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.
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 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!
My wife is a teacher and one year younger than me and I retired from the USN in 2018. We’ve been married for 23 years, she invested almost immediately after college and I started in 2004. We became debt free in 2013, millionaires in 2018, allowing me to retire a week before my 45th birthday, to become a semi professional house spouse. We were previously in the top 10% of average net worth by age, but is now 15% after the update & she plans to retire in 2028.
I'm a retired Army nurse; got a GS position immediately doing the same job at the same military hospital. I figure two retirements are better than one; and still healthy enough to enjoy full retirement.
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.
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.
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.
Thank you, Erin! You are my wife's favorite and we watch every one of your videos together. For me, home equity is misleading when trying to understand net worth for retirement. When you apply any of the advanced retirement tools, home equity is typically ignored because it is not liquid and you are still living in it and thus can't sell it. If you plan to downsize or rent at retirement, then home equity (net of transaction costs) included in net worth makes sense. with all of that said, home real estate equity has been a big part of our planning.
I always include home equity in net worth. Common knowledge that it doesn't generate cash flow in retirement is wrong. You can rent out part of it, or take out a reverse mortgage, all while still living in your own home until the day you die. Plus late life medical bills always loom on the horizon, and you can sell your home to pay those bills and fund any stay in senior care someday. Why not count the biggest financial investment most of us will ever make, especially when it can help in so many ways?
Well, thank you for always tuning in! I like to calculate net worth excluding Home value as well. Because I think investable assets kind of give you a better picture on the lifestyle you’ll be able to fund when retirement comes around. However, I have realized overtime that it’s probably best to calculate two different net worths. One, including your home value, and one excluding your home value. Both valuable, just for different reasons.
@@ErinTalksMoney , i have a net worth of about 1.4 million wirh the house being only 150,000 of that. If i had no house, the rent here is now 1100 a month.. Property tax i pay about 1100 a year. Its a 2 bedroom, i bath with a garage brick house with metal roof and enclosed porches that could be used as bedrooms i suppose. . Very inexspensive to heat and cool.. Paid 100 grand for it 10 years ago. Most of net worth is index funds. Have 4 utilities that cost 200 a month. Zero debt. Do not receive social security or retirement funds yet. Have 1 million in retirement funds and with low exspenses allowing it to grow . Have a taxable account that provides a very modest income. Started working on family farm as a child and a corporate job at 20. Saved aggressively starting at 20 also. Current age 66. FRA for me is 66.5 . Trying to decide when to start collecting a payment from SS or retirement funds. So far have not needed the money. Unspent by yearly capital gains and dividends from taxable investments has accumulated to 70 grand in a couple years rather than having it redeposited so bought a CD i was tempted to buy a truck but bought the cd instead. . Have 18 year old convertible, not the best mountain car. So considering a 2 or 3 year old small truck if i can find one. Live in a nice part of a small rural town. I can walk to grocery store, post office, church, the few stores we have easily so drive the car very little anyway. Do have friends who take me to Arizona, Colorado and utah points of interests a lot. They find my convertible uncomfortable. So they drive there large pick ups. I go along for the drive. Help wirh gasoline when they let me. Biggest exspense is medicare insurance. From 58 to 64 had no medical insurance but never sick so was not a problem. Started at 65 to have medicare just in case. Also bought medigap insurance, G high deductible just in case . Its 366 for the year. I wonder what else i should be doing to enhance quality of life ? President of local Rotary club. Secretary to mens church group. Do a lot of service , donate time at a food bank etc. Been divorced 21 years and due to religious beliefs been celbate all those years too.. Play basketball with sister missionaries and there friends they bring to church. Seems ladies more my age have Healrh and Debt problems..Finding a lady with no health and debt problems a huge challenge. I just live the church teachings of no alcohol, tobacco, coffee, tea or caffeinated soft drinks when i joined the church at 23. Eat red meat sparingly. Chicken mostly. Use crock pot a lot. Went on a singles cruise but was lonely . Not into the bar scene.. Dont gamble. Enjoy walking or riding a bike. Again ladies my age have health issues and when i try to give information to help them like loose weight, eat heathy, of course doesn't go well. Any suggestions? .
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.
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.
Hi Erin, love this video and topic! Thank you for all your hard work for this entire year! You are helping so many people. Hope you have a great and Christmas and New Year. And can’t wait to see you show your new baby and the name you and your husband chose. Merry Christmas to you and your family 🌲 😊
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
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.
Good video Erin! I always look at discretionary versus non-discretionary expenses along with net worth. It’s a lot of work to track expenses, but it is necessary exercise. These comparisons are feel good fun.
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!
32 years old - net worth not including my personal residence 943k. Mostly because I own 8 residential properties in Texas and saved heavily in my 20s while working as a CPA
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.
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.
I can't wait for the next one in 3 years to see how things trend. I feel like younger folks are investing more, and that generation should curve the numbers up.
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?
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
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’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.
Haha. Statistics. They can be spun anyway you want them. I'm no millionaire. I'm below the 75th percentile of my age bracket. I retired at 52 and I am very comfortable. Shows that controlling your expenses is just as important, if not more important, as net worth. My net worth has actually increased in retirement. Net worth can also be skewed by real estate. I don't have any. My net worth is all investments and cash. Congrats on 50k subs!
Congrats on 50k!! You do a great job explaining everything. I watched your videos early on and could tell you would be successful on youtube. Great job!
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.
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 would be interesting to know the impact of inheritance on these numbers (especially the 75th percentile and above). Most net worth is surely due to consistent saving and compounding, but some folk certainly get a modest to substantial boost from inheritance. Perhaps there is data about average and median inheritance by age group, somewhere.
Also, money for college alone would be interesting. If someone paid for even half of my college my NW would be over 1 million instead of 350k. Still doing very well but the math shows how much valuing your child’s education over bs spending matters.
Lots of studies show inheritance accounts for very little to zero percent of wealth for millionaires. Millionaire next door and Ramsey both point to this in their research. I would guess most of the 90 & 99 percentile are high income individuals. I'd love to see that data.
I read recently- I can’t remember where- but it was in the fact that people were inheriting estates later even after they retired. I started looking at this since it will really affect taxes with RMDs kicking in soon. To get inheritance at the same time would be a big deal
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.
If anyone is actually trying at all and starts investing in their 20's, they will be in the top 90% easily. It's only hard when you get a late start. But even with a late start, the best time to start investing is today.
I inherited $1.6 million and my boyfriend is also a millionaire, I'm very happy my net worth is so much higher than average. I'm 24 this year and our hard work so far has paid off so well.
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 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.
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.
@@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.
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.
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.
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%?
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!
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.
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.
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 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?
Did anyone else notice that elder Millennials (40-44) have a lower median net worth than the next bracket down (35-39)? If that's not a chart error, the start of the Iraq & Afghan Wars, the recession, and the pandemic have apparently kicked our butts in a way that it didn't hit other people. I'm very curious.
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.
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.
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.
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.
@@ErinTalksMoney Interesting. I thought you would have been a financial planner. Great content. I like the straightforwardness of your videos. I’m 50 with 2.1M NW excluding real estate. I’m sending these videos to my son who just entered the workplace. Sometimes it’s better to hear this advice from people besides your parents.
Went to school and got a degree in financial planning …but I hate the idea of charging based on assets under management. So I still get to use my degree by making videos. And I truly do enjoy my day job….so it’s a win win
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.
Is this by individual and not household? So should I split my household net worth in half if it's me and my husband to compare my net worth to these numbers?
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!
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!
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!
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.
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.
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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.
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!
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 .
My wife is a teacher and one year younger than me and I retired from the USN in 2018. We’ve been married for 23 years, she invested almost immediately after college and I started in 2004. We became debt free in 2013, millionaires in 2018, allowing me to retire a week before my 45th birthday, to become a semi professional house spouse. We were previously in the top 10% of average net worth by age, but is now 15% after the update & she plans to retire in 2028.
I'm a retired Army nurse; got a GS position immediately doing the same job at the same military hospital. I figure two retirements are better than one; and still healthy enough to enjoy full retirement.
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.
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 found retirement was not a difficult transition at all, as the portfolio continued to expand. The joy of watching it grow never gets old.
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.
Thank you, Erin! You are my wife's favorite and we watch every one of your videos together. For me, home equity is misleading when trying to understand net worth for retirement. When you apply any of the advanced retirement tools, home equity is typically ignored because it is not liquid and you are still living in it and thus can't sell it. If you plan to downsize or rent at retirement, then home equity (net of transaction costs) included in net worth makes sense. with all of that said, home real estate equity has been a big part of our planning.
I always include home equity in net worth. Common knowledge that it doesn't generate cash flow in retirement is wrong. You can rent out part of it, or take out a reverse mortgage, all while still living in your own home until the day you die. Plus late life medical bills always loom on the horizon, and you can sell your home to pay those bills and fund any stay in senior care someday. Why not count the biggest financial investment most of us will ever make, especially when it can help in so many ways?
Well, thank you for always tuning in! I like to calculate net worth excluding Home value as well. Because I think investable assets kind of give you a better picture on the lifestyle you’ll be able to fund when retirement comes around. However, I have realized overtime that it’s probably best to calculate two different net worths. One, including your home value, and one excluding your home value. Both valuable, just for different reasons.
@@ErinTalksMoney , i have a net worth of about 1.4 million wirh the house being only 150,000 of that. If i had no house, the rent here is now 1100 a month.. Property tax i pay about 1100 a year. Its a 2 bedroom, i bath with a garage brick house with metal roof and enclosed porches that could be used as bedrooms i suppose. . Very inexspensive to heat and cool.. Paid 100 grand for it 10 years ago. Most of net worth is index funds. Have 4 utilities that cost 200 a month. Zero debt. Do not receive social security or retirement funds yet. Have 1 million in retirement funds and with low exspenses allowing it to grow . Have a taxable account that provides a very modest income. Started working on family farm as a child and a corporate job at 20. Saved aggressively starting at 20 also. Current age 66. FRA for me is 66.5 . Trying to decide when to start collecting a payment from SS or retirement funds. So far have not needed the money. Unspent by yearly capital gains and dividends from taxable investments has accumulated to 70 grand in a couple years rather than having it redeposited so bought a CD i was tempted to buy a truck but bought the cd instead. . Have 18 year old convertible, not the best mountain car. So considering a 2 or 3 year old small truck if i can find one. Live
in a nice part of a small rural town. I can walk to grocery store, post office, church, the few stores we have easily so drive the car very little anyway. Do have friends who take me to Arizona, Colorado and utah points of interests a lot. They find my convertible uncomfortable. So they drive there large pick ups. I go along for the drive. Help wirh gasoline when they let me. Biggest exspense is medicare insurance. From 58 to 64 had no medical insurance but never sick so was not a problem. Started at 65 to have medicare just in case. Also bought medigap insurance, G high deductible just in case . Its 366 for the year. I wonder what else i should be doing to enhance quality of life ? President of local Rotary club. Secretary to mens church group. Do a lot of service , donate time at a food bank etc. Been divorced 21 years and due to religious beliefs been celbate all those years too.. Play basketball with sister missionaries and there friends they bring to church. Seems ladies more my age have Healrh and Debt problems..Finding a lady with no health and debt problems a huge challenge. I just live the church teachings of no alcohol, tobacco, coffee, tea or caffeinated soft drinks when i joined the church at 23. Eat red meat sparingly. Chicken mostly. Use crock pot a lot. Went on a singles cruise but was lonely . Not into the bar scene.. Dont gamble. Enjoy walking or riding a bike. Again ladies my age have health issues and when i try to give information to help them like loose weight, eat heathy, of course doesn't go well. Any suggestions?
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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.
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.
All I see is that I have work to do, and that motivates me to no end!!!
Here come all of the "look at me" people. 🙄
Thank you, Erin. This is informative. My net worth is good for me. Home ownership helps tremendously!
Hi Erin, love this video and topic! Thank you for all your hard work for this entire year! You are helping so many people. Hope you have a great and Christmas and New Year. And can’t wait to see you show your new baby and the name you and your husband chose. Merry Christmas to you and your family 🌲 😊
Merry Christmas! 🎄
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
Congrats on 50K! I feel I am on track to hit my goal of 1 million invested for retirement in the next 10 years.
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.
Good video Erin! I always look at discretionary versus non-discretionary expenses along with net worth.
It’s a lot of work to track expenses, but it is necessary exercise. These comparisons are feel good fun.
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!
Congratulations on 50K!!!
Jeff
32 years old - net worth not including my personal residence 943k. Mostly because I own 8 residential properties in Texas and saved heavily in my 20s while working as a CPA
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.
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! 😊
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.
Pay yourself first, I definitely follow this!
I like the percentile view. It gives me an idea of where we'll likely be if we stick within the current percentile.
This was a VERY USEFUL video, thank you! Great follow up to the previous one.
I can't wait for the next one in 3 years to see how things trend. I feel like younger folks are investing more, and that generation should curve the numbers up.
Are the charts individual or couples
household
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?
Great video. I'm glad you brought up the median and the average, because some people don't get that. Huge difference in what they mean.
Are these numbers reflect household net worth or individuals?
Head of household
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
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’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.
Haha. Statistics. They can be spun anyway you want them. I'm no millionaire. I'm below the 75th percentile of my age bracket. I retired at 52 and I am very comfortable. Shows that controlling your expenses is just as important, if not more important, as net worth. My net worth has actually increased in retirement. Net worth can also be skewed by real estate. I don't have any. My net worth is all investments and cash.
Congrats on 50k subs!
Congrats on 50k!! You do a great job explaining everything. I watched your videos early on and could tell you would be successful on youtube. Great job!
Great video. Is this house hold net worth? Or would I double there numbers if married?
Great question. I'm wondering that as well. Are these amounts for individuals or for households?
Good video.
One problem is net worth, which typically does not include inputted incomes like pensions or social security.
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.
great advice ! thanks ... 'Pay yourself first ...' start young & do it often ... this is the first Erin video I've seen ...
Nice! Welcome to the channel 😊
Great content! Really enjoyed your presentation. Relatively new to the channel, really enjoying it so far.
Glad you enjoy it! Welcome!! 😊
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 would be interesting to know the impact of inheritance on these numbers (especially the 75th percentile and above). Most net worth is surely due to consistent saving and compounding, but some folk certainly get a modest to substantial boost from inheritance. Perhaps there is data about average and median inheritance by age group, somewhere.
That would be an interesting topic!
Also, money for college alone would be interesting. If someone paid for even half of my college my NW would be over 1 million instead of 350k. Still doing very well but the math shows how much valuing your child’s education over bs spending matters.
Lots of studies show inheritance accounts for very little to zero percent of wealth for millionaires. Millionaire next door and Ramsey both point to this in their research. I would guess most of the 90 & 99 percentile are high income individuals. I'd love to see that data.
I read recently- I can’t remember where- but it was in the fact that people were inheriting estates later even after they retired. I started looking at this since it will really affect taxes with RMDs kicking in soon. To get inheritance at the same time would be a big deal
@@matthewtravis24 was just going to post this, good job
Very interesting and informative video.
Thank you! Erin.
With love from Mumbai, India.
24 y/o , been in the workforce a little over a year, just got past the 40,000 mark today.
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.
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!
It’s hard to start, but the 90th+ percentile is possible, we did it! Takes dedication to save first, spend second.
If anyone is actually trying at all and starts investing in their 20's, they will be in the top 90% easily. It's only hard when you get a late start. But even with a late start, the best time to start investing is today.
@@Joenzinator We didn’t seriously start until later but agree. Just need discipline.
Great video! Erin, Home Run! I love the Charlie Munger quote.
I inherited $1.6 million and my boyfriend is also a millionaire, I'm very happy my net worth is so much higher than average. I'm 24 this year and our hard work so far has paid off so well.
I think it is important to note that these figures are all for households, so this includes 2 income family units.
CONGRATULATIONS! 50k SUB, woot woot :)
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 am under the 25th percentile (stay at home mom) but my husband is between the 90th and the 99th.
Thanks for the information.
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.
Is this for households or individuals? I kinda wonder if these numbers are skewed by double incomes.
It’s 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 🎄
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.
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.
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.
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!
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.
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.
Something that never gets addressed is discounting your retirement holding with potential future tax liabilities
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%?
Good Information, Erin. Keep up the good work. ... and Merry Christmas to you and yours.
Merry Christmas 🎄
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!
Lost opportunity costs. Understand what you are giving up when you spend a dollar.
How are thes numbers at 75th -90th percentile similar for late 20s and late 40s?
Is there data out there on average/median levels of household debt by age group?
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.
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.
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 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?
Did anyone else notice that elder Millennials (40-44) have a lower median net worth than the next bracket down (35-39)? If that's not a chart error, the start of the Iraq & Afghan Wars, the recession, and the pandemic have apparently kicked our butts in a way that it didn't hit other people. I'm very curious.
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.
Hey guys,
Are these numbers household or per individual?
Thanks!
Household
I went from being mildly disappointed with myself to being pretty impressed once I realized it was household rather than individual. 😅@@ErinTalksMoney
Is this by household or by individual?
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.
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.
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.
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.
E.n.g.a.g.e.m.e.n.t. for Erin. Keep up the great work.
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.
Great content Erin. What was your career prior to YT?
I work in dental insurance - and I still work my day job 😊 TH-cam is a side business for me
@@ErinTalksMoney Interesting. I thought you would have been a financial planner. Great content. I like the straightforwardness of your videos. I’m 50 with 2.1M NW excluding real estate. I’m sending these videos to my son who just entered the workplace. Sometimes it’s better to hear this advice from people besides your parents.
Went to school and got a degree in financial planning …but I hate the idea of charging based on assets under management. So I still get to use my degree by making videos. And I truly do enjoy my day job….so it’s a win win
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
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.
Is this by individual and not household? So should I split my household net worth in half if it's me and my husband to compare my net worth to these numbers?
It's household.
@@mikelentz833 Thanks!
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!
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!
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
Video is a bit misleading, these figures are for family (or household) net worth, not individual net worth.
Are these net worths by individual or married couple?
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.
Are the data here medians or means? I think I may have missed it. They seem a bit high in some cases to be medians.
50th percentile is presented for all ages and that’s the median 😊 - average compared to median is presented toward the end of the video
@@ErinTalksMoney I guess what I'm getting at is I don't see where in the federal reserve survey link you provided where you're getting the numbers.
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.
I wonder if these figures are per person or per household ?
Per household