Wife and I went from dating and negative net worth to married with two kids and positive net worth in 3 years. Keep marching, stay focused, stay disciplined.
Being in my mid 70’s and retired 10 years we make more in dividends and interest each year than we ever made in wages any year. Keep investing throughout your life, be consistent and you will be fine.
Yeah, that's the way to go. Who cares about NII and IRMAA - take you gigantic income, pay your taxes, and you can live like a king. People don't believe saving and investing works, but over 40 or 50 years, it sure does.
@@vinyl1Earthlink Indeed, I have seen the magic of compounding. Just stay consistent and live within your means, save and invest 10 to 25%. The other part is to eat right and exercise, to stay healthy as you can.
There is something magic about that $100,000 milepost. Yes, you can see the impact of compound interest, but the psychological boost of hitting that 6 figures is enormous.
I came to the US at 18 with $0. Put myself through college, start my full time job at age of 26 with negative $15k. Stop working at 49. Today I’m in my late 50s, net worth over 5m. I can’t say I’m frugal, I got myself a supercar of my dream, and had traveled with my family to over 50 countries. I also donates $300 a month to an education fund to someone who needed. All of these because investing had got me today. Special thank for channels like Erin to inspire and informative for all!
from another immigrant, arrived in the US in 1993 at 27y/o 0 networth , retired at 55 in 2021. currently 57. started investing 27 yrs ago and had a good paying job. made it to 97 percentile in investable assets NW but only driving a honda. we are relatively frugal but comfortable. we attained our american dream.
@@Random-ld6wg congratulations! That’s sounds awesome! And great to hear your story, and also an immigrant. Me too, I stop working at 50. And do the things that I like and take care my kid all through school, now in college. I feel so grateful investing early and be consistent. Wish you have a wonderful holiday and happy 2024!
Great video Erin. I have been retired for 2 years now and I am still saving 25% of my retirement income, which is my wife’s social security as a survivor benefit and an annuity I bought with the lump sum of my defined benefits pension. I bought an immediate annuity a couple of months ago when the interest rates were significantly higher than when I retired. It gave me more flexibility as to the monthly payments than my company’s pension did. I will switch to my social security when I turn 70 in 3 years. You are absolutely correct, being a dedicated saver for over 40 years made it very difficult for me to not keep saving even in retirement. I don’t feel that I am depriving myself of anything so I will probably keep saving all the way up to the end.
My net worth is the median for the group which is two decades older than me. I am content with that. I am not stopping my investments or savings, but I also am not comparing myself to the top percentiles.
Age 27: -$120k nw Age 28: $0 nw (I was so happy to be officially worthless) Age 29: $100k net worth Still have to knock out $25k in 4% student loans and have $10k on a 0.9% car loan, but I feel like we’re finally starting to see real progress. Thanks for your insightful and helpful videos! Happy New Year!
55 retired with 7 rentals and a small house, single, two awesome kids. Now gonna buy a small motor yacht and live my best life. Seen to many people pass away before they could do what they want. Don’t wait to long imo. Life is short…. Enjoy it while you still can. Just my thoughts, wishing everyone the very best that life has to offer.
Just curious as to what kind of a small motor yacht you are considering buying? I am retired at 60, and my dream has always been to get a small cruiser, but I haven’t even started to consider options.
I reached my number in 2023 at the age of 54. Right now it's an insurance plan as I plan to work until age 60 then reevaluate. This will allow me to fund my two sons as they go through college and save even more. I will likely work part time until 65. Gradual decreasing hours at work will allow me to concentrate on health and hobbies so I don't retire to boredom.
From my perspective (in my 50s), it's important to communicate that much of the growth during the 40s, 50s, and beyond will be due to investment gains of money previously saved. If the market returns 10%, that's a $10,000 gain on a $100,000 portfolio, and a $50,000 gain on a $500,000 portfolio. At some point, those investment gains may exceed what someone is contributing every year.
We felt comfortable during our 20s and 30s and it truly seems in our 40s is when our net worth exploded overnight! Though maybe I was busy working in the office my whole career and not until 2020 at age 43 and working at home I finally took the time to analyze our finances in closer detail.
in the 2-3 yrs before the pandemic, had annual gains of 2-3 times of my annual salary in NW with 30-40% of gross income invested per year. so the growth was mainly from compounding of market returns and getting good returns on some individual stocks. since retirement 2.5 yrs ago and drawing down assets and no money c0ming in, portfolio is up in retirement slightly more than 2 times my highest salary.
I agree, and I would add that with compound interest your gains will be even greater than the numbers you provided - as you are always earning interest on your interest as well.
That's great. I'm 37 and was in that same boat. We started putting 10-15% away in a brokerage account as well, so we will have some money for early retirement. I also max out my HSA because it can pay for insurance premiums before medicare kicks in. Or you can just work until 65 and be filthy rich, but I figure I'd rather retire early with 10-15M than work longer for 20-25M.
It can be tough for couples to get on the same page with spending. The saver/investor in the relationship will follow a budget and the free spirit/spender will ignore it. Pay yourself first is the best strategy IMHO.
Agreed! My wife is the spender, so I just have it set up to invest an agreed upon amount automatically out of our paychecks. We do our budget together monthly, so she knows if the savings dips below our emergency fund amount, then it's time to slow down on the spending for a couple months. Right now we are in the yellow because we just paid for a years worth of tuition up front to get a 5% discount, and we paid in full for a vacation that's 3 months away. So we are going to cut unnecessary expenses for a couple months to build our cash reserves back up. We do 1/3 taxes, 1/3 investing, and then 1/3 we live on.
Just turned 40, spouse is 38. Our NW (including house) is $1.1M. We grew up with little, so our family just lives easily under our means. Vacations on a reasonable budget, shop at Aldi/Walmart, etc. I drove a 15 year old car until we crossed $1M. Now I drive a seven year old car, haha. Nothing glamorous, just slow and steady growth.
I’m starting out in the negative this year thanks to student loans, but if things go as planned, I should cross into positive mid 2024 and have full emergency fund from there. After that it’ll be 2-3 years to hit 100k invested and I’m not doing any extra spending until that happens.
Hang in there regarding those student loans. I paid mine off, month by month, for several years. It taught me about frugality and budgeting. Now, 20 or 25 years later, I'm that much better off for having learned those habits. Good luck!
@@TimIsThankful I’m lucky that all my loans are federal loans taken out while interest rates were low. I’ll just be following the standard payment plan and focusing on investing. I don’t understand the fear given how borrower friendly the government is.
Erin, I've been watching your videos almost from the start. I find the information you give timely and VERY worthwhile. I understand this year has had it's challenges for you and your family with the baby coming early and some of the challenges that made for you and your family. I wish you and your small family nothing but the best now and in the coming years. I hope I didn't miss this message if you already made it, but if you don't mind, how is the baby doing? Is everything 'normal'? Thank your husband for his service in the arm forces and his sacrifice. Again, best wishes, Merry Christmas and a Happy New Year!
Hey Rick!! I’ve seen your name in the comments section for a very long time 😊thanks for sticking with me! Baby and I are doing great, thanks so much for asking - make sure to watch the video this coming Monday, baby J and my husband Steve will be making an appearance
I know the data would be hard to find, but I would be curious to see the new car sales transaction prices for these age groups. My theory is that the most expensive cars are not actually driven by the highest income and highest net worth individuals. In most cases, I think it’s the opposite.
You are absolutely correct. Most of my family/1st cousins are close to me in age (62-70). We are all in the 90th percentile, but all of us drive used vehicles, and live in modest homes.
Oh wow, thank you for clarifying that the numbers *included the value of people's homes* Very Important caveat for some of us !! I am doing much better than I thought since I didn't include it!
Then you weren't calculating net worth. It's infuriating how many people don't include their home in their "net worth" calculation. People should stop using net worth if they literally don't know wtf it is.
I don't own a home, nor do I rent. Not everyone's situation is cut & dry and no I'm not going to explain how that's possible to a narrow-minded dish*t like you.@@robloxvids2233
Excellent insights to go along with those charts. Your are wise beyond your age Erin. As you state, being disclpline in paying your self first while lliving well within your means will pave the way to a good retirement. Merry Christmas and best wishes for a healthy and happy new year.
I came to US at my age of 21 with $15k net worth, finished my part time 4 year college in age of 29 with zero student loan and got myself full time self-employed. I am around top10 percent on my age of 45. Could be better... Just have to live below your mean, find a life partner with similar values, minimize social circle, delay gratification, and try not to make critical financial mistake.
@@AusValue well. Saving/investing 50% or so for years on end helps. We never go out to eat, rarely take vacation where we're not just staying with family, own a rental. It certainly didn't just happen.
I'm glad you explained that this data comes out once every 3 years. Soo many TH-camrs put this video out annually. It's a shame that they must be making up random numbers. The things people will do for clicks…
I wonder if there is some type of formula or balancing to compare a single person's net worth to a couples. Or if they are a couple just divide net worth by 2?
Spot on about it being hard to go from a life long saver to a "spender" funding your retirement with your investments. I just turned 60 and was planning on retiring at 62, but a few years ago went through cancer diagnosis/treatment that changed perspective a bit. Now looking to retire by June this year so I can enjoy my health for how ever long I have it. All the models (NewRetirement, Fidelity, Honest Money, fee only financial review...) have us at 99% success rate of funding retirement - but still freaked out to pull the trigger even though intellectually I know life can be short. The means are there, we are in the 10% bracket according to these charts along with pensions (super fortunate). It's the shifting gears from saver to "spender" that is so emotionally difficult to wrap my head around.
Important to note that the 0 to 25th percentile are all in debt with negative net worth. Pretty mind blowing that you can live in a country with so many opportunities and still be in major debt.
My wife and I paid as we went through college and we're able to graduate debt free. Then we started our careers and started putting money in our yearly Roth amount and putting what our employer would match in the 401k accounts. We just turned 40 this year and just became millionaires. We just started making $100k per year combined. So I know anyone can be a millionaire. Just comes down to persistence!
I don't understand why we don't use averages that exclude the ends of the bell curve. I've never seen that done anywhere. Remove the 2.5% on either end of the bell curve then create averages, I think that would be a sweet way to look at average things without skewing things tremendously. Median is good too.
I think that they should do net worth divided by annual net income. That gives a more realistic idea of how much someone is saving and how they need for a comfortable lifestyle.
Actually the amount of $ the people have available is likely considerably less than the figures shown. For homeowners, a lot of their net worth may be tied up in the home.
Net worth including the house/home can be a very skewed measure for those in areas where property prices have sky rocketed in the past couple of decades. Unless you are willing to leave your home and move to a much cheaper area. I think a consideration of how much of the net worth is equity built in the home and if you’d be willing to liquidate that at some point is appropriate.
exactly. it's actually a liability for me personally. since i have no plans of selling, i am stuck with much higher property taxes every year. net worth is higher but it also decreases my disposable income to invest.
Really interesting to see the numbers. UK here so a slight stretch on the red across. We started late but going quite hard, 36m and 34f with about £450K currently. I think we're closing in on the 90th percentile, and although we'll almost certainly never get to the 99th percentile, for us it's just about keeping focused and contributing over the next couple of decades, and we should have a great retirement.
Hi Erin. My primary residence is paid off but I dont include it as part as my net worth unless I decide to sell. Otherwise personally I use my investments like to use stocks, dividends and rental income properties to measure net worth. I like using cash flow investments.
@@bryan8638 in California, most homeowners are millionaires. But it’s basically dead money. My personal investments excluding my primary home is producing cash flow to fund my lifestyle. But overall, on paper a house is an asset.
This kind of thinking is silly. It's still an asset that you have that you could sell. Clearly your net worth would be higher than a hypothetical you in a parallel universe who lives in the same house with a mortgage or rental agreement. Imagine three versions of you, owning, mortgaged, and renting the same $200k house. Does it really make sense for the renter and owner to both be at +$0 NW, and the mortgaged version to be at -$200k due to the mortgage? I wouldn't necessarily consider the house a financial investment, or use it for cash flow calculations, but it is a valuable asset you own.
Not including your home is a good idea for your planning. While it does not match the formula most of these statistics are based on, it is a truer picture of the assets you have easy access to when making investment decisions, without a change in lifestyle.
Thanks for doing this video. You correctly point out the value of investing early. The key is thinking ahead when planning things. Do you really need to go on that expensive vacation with little children? I they are under 10 or so they likely will not remember that much. Better to save some money and put into investments. That can make it easier to give them a great education that will pay lifelong dividends and give you a nice cushion in your investments.
My wife and I are about to cross the 100k mark at 26. Except it’ll drop 40k once she gets out of school. But it’s still exciting to at least cross the mark soon!
Two unrelated topics: Average net worth and Are you on track are two different things. The median 65 -69 year old with $393,480 in net worth is not on track for retirement. That may mean their home is close to being paid off. They only need 5 to 10 more years to pay off the the home with zero saved for retirement. Or more likely, they have half of it in a retirement account and a mortgage to be paid for the next 20 years (until they are 85-89). Americans need to wake up. The people that retired a decade ago with this level of savings had a pension to fall back on. They did fine. Someone with less than a million saved when they start retirement and plan to primarily retire on social security will need to work at Home Depot to make ends meet. We need more videos about the true cost of living in our senior years, the calculation of how much we can expect from Social Security, how much we need to have saved before retiring and how to get there. My example above of a million, may be high or it may be way too low. That is what we need to figure out to know if we are on track.
How do you consider pensions? Interestingly very few TH-cam experts bring this up. Ironically, a majority surveyed believe it should be included in net worth
I'm no expert, but I include my portion of my pension in my net worth (i contribute 6.5% while my employer contributes 7.5%). I can log in and see what the balance is. It appears to be accumulating interest at around 3% annually, too. That is the portion I could take and run if I decided to back out of the pension.
Those average net worths per percentile are a bit less useful than borderlines for how much you need to have in order to join a particular percentile. Now the borderline amount is something in the middle of the averages.
I’m 30, started investing in 401k when I was 27, started a Roth IRA 2 years ago so im decently late to the party. Im at 67k right now. But I am quite worried about the market lately. I was prepared to see a flat line for years and in the last month it’s just gone up incredibly. Im worried it’s too soon and we’re going to hit another cliff. I guess we’ll see what happens.
The cliff is what you want. Especially being that you are 30. The blood bath is when you can get the stocks cheap. Keep investing. Keep the ship steady. Grab your balls and buy more!
Munger said that in 1994. With inflation you have to find a way to get your hands on $207k now. Then you can let off the gas a little. That would fit with the idea that $2.2M appears to be the new benchmark.
The numbers you gave. Are they the minimal of the group or the median of the group? For example, for 60 to 64 years old, you gave about 3 million for the 90%. Does it mean one needs 3 million to reach the 90%? Or that 3 million is the median for those within 90 to 98%?
I am 52, Wife is 49. Wife will retire in Dec 2024. I cant see my self without working. I worked 2 full time jobs in my 30's. I work about 25 hours a week. Worth about 5 Million dollars.
Though the stats are for the United States and I am a Canadian, I still found them interesting. And if I were an American, I would be doing quite nicely.
I guess I'm doing fine, I'm in about the 65th percentile for my age group with a net worth of around $500K. But I should add that I'm doing it on one source of income instead of two like many married couples.
How do you account for primary residence in net worth? I've been putting in my mortgage because I'll have to pay it, but not putting in the value because I would have to move to actually see that money and I'm not sure what it would sell for. This makes my number negative, which seems wrong based on these numbers.
If most of your net worth is your primary residence it’s misleading. My brother’s net worth is 1 million of which 90% of that is the equity in his only residence in CA which he can never just convert to cash because he’d have to buy another equally expensive house in CA and his property tax would get adjusted up. He could take out a home equity loan to access the cash I guess, but you don’t want to use that on regular living expenses or investing in the market. It’s not liquid capital. His actual net worth is almost nothing, and he should not keep spending as though he was a millionaire.
When I saw that the 35-39 50th percentile was higher than the 40-44 50th percentile I was a bit shocked. Not sure what happened there but thats interesting.
Interesting that the 99th percentile doesn't grow nearly as fast as expected by age. Counting a primary dwelling in net worth may give one the warm fuzzies, but it doesn't really matter. If assets aren't generating cash-flow, they shouldn't be counted.
I'm 43 years old with a net worth of close to $3 million dollars. Worked 4 jobs and 100 hours a week sometimes during my late 20s and early 30s. I am hoping to amass $10 million dollars within 10 years. Unfortunately, I'm an ugly looking guy, so I wasn't able to attract any girls then and even now. Which makes me single. If I die, my money will go all to cancer research.
Lets be honest, when we were in our teens and 20s, most of us think that we will never reach or go beyond 30 or when we become 30 years old, life will just cease to exist and we will just magically disappear. Well I am 32 now lol. Im still alive but it really did felt that life just died after 30. Its become different, darker, harsher, and more real. Whereas before 30 life felt different.
My 401k alone puts me in the 90th percentile at age 46. My wife is also in the 90th percentile. Though we are 100% in the S&P500 and could easily lose 50%.
Its interesting that you mentioned age 57. That is my planned early retirement age which is when I'll reach 1 million so I'll take that as a sign. I reached my first 100k this year (age 44) across 3 accounts (403b, optional 403b, and Roth IRA) and it's such a relief!
If you are following the 4% withdrawal rule, you'll be living off of $40k, which would likely be the equivalent to less than $25,000 in today's dollars. Hope you're accounting for inflation!
Dang, my husband and I have 30% of our combined salary saved but student debt puts us at -30k net worth. And we have less loans than many of our peers. Student debt is way worse than anyone in high school ever wanted to admit. Wish they didn’t push it so hard on ignorant high schoolers
Are these net worths for individuals, or households? If the latter, and each household averages, say, 2.5 people, then the resultant net worth of each person would of course be less than 1/2 of the stated amounts.
"It is not what you make it is what you keep that matters" can't be right!!! You all do realize I can buy more with 1,600 than I can with 1K and more with 1K than I can with $600. I always so it is for sure what people make that matters but income is just one factor out of many!!!!!
Hi Erin, As always, I enjoy your videos. I'm currently in the 81% bracket for my age group excluding home equity and in 85% including home equity. I'm one year away from retirement and should be close to 90% with zero debt. How is guaranteed income from a pension or annuity. factor into one's net worth calculation? Obviously, it counts if you invest or save a portion of the income but is there net present value consideration for calculating net worth?
I'm 45 year old with around 30K range salary. My average total amount of monthly savings and investments is around $500~$600. Should I be more aggressive or just stay in this way until my income gets higher?
Put as much as you can away. Compounding interest is your friend. Roth IRA at your income level is also your friend. Also, shoot for investments that average 10% ROI. If you exceed this, great. If you are significantly below this number consider changing your investments.
Are all these figures for household net worth? Did they sample only married couples? Is this for the average age of the 2 working adults in the household? Are you less likely to be married at 20 years old and these are single person households? Maybe I missed it in the presentation, but these details matter in presenting the data.
Curious if this is per individual or household net worth? 500k net worth for a single person in their 30s is very different than for someone who’s married with two young kids
It survey the net worth of household, not individual net worth. Do I have correct understanding? I am confuse when it is classified by age. For a marry couple without any kid, do the number in tables multiply by two?
Interesting numbers. I'm surprised that the median net worth for people in their fifties and sixties is well under $500000. It seems like the 1 million dollar mark isn't necessary for most people to have a nice retirement. It's also reassuring because I'm in my 30s and on track to have less than $500000 saved by my sixties.
I am nowhere on track for my age at 27 as a single man, and I just feel hopeless and discouraged with negative net worth from debt and money telling me and controlling what I can and can’t do, eat or get gas, etc.
Attack high interest debt hard. Work some OT/get a second job to nail it down. Start investing once that debt is gone, continue frugal lifestyle/older cheaper Toyota cars. Do that for 10 years and you'll be well on your way. You can do this.
What I’d give to have the runway a 27 year old has again. No situation is impossible to climb out of, especially when you’re that young. Don’t give up. You have so much time to work with.
Be not in despair, young fella. Here's the remedy. First, change that "woe-it's-me" attitude. You could be and will be worth millions, if you start soon. Get another job or side hustle. If you can live somewhere paying partial or no rent, do so. You will need to change your spending habits. Which means, living on less and placing yourself on a strict spending diet. Living beneath your means, will prove advantageous. Because, it will give you more of your money to invest. Without still, having a bit of fun 😊 along the way. Secondly, educate yourself on investing. An excellent source would be,"Investing for Dummies". This is a good starter source of information, because it will give you an overview of the different types of investment vehicles and how to utilize them. Once you start viewing special interests topics, like stocks for instance, you will go outside of that reference source and begin to read other books. Utilize these sources and your smart-phone to cross-reference and become smarter. Real Estate, stocks, bonds, gold/silver and or starting or buying a business (one day perhaps) is the good Yes, multiple streams of income. This way, if one thing is not working, something else is..Look into ETFs for the time being (VTI, VOO, SCHD etc.), online high interest savings/checking accounts. The Market is crazy now. So, educate yourself, as you hold onto your cash. If you are going to experiment or start early, use very little of your money. As the Market collapses (RECESSION) and then during the onslaught of healing itself, and becomes reinvigorated , that will be a time to really get in..When people get jittery and begin to offload their stocks, that's where you come in.. Well young brother, that should give you something to think about.. One other thing, that is vitally important : Remember, money is just a tool to allow you to play, do business or otherwise, on your own terms. Let your goodness of heart define you as a person and not the things that you will obtain. Maintaining optimal balance of good mental, physical, spiritual, social and emotional constructs, will always outweigh and prove to be more useful, than any bank account. Good 🤞🏿 bruh and be well.
Wife and I went from dating and negative net worth to married with two kids and positive net worth in 3 years. Keep marching, stay focused, stay disciplined.
That’s awesome
Good work!
my dog
@@stephenk6045my dog
Being in my mid 70’s and retired 10 years we make more in dividends and interest each year than we ever made in wages any year. Keep investing throughout your life, be consistent and you will be fine.
Yeah, that's the way to go. Who cares about NII and IRMAA - take you gigantic income, pay your taxes, and you can live like a king. People don't believe saving and investing works, but over 40 or 50 years, it sure does.
You could just live off earnings and take out more on high earning years and less in low interest years@@Gabe.G_Live
@@vinyl1Earthlink Indeed, I have seen the magic of compounding. Just stay consistent and live within your means, save and invest 10 to 25%. The other part is to eat right and exercise, to stay healthy as you can.
There is something magic about that $100,000 milepost. Yes, you can see the impact of compound interest, but the psychological boost of hitting that 6 figures is enormous.
not only that, but the earning potential of that Capital has risen to about $10k per year.
I came to the US at 18 with $0. Put myself through college, start my full time job at age of 26 with negative $15k. Stop working at 49. Today I’m in my late 50s, net worth over 5m. I can’t say I’m frugal, I got myself a supercar of my dream, and had traveled with my family to over 50 countries. I also donates $300 a month to an education fund to someone who needed. All of these because investing had got me today. Special thank for channels like Erin to inspire and informative for all!
from another immigrant, arrived in the US in 1993 at 27y/o 0 networth , retired at 55 in 2021. currently 57. started investing 27 yrs ago and had a good paying job. made it to 97 percentile in investable assets NW but only driving a honda. we are relatively frugal but comfortable. we attained our american dream.
@@Random-ld6wg congratulations! That’s sounds awesome! And great to hear your story, and also an immigrant. Me too, I stop working at 50. And do the things that I like and take care my kid all through school, now in college. I feel so grateful investing early and be consistent. Wish you have a wonderful holiday and happy 2024!
@@aferrari5538 same thing my son is a sophomore in college. happy holidays!
When will we start taxing wealthy people like you so that you pay your fair share?
@@tommyboym6563 No worry, IRS did very good job on that!
I am 48 years old, my net worth is 3 million and growing fast. Stayed single my whole life, which has helped.
Damn good job . I’m on the same boat but im 37 with 340k .
I found retirement was not a difficult transition at all, as the portfolio continued to expand. The joy of watching it grow never gets old.
Great video Erin. I have been retired for 2 years now and I am still saving 25% of my retirement income, which is my wife’s social security as a survivor benefit and an annuity I bought with the lump sum of my defined benefits pension. I bought an immediate annuity a couple of months ago when the interest rates were significantly higher than when I retired. It gave me more flexibility as to the monthly payments than my company’s pension did. I will switch to my social security when I turn 70 in 3 years. You are absolutely correct, being a dedicated saver for over 40 years made it very difficult for me to not keep saving even in retirement. I don’t feel that I am depriving myself of anything so I will probably keep saving all the way up to the end.
Good point about saving even in retirement. Once you adopt the saver/investor mentality you carry it with you beyond your working years.
My net worth is the median for the group which is two decades older than me. I am content with that. I am not stopping my investments or savings, but I also am not comparing myself to the top percentiles.
Age 27: -$120k nw
Age 28: $0 nw (I was so happy to be officially worthless)
Age 29: $100k net worth
Still have to knock out $25k in 4% student loans and have $10k on a 0.9% car loan, but I feel like we’re finally starting to see real progress.
Thanks for your insightful and helpful videos! Happy New Year!
55 retired with 7 rentals and a small house, single, two awesome kids. Now gonna buy a small motor yacht and live my best life. Seen to many people pass away before they could do what they want. Don’t wait to long imo. Life is short…. Enjoy it while you still can. Just my thoughts, wishing everyone the very best that life has to offer.
Just curious as to what kind of a small motor yacht you are considering buying? I am retired at 60, and my dream has always been to get a small cruiser, but I haven’t even started to consider options.
I'm 37 with a networth of $268k. I wish i would've started investing in my 20's. 😢
I started at 19. I'm 23 now and I wish I started 2-3 years earlier!
@mvloz113 wow! That's awesome. You're going to be so far ahead by the time you're my age.
I reached my number in 2023 at the age of 54. Right now it's an insurance plan as I plan to work until age 60 then reevaluate. This will allow me to fund my two sons as they go through college and save even more. I will likely work part time until 65. Gradual decreasing hours at work will allow me to concentrate on health and hobbies so I don't retire to boredom.
From my perspective (in my 50s), it's important to communicate that much of the growth during the 40s, 50s, and beyond will be due to investment gains of money previously saved. If the market returns 10%, that's a $10,000 gain on a $100,000 portfolio, and a $50,000 gain on a $500,000 portfolio. At some point, those investment gains may exceed what someone is contributing every year.
We felt comfortable during our 20s and 30s and it truly seems in our 40s is when our net worth exploded overnight! Though maybe I was busy working in the office my whole career and not until 2020 at age 43 and working at home I finally took the time to analyze our finances in closer detail.
in the 2-3 yrs before the pandemic, had annual gains of 2-3 times of my annual salary in NW with 30-40% of gross income invested per year. so the growth was mainly from compounding of market returns and getting good returns on some individual stocks. since retirement 2.5 yrs ago and drawing down assets and no money c0ming in, portfolio is up in retirement slightly more than 2 times my highest salary.
I agree, and I would add that with compound interest your gains will be even greater than the numbers you provided - as you are always earning interest on your interest as well.
yep, it’s compounding and really accelerates the portfolio. keep investing though to keep it going.
My wife and I are in the 90th percentile's for the 30-34 bracket! 401ks and House are where a majority of our net worth is.
That's great. I'm 37 and was in that same boat. We started putting 10-15% away in a brokerage account as well, so we will have some money for early retirement. I also max out my HSA because it can pay for insurance premiums before medicare kicks in. Or you can just work until 65 and be filthy rich, but I figure I'd rather retire early with 10-15M than work longer for 20-25M.
24 y/o , been in the workforce a little over a year, just got past the 40,000 mark today.
All I see is that I have work to do, and that motivates me to no end!!!
It can be tough for couples to get on the same page with spending. The saver/investor in the relationship will follow a budget and the free spirit/spender will ignore it. Pay yourself first is the best strategy IMHO.
Agreed! My wife is the spender, so I just have it set up to invest an agreed upon amount automatically out of our paychecks. We do our budget together monthly, so she knows if the savings dips below our emergency fund amount, then it's time to slow down on the spending for a couple months. Right now we are in the yellow because we just paid for a years worth of tuition up front to get a 5% discount, and we paid in full for a vacation that's 3 months away. So we are going to cut unnecessary expenses for a couple months to build our cash reserves back up.
We do 1/3 taxes, 1/3 investing, and then 1/3 we live on.
Just turned 40, spouse is 38. Our NW (including house) is $1.1M. We grew up with little, so our family just lives easily under our means. Vacations on a reasonable budget, shop at Aldi/Walmart, etc. I drove a 15 year old car until we crossed $1M. Now I drive a seven year old car, haha. Nothing glamorous, just slow and steady growth.
This is amazing. Road to 2 Million dollars
you'll be amazed how much shorter it takes to reach 2 million and from there 3 million etc...
So you should have to pay a wealth on that $1.1M net worth every year, right? Otherwise you aren’t paying your fair share?
@tommyboym6563
I pay what is expected of me with income, sales and property taxes. Cheers!
@@Brad_Boersma this is why we need a wealth tax. Vote Blue!
Congrats on 50K! I feel I am on track to hit my goal of 1 million invested for retirement in the next 10 years.
I’m starting out in the negative this year thanks to student loans, but if things go as planned, I should cross into positive mid 2024 and have full emergency fund from there. After that it’ll be 2-3 years to hit 100k invested and I’m not doing any extra spending until that happens.
Hang in there regarding those student loans. I paid mine off, month by month, for several years. It taught me about frugality and budgeting. Now, 20 or 25 years later, I'm that much better off for having learned those habits. Good luck!
@@TimIsThankful I’m lucky that all my loans are federal loans taken out while interest rates were low. I’ll just be following the standard payment plan and focusing on investing. I don’t understand the fear given how borrower friendly the government is.
Congratulations on 50K!!!
Jeff
Erin, I've been watching your videos almost from the start. I find the information you give timely and VERY worthwhile. I understand this year has had it's challenges for you and your family with the baby coming early and some of the challenges that made for you and your family. I wish you and your small family nothing but the best now and in the coming years. I hope I didn't miss this message if you already made it, but if you don't mind, how is the baby doing? Is everything 'normal'? Thank your husband for his service in the arm forces and his sacrifice. Again, best wishes, Merry Christmas and a Happy New Year!
Hey Rick!! I’ve seen your name in the comments section for a very long time 😊thanks for sticking with me! Baby and I are doing great, thanks so much for asking - make sure to watch the video this coming Monday, baby J and my husband Steve will be making an appearance
Pay yourself first, I definitely follow this!
I know the data would be hard to find, but I would be curious to see the new car sales transaction prices for these age groups.
My theory is that the most expensive cars are not actually driven by the highest income and highest net worth individuals. In most cases, I think it’s the opposite.
You are absolutely correct. Most of my family/1st cousins are close to me in age (62-70). We are all in the 90th percentile, but all of us drive used vehicles, and live in modest homes.
I like the percentile view. It gives me an idea of where we'll likely be if we stick within the current percentile.
Oh wow, thank you for clarifying that the numbers *included the value of people's homes* Very Important caveat for some of us !! I am doing much better than I thought since I didn't include it!
Then you weren't calculating net worth. It's infuriating how many people don't include their home in their "net worth" calculation. People should stop using net worth if they literally don't know wtf it is.
I don't own a home, nor do I rent. Not everyone's situation is cut & dry and no I'm not going to explain how that's possible to a narrow-minded dish*t like you.@@robloxvids2233
Excellent insights to go along with those charts. Your are wise beyond your age Erin. As you state, being disclpline in paying your self first while lliving well within your means will pave the way to a good retirement. Merry Christmas and best wishes for a healthy and happy new year.
Happy holidays Steve! 😊
I think it is important to note that these figures are all for households, so this includes 2 income family units.
Very interesting and informative video.
Thank you! Erin.
With love from Mumbai, India.
I came to US at my age of 21 with $15k net worth, finished my part time 4 year college in age of 29 with zero student loan and got myself full time self-employed. I am around top10 percent on my age of 45. Could be better... Just have to live below your mean, find a life partner with similar values, minimize social circle, delay gratification, and try not to make critical financial mistake.
Looks like I'm in the 90th percentile which is kind of surprising. I've never felt so broke in my life (mid 30s, a couple of kids).
You must just be out of touch with reality. Clearly not broke
@@AusValue well. Saving/investing 50% or so for years on end helps. We never go out to eat, rarely take vacation where we're not just staying with family, own a rental. It certainly didn't just happen.
Hard to imagine that if go to a college classroom of 100 students, you can expect to find one of them worth 650k according to this data.
I'm glad you explained that this data comes out once every 3 years.
Soo many TH-camrs put this video out annually. It's a shame that they must be making up random numbers. The things people will do for clicks…
I wonder if there is some type of formula or balancing to compare a single person's net worth to a couples. Or if they are a couple just divide net worth by 2?
Something that never gets addressed is discounting your retirement holding with potential future tax liabilities
Spot on about it being hard to go from a life long saver to a "spender" funding your retirement with your investments. I just turned 60 and was planning on retiring at 62, but a few years ago went through cancer diagnosis/treatment that changed perspective a bit. Now looking to retire by June this year so I can enjoy my health for how ever long I have it. All the models (NewRetirement, Fidelity, Honest Money, fee only financial review...) have us at 99% success rate of funding retirement - but still freaked out to pull the trigger even though intellectually I know life can be short. The means are there, we are in the 10% bracket according to these charts along with pensions (super fortunate). It's the shifting gears from saver to "spender" that is so emotionally difficult to wrap my head around.
It’s cool to see where I am in other age groups as a 34 year old woman who started investing at 22! If you haven’t started, start now!
Erin, I,m making my 2 20somethings sons to watch your videos! I want to thank you for your content!
Yes!!! 😊thank you and merry Christmas!
@@ErinTalksMoney Yes Indeed!
Important to note that the 0 to 25th percentile are all in debt with negative net worth. Pretty mind blowing that you can live in a country with so many opportunities and still be in major debt.
Great video! Erin, Home Run! I love the Charlie Munger quote.
Lost opportunity costs. Understand what you are giving up when you spend a dollar.
My wife and I paid as we went through college and we're able to graduate debt free. Then we started our careers and started putting money in our yearly Roth amount and putting what our employer would match in the 401k accounts. We just turned 40 this year and just became millionaires. We just started making $100k per year combined. So I know anyone can be a millionaire. Just comes down to persistence!
I am under the 25th percentile (stay at home mom) but my husband is between the 90th and the 99th.
Thanks for the information.
Good video.
One problem is net worth, which typically does not include inputted incomes like pensions or social security.
I don't understand why we don't use averages that exclude the ends of the bell curve. I've never seen that done anywhere. Remove the 2.5% on either end of the bell curve then create averages, I think that would be a sweet way to look at average things without skewing things tremendously. Median is good too.
That's what median numbers are for
@@tuan2u Median just shows the dead middle. My proposal gives the average of the group minus the outliers.
Great content! Really enjoyed your presentation. Relatively new to the channel, really enjoying it so far.
Glad you enjoy it! Welcome!! 😊
Are these numbers reflect household net worth or individuals?
Head of household
Thanks for the great video Erin, Happy Holidays to you and your family.
Happy holidays!
Congrats on 50k Erin! Merry Christmas and here is to 100k+ in the New Year!! I really enjoy and get a lot out of your videos!
Thanks Nathan!! Merry Christmas 🎄
I think that they should do net worth divided by annual net income. That gives a more realistic idea of how much someone is saving and how they need for a comfortable lifestyle.
My regret is i started slow and in my mid-30s. Staring at 40, i ratcheted it up some. But with so many hands in my pockets its difficult to go hard
CONGRATULATIONS! 50k SUB, woot woot :)
Actually the amount of $ the people have available is likely considerably less than the figures shown. For homeowners, a lot of their net worth may be tied up in the home.
E.n.g.a.g.e.m.e.n.t. for Erin. Keep up the great work.
Good Information, Erin. Keep up the good work. ... and Merry Christmas to you and yours.
Merry Christmas 🎄
Video is a bit misleading, these figures are for family (or household) net worth, not individual net worth.
Net worth including the house/home can be a very skewed measure for those in areas where property prices have sky rocketed in the past couple of decades. Unless you are willing to leave your home and move to a much cheaper area. I think a consideration of how much of the net worth is equity built in the home and if you’d be willing to liquidate that at some point is appropriate.
exactly. it's actually a liability for me personally. since i have no plans of selling, i am stuck with much higher property taxes every year. net worth is higher but it also decreases my disposable income to invest.
Really interesting to see the numbers.
UK here so a slight stretch on the red across. We started late but going quite hard, 36m and 34f with about £450K currently. I think we're closing in on the 90th percentile, and although we'll almost certainly never get to the 99th percentile, for us it's just about keeping focused and contributing over the next couple of decades, and we should have a great retirement.
Hi Erin. My primary residence is paid off but I dont include it as part as my net worth unless I decide to sell. Otherwise personally I use my investments like to use stocks, dividends and rental income properties to measure net worth. I like using cash flow investments.
If you're using it to compare, make sure it's the same formula as whoever you compare to, otherwise it's not accurate data
@@bryan8638 in California, most homeowners are millionaires. But it’s basically dead money. My personal investments excluding my primary home is producing cash flow to fund my lifestyle. But overall, on paper a house is an asset.
This kind of thinking is silly. It's still an asset that you have that you could sell. Clearly your net worth would be higher than a hypothetical you in a parallel universe who lives in the same house with a mortgage or rental agreement.
Imagine three versions of you, owning, mortgaged, and renting the same $200k house. Does it really make sense for the renter and owner to both be at +$0 NW, and the mortgaged version to be at -$200k due to the mortgage?
I wouldn't necessarily consider the house a financial investment, or use it for cash flow calculations, but it is a valuable asset you own.
Not including your home is a good idea for your planning. While it does not match the formula most of these statistics are based on, it is a truer picture of the assets you have easy access to when making investment decisions, without a change in lifestyle.
Thanks for doing this video. You correctly point out the value of investing early. The key is thinking ahead when planning things. Do you really need to go on that expensive vacation with little children? I they are under 10 or so they likely will not remember that much. Better to save some money and put into investments. That can make it easier to give them a great education that will pay lifelong dividends and give you a nice cushion in your investments.
My wife and I are about to cross the 100k mark at 26. Except it’ll drop 40k once she gets out of school. But it’s still exciting to at least cross the mark soon!
Two unrelated topics: Average net worth and Are you on track are two different things. The median 65 -69 year old with $393,480 in net worth is not on track for retirement. That may mean their home is close to being paid off. They only need 5 to 10 more years to pay off the the home with zero saved for retirement. Or more likely, they have half of it in a retirement account and a mortgage to be paid for the next 20 years (until they are 85-89). Americans need to wake up. The people that retired a decade ago with this level of savings had a pension to fall back on. They did fine. Someone with less than a million saved when they start retirement and plan to primarily retire on social security will need to work at Home Depot to make ends meet.
We need more videos about the true cost of living in our senior years, the calculation of how much we can expect from Social Security, how much we need to have saved before retiring and how to get there. My example above of a million, may be high or it may be way too low. That is what we need to figure out to know if we are on track.
How do you consider pensions? Interestingly very few TH-cam experts bring this up. Ironically, a majority surveyed believe it should be included in net worth
I'm no expert, but I include my portion of my pension in my net worth (i contribute 6.5% while my employer contributes 7.5%). I can log in and see what the balance is. It appears to be accumulating interest at around 3% annually, too. That is the portion I could take and run if I decided to back out of the pension.
Those average net worths per percentile are a bit less useful than borderlines for how much you need to have in order to join a particular percentile. Now the borderline amount is something in the middle of the averages.
I’m 30, started investing in 401k when I was 27, started a Roth IRA 2 years ago so im decently late to the party. Im at 67k right now.
But I am quite worried about the market lately. I was prepared to see a flat line for years and in the last month it’s just gone up incredibly. Im worried it’s too soon and we’re going to hit another cliff. I guess we’ll see what happens.
The cliff is what you want. Especially being that you are 30. The blood bath is when you can get the stocks cheap. Keep investing. Keep the ship steady. Grab your balls and buy more!
33 with net worth of around 240k. Not great, but not bad... I'll take it.
Merry Christmas, sexy I love your videos, they are so informative without any of the drama! Thank you❤
Hahaha…. I first saw your second comment. And I was like when did I say sexy? This actually makes much more sense now. Merry Christmas! 😂😂
@@ErinTalksMoney I'm not sure either of these responses make sense. I guess I am just dense.
Munger said that in 1994. With inflation you have to find a way to get your hands on $207k now. Then you can let off the gas a little. That would fit with the idea that $2.2M appears to be the new benchmark.
The numbers you gave. Are they the minimal of the group or the median of the group? For example, for 60 to 64 years old, you gave about 3 million for the 90%. Does it mean one needs 3 million to reach the 90%? Or that 3 million is the median for those within 90 to 98%?
I am 52, Wife is 49. Wife will retire in Dec 2024. I cant see my self without working. I worked 2 full time jobs in my 30's. I work about 25 hours a week. Worth about 5 Million dollars.
Though the stats are for the United States and I am a Canadian, I still found them interesting. And if I were an American, I would be doing quite nicely.
Life is good, but good life even better!
I guess I'm doing fine, I'm in about the 65th percentile for my age group with a net worth of around $500K. But I should add that I'm doing it on one source of income instead of two like many married couples.
How are thes numbers at 75th -90th percentile similar for late 20s and late 40s?
How do you account for primary residence in net worth? I've been putting in my mortgage because I'll have to pay it, but not putting in the value because I would have to move to actually see that money and I'm not sure what it would sell for. This makes my number negative, which seems wrong based on these numbers.
If most of your net worth is your primary residence it’s misleading. My brother’s net worth is 1 million of which 90% of that is the equity in his only residence in CA which he can never just convert to cash because he’d have to buy another equally expensive house in CA and his property tax would get adjusted up. He could take out a home equity loan to access the cash I guess, but you don’t want to use that on regular living expenses or investing in the market. It’s not liquid capital. His actual net worth is almost nothing, and he should not keep spending as though he was a millionaire.
Is this for households or individuals? I kinda wonder if these numbers are skewed by double incomes.
It’s household
Is anyone else disturbed by how fast the difference grows above 75th percentile? I wonder how this has changed over time?
When I saw that the 35-39 50th percentile was higher than the 40-44 50th percentile I was a bit shocked. Not sure what happened there but thats interesting.
Married couples should divide by two. This is always overlooked for an easy double up.
Interesting that the 99th percentile doesn't grow nearly as fast as expected by age. Counting a primary dwelling in net worth may give one the warm fuzzies, but it doesn't really matter. If assets aren't generating cash-flow, they shouldn't be counted.
I'm 43 years old with a net worth of close to $3 million dollars. Worked 4 jobs and 100 hours a week sometimes during my late 20s and early 30s. I am hoping to amass $10 million dollars within 10 years.
Unfortunately, I'm an ugly looking guy, so I wasn't able to attract any girls then and even now. Which makes me single. If I die, my money will go all to cancer research.
Lets be honest, when we were in our teens and 20s, most of us think that we will never reach or go beyond 30 or when we become 30 years old, life will just cease to exist and we will just magically disappear. Well I am 32 now lol. Im still alive but it really did felt that life just died after 30. Its become different, darker, harsher, and more real. Whereas before 30 life felt different.
My 401k alone puts me in the 90th percentile at age 46. My wife is also in the 90th percentile. Though we are 100% in the S&P500 and could easily lose 50%.
This is household data, so you guys are crushing it!
Its interesting that you mentioned age 57. That is my planned early retirement age which is when I'll reach 1 million so I'll take that as a sign. I reached my first 100k this year (age 44) across 3 accounts (403b, optional 403b, and Roth IRA) and it's such a relief!
If you are following the 4% withdrawal rule, you'll be living off of $40k, which would likely be the equivalent to less than $25,000 in today's dollars. Hope you're accounting for inflation!
Most definitely! I contribute more every year after I get raises and my mortgage will be paid off by then. I'll most likely move abroad to cut costs
I hope I can get to and stay in the 90th percentile. The 99th would be awesome though lol.
Dang, my husband and I have 30% of our combined salary saved but student debt puts us at -30k net worth. And we have less loans than many of our peers. Student debt is way worse than anyone in high school ever wanted to admit. Wish they didn’t push it so hard on ignorant high schoolers
Are these net worths for individuals, or households? If the latter, and each household averages, say, 2.5 people, then the resultant net worth of each person would of course be less than 1/2 of the stated amounts.
It's household. The DQYDJ site used in this video has more info.
"It is not what you make it is what you keep that matters" can't be right!!! You all do realize I can buy more with 1,600 than I can with 1K and more with 1K than I can with $600. I always so it is for sure what people make that matters but income is just one factor out of many!!!!!
Hi Erin, As always, I enjoy your videos. I'm currently in the 81% bracket for my age group excluding home equity and in 85% including home equity. I'm one year away from retirement and should be close to 90% with zero debt. How is guaranteed income from a pension or annuity. factor into one's net worth calculation? Obviously, it counts if you invest or save a portion of the income but is there net present value consideration for calculating net worth?
Great question!
I'm 45 year old with around 30K range salary. My average total amount of monthly savings and investments is around $500~$600. Should I be more aggressive or just stay in this way until my income gets higher?
Put as much as you can away. Compounding interest is your friend. Roth IRA at your income level is also your friend. Also, shoot for investments that average 10% ROI. If you exceed this, great. If you are significantly below this number consider changing your investments.
12:18 Why the median Net worth drop on age 40 to 44 ?
Kids and college?
Are your numbers for individuals or households? I know you included home values
Are all these figures for household net worth? Did they sample only married couples? Is this for the average age of the 2 working adults in the household? Are you less likely to be married at 20 years old and these are single person households? Maybe I missed it in the presentation, but these details matter in presenting the data.
Curious if this is per individual or household net worth? 500k net worth for a single person in their 30s is very different than for someone who’s married with two young kids
Are these net worths by individual or married couple?
It survey the net worth of household, not individual net worth. Do I have correct understanding? I am confuse when it is classified by age. For a marry couple without any kid, do the number in tables multiply by two?
THOROUGH!!!! Thanks!!!
Interesting numbers. I'm surprised that the median net worth for people in their fifties and sixties is well under $500000. It seems like the 1 million dollar mark isn't necessary for most people to have a nice retirement. It's also reassuring because I'm in my 30s and on track to have less than $500000 saved by my sixties.
I am nowhere on track for my age at 27 as a single man, and I just feel hopeless and discouraged with negative net worth from debt and money telling me and controlling what I can and can’t do, eat or get gas, etc.
Attack high interest debt hard. Work some OT/get a second job to nail it down. Start investing once that debt is gone, continue frugal lifestyle/older cheaper Toyota cars. Do that for 10 years and you'll be well on your way. You can do this.
What I’d give to have the runway a 27 year old has again. No situation is impossible to climb out of, especially when you’re that young. Don’t give up. You have so much time to work with.
Be not in despair, young fella. Here's the remedy. First, change that "woe-it's-me" attitude. You could be and will be worth millions, if you start soon. Get another job or side hustle. If you can live somewhere paying partial or no rent, do so. You will need to change your spending habits. Which means, living on less and placing yourself on a strict spending diet. Living beneath your means, will prove advantageous. Because, it will give you more of your money to invest. Without still, having a bit of fun 😊 along the way. Secondly, educate yourself on investing. An excellent source would be,"Investing for Dummies". This is a good starter source of information, because it will give you an overview of the different types of investment vehicles and how to utilize them. Once you start viewing special interests topics, like stocks for instance, you will go outside of that reference source and begin to read other books. Utilize these sources and your smart-phone to cross-reference and become smarter. Real Estate, stocks, bonds, gold/silver and or starting or buying a business (one day perhaps) is the good
Yes, multiple streams of income. This way, if one thing is not working, something else is..Look into ETFs for the time being (VTI, VOO, SCHD etc.), online high interest savings/checking accounts. The Market is crazy now. So, educate yourself, as you hold onto your cash. If you are going to experiment or start early, use very little of your money. As the Market collapses (RECESSION) and then during the onslaught of healing itself, and becomes reinvigorated , that will be a time to really get in..When people get jittery and begin to offload their stocks, that's where you come in.. Well young brother, that should give you something to think about.. One other thing, that is vitally important : Remember, money is just a tool to allow you to play, do business or otherwise, on your own terms. Let your goodness of heart define you as a person and not the things that you will obtain. Maintaining optimal balance of good mental, physical, spiritual, social and emotional constructs, will always outweigh and prove to be more useful, than any bank account. Good 🤞🏿 bruh and be well.
By the time I'm 2024 years old, I'll have a net worth greater than the GDP of the world, if there is a world left.