that any chosen self-directed investments allowed within an RRSP outpace inflation in the first place. I wouldn't totally dismiss RRSPs, but I would only consider them as a last resort after I've maxed out my entire TFSA, and had extra funds to contribute to more preferred other tax-efficient investment vehicles, such as real estate income properties or a revenue-generating business. But that's just my preference; I don't knock RRSPs for someone who wants to simply reduce their current T4 tax burden and expects a lower income at retirement. For those folks, simply throwing it in a sheltered S&P or TSX index fund might be all they need. 😊 Will definitely check out your video nonethess. Keep producing great content! 👍
Makes total sense! Yes I love investing in my businesses also, it seems like we are both entrepreneurs at heart. Thanks for the support and encouragement, much appreciated!
Nice! My brother’s retired too and a psych major. He says boring is good because it helps reset your brain from knowing what it needed to do (work) into what it now wants to do. I retired last Aug and just finished off some long-standing projects. I’m only now feeling that life is boring and I’m excited! But I’m still on the habit of browsing LinkedIn - only social media I have. Hopefully, that’ll go away soon.
@@carloscanizares101 yeah im addicted to youtube 🤣 i dont use much of meta or the other social media tho! When my kids are adult i guess ill be able to enjoy more since ill be able to travel and have fun
@@diegonadeau2466 That is because God created humans not so they can retire (especially really early) and do nothing. We were created to serve others and will give an account for how we used our resources.
Diversifying is a big lie. Good way to stay poor. What you want to do is concentrate your capital in one or two high performing assets, like bitcoin, MSTR, or AI plays like Nvidia. Forget bonds.
The 2023 median household data was released shortly after I filmed this video, showing a median value of $519,700 compared to the average of $979,236. This aligns with my prediction in the video, as the median is about half of the average! (I've linked to average net worth data source in the replies here)
Do you know what your current net worth is? If not, consider tracking it with my Net Worth Tracker for Canadians that I built. You can use the results to help motivate, organize, plan, and achieve your financial goals.
Download it here ➡: blueprintfinancial.ca/net-worth-tracker-free-download
Thanks for this. I think that looking at median data is more accurate.
Billionaires skew the averages, median unattached net worths looks abysmal in comparison
@@TheNewSchoolGamer Yes, I address this in the video!
Data source for average household net worth (You'll have to play around with the filters to pull the data you want): www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610066001&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=2.3&pickMembers%5B2%5D=3.1&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=2024&cubeTimeFrame.endMonth=04&cubeTimeFrame.endYear=2024&referencePeriods=20240101%2C20240401
When comparing net worth internationally, you might have to tease out the effects of publicly-held investments. In Canada, the NPV of your CPP isn't included in net worth. In Australia, the superannuation fund (employer-made contributions are compulsory, but the funds belong to the individual) balance is probably included in your net worth figures.
the data is by household, not by person. Also some houses have like 20 people living there especially among indian communities
This is so far the best video I have seen on this topic! Thank you for the effort to put it together!
This one did take me awhile to compile all the stats, so thanks for appreciating the effort!
@ My pleasure, I created some content too, so I know what it takes lol. Kudos to you!
Among my friends - who are all middle aged - I see households earning $200-400K but net worth close to zero. The cost of living in the major cities, whether it’s daycare, rent, or a high mortgage, erases the ability to accumulate financial assets. The game is over for a large tranche of Canadians who, in the United States or many European countries, would be far better able to accumulate assets given their high skill level.
Yes, I agree that Canada faces a lot of challenges in the coming years. Let's hope we can overcome these problems.
if they pay mortgage, they will have equity in their home. which is a big part of net worth and helps explaining shown in the video. joint income below 200k is where the family would struggle to accumulate wealth in lots of Canadian cities.
Great video, earned a subscriber!
Thanks Donald! I appreciate your support
My question is, is a the value of a DB pension included in net worth. I contributed to a company pension for 30 years. These contributions do not appear in my portfolio but to discount the value of a lifetime annuity I think would be undercounting one’s net worth.
Great question! Yes, your DB pension should definitely be part of your net worth. It’s an asset that generates lifetime income (provided the company doesn't fail or the pension is underfunded), like an annuity. Estimating its present value (PV) can be tricky though, but looking at current annuity market rates might help you get a ballpark figure of what to add to your net worth
@ my ‘company’ is the Government of Canada, so I’m reasonably confident in its long term viability. Before retiring in ‘21, I had a present value analysis of my pension done ($1.6M). I was pleased with the results.
I don't think I know anyone under 35 with a net worth of 337k, what is this net worth based of?
@@22mrwright I agree, these numbers feel extremely high lol. I make a very very good salary and at 35 I barely match the "average" for my age group.. They'd make sense for a household considering the house is owned by you and someone else so its not an individuals net worth.
@@matthewminogue3276 check out the 4th section of this video, where i got over net worth as per household type
A Canadians net worth is mainly based on when and where in the country you bought real estate. End of story.
From a statistic I read :50% of net worth in Canada is from real estate, so yes... It's true. Is it a bubble? Yes.
Unless you bought it in Alberta in which case your net worth would be less than the net worth of a renter in Alberta at the same age.
The love from my wife and kids makes me the richest man in the world
That was very heartwarming, thank you! Yes, net worth are just numbers at the end of the day.
You can’t buy that. Except maybe Japan.
@@martinpowell5147 Japan houses are cheap like omg cheap
Good. Hopefully she doesn’t divorce u. U will have no love and no money
Awwwww
The numbers in the under 35 category seem way too high.
Keep in mind this is household data, and also see my pinned comment on the median data!
I’m 51 yrs old with 9yrs left before I retire, dual income making over $200K/yr with no debt and $2M net worth…good to know where I stand!
Congrats, you and your partner are doing amazingly well!
What are you waiting for? Hopefully you are taking time off to travel and enjoy life while you are younger
My brother rents and is worth almost a billion dollars at age 63. I'm worth about half that.
I don’t compare myself to my friends. And with all honesty I don’t care. I march to my own drums.
Yes, i mention this near the end, to focus on improving yourself and to not worry about the rest!
Even if net worth is negative
I totally agree with your advice to establish and pursue your own personal goals, rather than base your goals on comparisons to others, a pitfall known as “keeping up with the Joneses.” And while money is important, wealth should not be your primary goal in life. Your first goal should be good health because if you are in poor health, you may not be able to achieve your other goals. Your second goal should be happiness. You don’t need a high standard of living to have a high quality of life. Yes, you need to be able to take care of your basic current and future needs without too much stress or worry, but the accumulation of more and more wealth should not be your primary goal. You have one life on this Earth (unless you are Hindu), you should focus on making the most of that life. Money is an enabler not the goal.
Exactly, it took me a long time to learn these lessons, but once I did it was a game-changer for me!
I remember living high in 2016 making 35k a year ... Wha happened?
Trudope
I sold my house in Ontario and we are leaving the country. Maybe we will be back if the country ever turns around but not likely.
Best of luck with your new journey!
Real estate prices and the Canadian dollar can only move lower in the coming years. A smart move on your part.
I think it is less about owning a home and more about the use of leverage you implement when you purchase real estate. What if you had $200k for a $1 million home.
BUT instead of buy a home you take the $800k the bank gives you and stick it in the market for 25 years
Non-homeowners do not have the option of that level of leverage (and be protected by insurance 😅)
Sure, that works in an up market, so whoever bought a house in the past couple decades is doing well now! But it cuts both ways, and it will hurt if growth stalls of even declines for many homeowners.
3x or 4x ETFs.... hehe
That only works in bull market like OP says above. Physical assets that dont depreciate is the best low risk investment, junior.
did Kahn from king of the hill come up with the title of this video?
not sure i understand the reference, but sounds funny
@@Blueprint.Financial Kahn was always attempting to be seen as more Successful than his friends and neighbours despite the fact they didn’t care. He would compete with them despite the fact no one cared. Just do well for yourself and family . Measuring yourself against others is a type of insecure thinking. I have learned that if you only compete with yourself you never lose and avoid any unnecessary resentment from others who would rather not participate in a dick measuring contest. Hope that explains my previous comment
Can you explain how to calculate a Defined benefit pension value?😊
To roughly estimate your DB pension value, multiply your annual pension by 15 to 25, check your statement for the commuted value, or use an online DB pension calculator.
Where are you getting these numbers from? Source please, thank you.
see the pinned comment replies
I am in a way better health than all my friends. Funny thing is, they are all making more money than me. Question is who is really richer.
Well said, sir! I agree, health is the most valuable resource of all (and time!)
Thank you for this video. One question - are these pre-tax numbers for Canadians? Cheers
Net worth is your assets minus liabilities, so it is always after tax. (You might be confusing it with income?)
I would be much more interested in net income by age... Net worth is skewed by real estate and muddied by invisible factors like hidden or offshore wealth.
I go over this in my "average income in canada" video on my channel so check it out!
post the datasource link next time dude. would be super helpful! Thanks for the informative video
ah good point - check it out here, you have to play around with all the filters to get the data you need: www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610066001&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=2.3&pickMembers%5B2%5D=3.1&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=2024&cubeTimeFrame.endMonth=04&cubeTimeFrame.endYear=2024&referencePeriods=20240101%2C20240401
Yup, would love to follow up and learn more about the data source of this
Why did StatsCan stop reporting median net worth? It's a far better representation, and a standard in statistics. You'd think an org named Statistics Canada would report statistics...
See my pinned comment, they just released 2023 median net worth data! after not releasing it for 4 years.
Never mind quartiles…
Excellent
Thank you! Cheers!
I just bought a bunch of Nvidia stock, maybe I'll be rich one day!!!
If you have good friends you are rich.
Great video and infographics. Makes one wonder why Stats Canada stopped reporting median income...perhaps numbers were looking too dismal on a worldwide scale?
I'm personally not a fan of RRSPS, which tries to sell you on the likelihood that you'll be paying lower taxes on the withdrawals in your senior years - based on the premise that you'll be earning less!!
Sorry...I strive to earn MORE by then, not clip coupons and cease travelling so that I can feed myself on my amputated income.
EDIT: Just saw your post regarding StatsCan's recent disclosure of median income. Yes, dismal indeed. Great estimate on your part though! 👍
Thanks for the kind comments! For the RRSP, the main benefit is the tax deferral, regardless of what expected tax rates are. If you're choosing non-registered accounts before your RRSP for your retirement funds, I would strongly reconsider using the RRSP first. (I go into the ideal order of investments in another video of mine on the channel.)
I checked out your channel too, I don't know anything about plumbing but you seem like a good guy!
@Blueprint.Financial Yes, I acknowledge the tax-deferred growth - but that is only presuming that any chosen self-directed investments allowed within an RRSP outpace inflation in the first place. I wouldn't totally dismiss RRSPs, but I would only consider them as a last resort after I've maxed out my entire TFSA, and had extra funds to contribute to more preferred other tax-efficient investment vehicles, such as real estate income properties or a revenue-generating business. But that's just my preference; I don't knock RRSPs for someone who wants to simply reduce their current T4 tax burden and expects a lower income at retirement. For those folks, simply throwing it in a sheltered S&P or TSX index fund might be all they need. 😊
Will definitely check out your video nonethess. Keep producing great content! 👍
Makes total sense! Yes I love investing in my businesses also, it seems like we are both entrepreneurs at heart. Thanks for the support and encouragement, much appreciated!
$1 million net worth just to be average. Time to go to the foodbank
yes it's a strange timeline we live in!
Nope. Not Broke. 7 figure diversified portfolio. Mac & cheese again. 😊
Still have my hockey skates and stick. Life is good 😊 🇨🇦
Lol typical canadian
@
Exactly! 💰 🏒
Basically, I’m cooked. Thanks 😫
I’m 42, retired and don’t have any friends. I guess I’m doing well.
im 38 retired and the only social i have is at the gym! Didnt think retirement was so boring
Nice!
My brother’s retired too and a psych major. He says boring is good because it helps reset your brain from knowing what it needed to do (work) into what it now wants to do.
I retired last Aug and just finished off some long-standing projects. I’m only now feeling that life is boring and I’m excited!
But I’m still on the habit of browsing LinkedIn - only social media I have. Hopefully, that’ll go away soon.
@@carloscanizares101 yeah im addicted to youtube 🤣 i dont use much of meta or the other social media tho! When my kids are adult i guess ill be able to enjoy more since ill be able to travel and have fun
@@diegonadeau2466 That is because God created humans not so they can retire (especially really early) and do nothing. We were created to serve others and will give an account for how we used our resources.
Diversifying is a big lie. Good way to stay poor. What you want to do is concentrate your capital in one or two high performing assets, like bitcoin, MSTR, or AI plays like Nvidia. Forget bonds.
Richer in what? Fiat Debt based currency? pffft lol
Geeez i have $130k saved up at 30, with an annual salary of $110k. Thanks for making me feel like a massive loser 😂
Keep in mind these are averages, not medians, and for households as well, I'm pretty sure you're ahead of the curve still!