Average Net Worth by Age 62
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- Опубликовано: 1 авг 2024
- This video discloses the average net worth by age 62 for an American two different ways. We're all consumed by averages and benchmarks. They help us make sense of the world around us and are sometimes just good fun. In this video, I discuss the average net worth of a 62 year old by both mean and median. At the end I also show you what the top 1% has as their net worth and how most of them got there - you can't invest your way to that number!
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Federal Reserve Board Survey of Consumer Finances:
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My dad for years said, it doesn't matter how much comes in, it's how much that goes out that matters. My parents never made much but they saved and spent wisely. Had a great retirement, both passed at 90. He was right! Skip the silly spending and it can be done.
Great advice no matter what your income
I'm 66 and retired, and above the median. I have my 401k and a Roth IRA and investments and can live on my SS benefits. My cars are 11 and 23 years old, both reliable. I should have started earlier, but my ex was terrible with money and then the divorce. But I am happy and I go often on 2-3 day trips, my cancer is gone, my new knee is doing good, so I am going to enjoy my time left.
That is an Awesome report! Enjoy!
Am 62 and vividly recall my 99 year old Grandpa telling me "If you can't buy it with cash you can't afford it. Look after the pennies and the Dollars will take care of themselves". You were oh-so-right Gramps...
Your Grandpa was wrong about only paying with cash.
How many people would have a house or a car if they were paying cash? Do you think we would have an advanced economy if a bank didnt finance the growth of industry and business? Do you think we would have a $23trillion economy without deficit finance that employs over 125 million Americans? What if your washing machine breaks, what would you do until it took you the time to save up the cash?
That doesn’t mean borrowing more than you can afford or spending frivolously with a credit card, but credit has given us all a much more comfortable and prosperous life.
In defense of Grandpa, he probably meant borrowing more than you could afford/spending frivolously
@@timx9661 you should only buy a car with cash. The only debt you should ever have (if you want to build wealth) is your mortgage.
@@dmbgator86
What if you don’t have the cash but need a car to get to your job?
@@timx9661 then you better get a car for 5k. Some broke people get cars that are 40k. It’s really dumb.
I drink water daily, zero stress, BMI 22.3 and have a pepperoni pizza once a month. I’m Rich 🤑.
Not a manager but make a good living in IT. Nice but not fancy vacations. Wife was stay at home 28yrs. Avoided debt ex: car payments when young. Paid cash for two kids bachelors. 401k at 23,my own mutuals at 26. Only debt is $130k on $500k house. I’m 56 and a NW of $1.9M. Invest as early as you can and AVOID DEBT.
Mike ... the running joke in my family is to live like you make $400 a week so that when you finally crest six figures you still know how to live within your means... by a long shot. These days I am retired and haven't had any long term debt in almost 20 years. It's kinda nice not having any bills at the end of the month other than typical utility payments and taxes, which are discounted to seniors in my area. We also followed the rule of driving older cars, usually till they are well over 100k miles. Buy one new car maybe every 10 - 12 years and the other is a used vehicle.
And remember Uncle Sam will devalue the dollar by fiat money printing. It will take at least twenty to equal the value of one forty years from now. One dollar today
is worth about three cents one hundred years ago. Stealing is kind of like drug addiction, once they start it just gets worse. Banks pay near zero interest so people
find other means to invest causing a bubble. It's kind of like balancing the budget on a tripod with one leg rotting off. I would say with the population nearing
the maximum the good earth can sustain that real estate may be a good investment. Of course, with the government going communist they may take it.
Good luck to the younger generation.
That is almost exactly my situation…AVOID DEBT people…Amen!
@@scinusa Always a wing nut comment. Obsessive compulsive need to bloviate bullshit.
@@rupe53 congrats. The problem is most of America live above their means or are supporting their lazy kids and grandkids.
If you define your worth by how little you need, rather than by how much you own, I predict you will be so much happier.
The average person now lives in more luxury than kings of old.
A much more reasonable perspective of life in this world.
Oh, what a great idea! Thank you!
Wonderful insight thank you
Two important steps:
First is reviewing all your yearly expenses and then identifying how you can permanently remove or reduce those expenses.... starting with the most expensive.
Second is reviewing all your rivers of income and then identifying if you can find ways to add more rivers with minimal effort.
One thing that surprised me when I retired was that I didn't need as much money as I thought! If you want to travel and do a jet setting lifestyle, that's different. You'll need a lot of money. But living modestly, you don't spend a lot.
Thanks Clem
We're really new to retirement - 5 months in - and so far, I'm not seeing how we don't need as much money as before. The family keeps growing, so more gifts, more travel to be there for their important life events (birthdays/weddings/graduations) and more to feed them at family dinners, etc. A large tree died in the back yard, which will require a big expense for removal, and the fuel pump just went out on my fairly new car. So far, I'm just not seeing how we won't need as much as we planned and saved for. Glad you can do it, though.
Totally agree! In 10 years, I will be retiring. Currently, I only spend $2,000 a month. I make 6 times more than I need. I observe people spend on unnecessary things. No wonder, they cannot save money or keep struggling financially.
@@diana6842 get a part time job
Very true. When you are retired, you spend less on clothing for work, transportation costs are cut way down, fewer taxes and no more restaurant meals. I was working for $5/hour (calculating my salary as opposed to my pension). I could easily save $35/day and I did it.
The Bob Ross of finance..love this guy. I’m waiting to hear ‘and over here we have a happy little portfolio’
There are no portfolio mistakes, just happy little accidents!
I muse that before he was a painter he was an FM DeeJay. He has his own channel on SLING TV.
Thank you discussing the difference between average and median. Too many sites use irrelevant numbers, average wealth, in discussing what wealth amounts one should compare yourself to.
I liked the video, I think we all must start saving for our future. As a public school educator in my mid 50’s I think you can have a great net worth if you live within your means. Stop trying to keep up with broke family and friends ( people whom don’t save or spend money just for the sake of doing it) what ever you have now if not retired start Saving!!
And those “broke family and friends” are depending on the government to pay for their kids higher education plus other things… while they buy the big home, fancy cars and world travel. While suckers like us who put our priorities into our kids education - get screwed once again. If people don’t get size and vote out the SWAMP creatures… D and R.
You are so amazing. I love your videos. You make topics that could be dry into something so interesting. Thank you for such a great channel!
Useful data points. That top 1% figure is an eye-opener for sure.
Thank you for another excellent video.
Thank you so much for your informative and 'real' retirement info. You have relaxed us as we are about to retire without 'millions' but trying to be thankful for what have and remembering how happy and content each of our parents were in retirement, with a lot less than we have. You are a blessing!
I started from scratch in 2001 after my divorce. 21 years later I'm debt free, own a house on a lake outright with $1 million in 401k/IRA/cash. My retirement at 62 officially begins next week. My advice? Work hard, live within your means, invest wisely and save until it hurts.
Living within your means is key.
and don 't get married, clearly
@@afridgetoofar1818 That's exactly right. However, I also had full custody of my 2 children.
@@afridgetoofar1818 Well, don't marry the wrong person certainly. When I married my husband 20 years ago I paid off his debts and got him out of a bad investment plan and into a good one. We retired comfortably 5 years ago, having saved nothing for retirement until we married. It's all a matter of teamwork. :)
Did you get the house in the divorce (albeit making payments)? Spousal support and/or child support? I got divorced twice and never got any of those things despite raising two kids on my own.. So I'm much farther behind than the average divorced woman.
i'm 62 and worth around the mean value; for those depressed by being below the mean, median or with negative net worth, just reflect he's not including the 15% of people who were born 62 years ago and are now dead...stay safe everyone
or the 62yr old afgans and illegalls, the new people
@@paulbunyun3663 They are being taken care of better than you! They have a good uncle?
@@alleneng3159 sad but true
@@paulbunyun3663 Spoken like someone below the median or whose skills don’t provide a competitive advantage over newcomers. That said, US is woefully deficient investing in our workforce (education, retraining). BTW most recent and future job displacement is from automation/robotics.
@@gr8dvd no,actually I've been saving and investing well over 35yrs. Money is not an issue with me. I just don't agree on a family of 4 illegals each getting 450,000! thats 1.8 million, yep that what your buddy Brandon is planning
The mean is only greater than the median if the curve is skewed to the right. Usually in statistics if the curve is skewed the median is used as the reported characteristic. It says the most about the curve. The median is almost never reported unless the curve is symmetric and the mode is used in reporting grouped numbers such as gender.
I'm 61 and 62 come next August. I'm retiring. My home is paid off which is in WV. My wife and I need to calculate our sources of income. and will be homesteaders, more less.
I'm very confident in our retirement years. The reasons for 62 is my hearing and neuropathy on my left side. I can't wait for Sept 10th,2023.
Really-excellent perspective! Thanks.
As an emigrant,,,,, never compare yourself to nobody ,,,you will always find people richer and less fortunate than you… take a risk, work , enjoy your life, family in a nice peaceful environment with everyone you meet…..
It's not about trying to compare your value as a person, it's simply a way to see how well-prepared you might be for retirement or whatever other financial goals you may have.
🎯.........🍻
It's immigrant...
@@victorwilburn8588 he's on the wrong channel.
@@ameliaerin1544
No, it's emigrant...savings bank! 😂
200k by 62 seems really low. You can't even buy a decent home for that anymore. It amazes me the number of people who are paying 8$ for a cup of coffee and then complain about money.
I feel like a millionaire now because i dont want for anything. Just like goin to the gym and having a good pizza now and then.
Exactly! Which is why all "how much you need in retirement " videos are useless. It doesn't matter what the average is, or the median, or how much some financial guru says you "need". You need what you need, not what someone says you need. Everyone's life is different. Some will have a mortgage, some will pay rent. Some will be free and clear. Some love to travel, some are content hanging out, working in the garden or going fishing. Some live in NY City, some in Hawkinsville Ga.
Spoken like a true underachiever
You eat pizza at the gym? I’m gonna try that.
@@alansach8437 The problem is, you don’t know how much you’ll need until you get there, so it’s better to be prepared.
It’s high consumption that wipes people out.
Thank you! I’m 71, not 62, but it’s satisfying to know I’m over the mean.
Left a question on another video and found the answer here, thanks!
Thank you Jeff. Appreciate your educational videos.
Hey Schmidt! I like your informative and easy-going style. You don't come across as a cheap salesman.
Good grief. Comforting, worrying, humbling, frustrating - all in one video. Thank you for sharing tough.
Thanks Charles
Thank you. You always provide very interesting information.
Great data, and as ever, very wise to differentiate median and mean (average).
The top 1% is indeed a lofty number and well worth understanding just how far most of us are (or will be) from that 1% total.
I'm surprised he didn't suggest another variable and that is geography. Someone worth $1M in say, KY is going to live on that $1M for the rest of their lives whereas $1M in NY or CA won’t last till next Tuesday.
Yeah I live on about $10k per year in the middle of nowhere so a million would last me awhile
Good thing I live in rural Kentucky!!
@@shellcrackerlover5889 That’s never a good thing.
The downside is having to live in KY.
"Next Tuesday!" Funny.
Thank you for your videos
Interested in the Wizard of Oz plates! Thx for the info!
Success is living to 62 ( you made it that far with or without money) better yet having a healthy family. Success has nothing to do with money. All you ever own and take with you are memories make them good ones.
As you get older, health is wealth.
@Clint Anderson best not try then🙄
Couldn't disagree more. Success is only about money. Sorry
@@Reload77725 you need to be on RUclips special needs. 🙄🤪🔔🔚👍
@@EnglishCad No you need to wake up. Are you paying your bills with all your great memories? Ya didn't think so. Now please go take your medicine and get back to your "fabulous" life.
Would be interesting to see a pdf (or cumulative density function) of net worth for 62 year olds. Let's say you don't have 17 million dollars like the top 1%, but you have more than the median and would like to know at what percentile you do fall.
What good is that sort of money at that age you are going to die?
@@johntruman4397 Depending what you want to leave to children or charities, any amount over zero is more than you need. Problem is you usually don't know when you are going to die, or how healthy you'll be as you work your way toward the end of the line. I'd rather head into retirement with some comfortable margin just in case. Anything extra will go to the kids.
But my question was about a either a probability distribution function (pdf) or a cumulative distribution function (cdf) that shows the net worth as a percentage of the population because I'm curious where I personally fall.
Higher than both median and mean and well shy of the top 1%, but curious just to where we fall.
The other thing that would be interesting is where the folks live as a function of net worth. The same net worth in California won't go as far as it would in some other places.
wow feeling better now. I got a late start, but i'm 59 and i'm at 1.3mm so feeling good. Thanks.
I am just really glad I bought that Princess Diana Beanie Baby back in the 90s. I feel I am set now.
Probably best to eliminate the top and bottom 1% or 2% because they sway the numbers (especially the top end)
I have watch both my parents have dementia in their late 60's and early 70's. I have adjusted my expectations for my "good life" so that I get to do and don't wait till it gets bad. All travel and bucket list stuff will be done 55 to 65. Social security starting age is 67 for me that is the dementia payment.
Thongs change scent from one end to the other. Knowledge is power. God bless
Excellent commentary, wonder if doubling the worth for household net worth would be accurate? The worth of your home probably should be halved ?
Thanks for the RUclips post and your Instagram address 👍
I'm 62 with no debt and a net worth of 2.3 mil. Average annual income over 40 years was around 40 thou. My point is that most people can do this it just takes time and some sacrifice. Buy used cars and pay with cash as you go.
Nice job - I'm close to you...to some extent (worth about 1.6 mill right now). I'm 56 and trying to escape at 62 or 61. I refuse to buy ANYTHING BUT used cars....AND ALWAYS, ALWAYS for CASH. After I buy a car....I restart putting in money in my cash fund for the next one. It also takes one other thing you didn't mention - discipline.
I’m with the both of you, 59 and ~$3.3M (crazy $1.3M house value of coastal SoCa, which we don’t envision selling and cashing out) and like you lived frugally and smartly, 19 and 16 y.o. Subaru’s but at this point we will be buying a new, modest car because we aren’t leaving it to heirs and yeah, we can all afford it at this point of our lives.
My auto loan (on a used car) was 3%, but an S&P500 index fund has returned over 13% annually over the last 10 years. So, I'm not sure I agree with the cash only approach.
@@tpolerex7282 I think when you look at some of those new car prices....you'll be looking back at a decent used car. These new car prices are INSANE.
@@frostysnowman4667 Rock on brother. You worked for it...you earned it.
sitting pretty well . my daughter and grandchildren just moved in and they will take over the place while I live in a cabin I built 30 years ago. growing our own food, producing our own energy my ssi at age 70 will be far more than I need.
Sounds terrible. No thanks
@@Reload77725 the equation is in the heart.
@@wisconsinfarmer4742 Yea you can keep your equation. It doesn't add up to me. Sorry.
My wife and I are 63 and 61 years old. By always living a good life but within our means we now own our house and two condos on the beach and are 100 % debt free. We will be retiring at the end of this year and have a net worth of about 2.5 million. I will start collecting social security within a year and we will rent our house and one beach condo to supplement our retirement income. We have always lived by the rule of paying off debt ASAP and not feeling like we have to get new cars every few years. We usually keep our cars 6 or 7 years.
Too many people concern themselves with "where they stand compared to others". I never have. The best thing anybody can do is to be debt free by the time they want to retire. I never worried too much about being a millionaire. All I wanted was to have enough money that I didn't worry about money, but not so much that everyone was trying to get it from me. That's what I call the sweet spot.
Your median net worth of $229,000 has some meaning because half the people have more and half have less. Your average net worth of $1,188,000 has little meaning because of the skew of the very rich individuals. If you only included people with a max of 10 million or even as low as 10 times the median net worth (10x$229,000) or $2,290,000 the average would be much different. I would say that less than 10% of the population would have a net worth of $1,188,100.
There is another reason to file for benefits early. I filed for social security benefits when I attained age 62. I did not need this extra income, so I carefully invested it in technology stocks. By age 70, the income I made each year on this investment plus my reduced SS benefits I received at age 70 greatly exceeded the income I would have made If had elected to receive my benefits much later.
Yea ok. Why didn't you invest when you were younger if you're so damn smart.
@@Reload77725
Nothing he said indicates he didn't clueless. Is. Isn't it funny how the most ignorant people want to be a smart ass.
@@Reload77725 He never said he didn't invest when he was younger. Try being less bitter and envious of others who have done better than you.
Technology stock suck lol. Only thing I’ve lost money on
Most financial advisors would recommend against investing in volatile assets like (technology) stocks at that age. Your risk need to be inversely proportional to your age. The older, the less risky.
Wow, those numbers are high. I've never owned a house, though.
Great info! Highlight 3:28 mark.
Wealthy people don't necessarily own the latest gadgets or cars or throw lavish parties. What they do have, is a lot of assets, such as real estate, investments, and cash. For example, if your monthly expenses are $ 5,000 per month, and you have $ 30,000 in savings, then you have about six months worth of wealth. If you invest that $ 30,000 and you end up with $ 5,000 a month in investment revenue, you are wealthy.
Investment should be on every wise individual list. In a few years you will be ecstatic about the decision you made today.
There is a saying that money has wings it's best you save it properly, invest it wisely and spend it judiciously.
If only some people would be patient to understand that B!tcoin isn't going anywhere, instead it's taking over the globe.
Investing for retirement is the most important thing everyone should plan and be able to save enough for retirement
Please where can I find a nice platform to invest.
The problem most people have during their working years is they do not live within their means. Gotta have two or more cars. Need expensive vacations. Need all the toys like an ATV… Need the latest tech gadgets and cell phones with unlimited plans. Need the McMansion house. All the paid TV… and then they are shocked that they have little or nothing for retirement. Totally their fault!
We worked hard, paid our bills, put our kids through college, saved for retirement and retired in our late 50’s with over $3.5 million for retirement.
Damn! I was hoping to make a killing on those Wizard of Oz plates.
Loove the way you give information..
Fast forward to 3:33 for the answer.
Yea it took a long time to get to that number 229,000. Pretty pitiful for most Americans.
For everyone reading this comparing their net worth, take it from me, you have nothing without your health, and your spouses.
I was well over double that number at 62, always took care of myself then my wife had a stroke. Between medical expenses and taxes these numbers mean nothing when your in retirement.
Even with decent insurance, you need to plan for life changing medical events.
The medical industry, Vulture Inc., is there to drain you dry if it has half a chance. I'm not sure how to plan for that besides getting mentally resigned to the possibility or being prepared to get reasonably priced care in a country that specializes in medical tourism. I wish there were legal trusts people could create to live off and protect themselves from an industry that refuses even tell you how much it's going to cost before they charge you. Your medical emergency is their right against truth in lending. It's pathetic. I'm sorry for what happened to you. It's a travesty and a disgrace to America.
Or move to a country with a reasonable medical system at reasonable cost (most non-western countries). Plus people are living too long.....
@@Xalta_Sailor Should people go the way of Logan's Run?
True
Health is wealth
I am 61 this year. We live in a City state that is "Wealthiest" or 2nd most wealthy in the world. So everything is relative. So we moved to a "poorer" country - and suddenly we are "Wealthier" and spending less money. We have enough savings. But more important is to feel emotionally comfortable with what we have. So we moved to a cheaper house in a cheaper country,
Well, I am 67, working, and mostly struggled to make sure I made my house payments and had a running car, plus food, etc. I do not buy new cars, I have a tiny amount of investment.... but... I have had plenty of time in my life to also be happy and feel blessed. I at first felt sick when I heard this, but, am alright now after reading a few comments. It seems interesting that most of the comments are from people who were checking this stuff out for most of their lives. Many people lost almost everything back in 2008, and I have plenty of friends who have passed away and never got any social security or other benefits. My plan is to live in my car if ever I need to ..... it has always been that, luckily now I have a home, but I will need to be able to keep paying taxes or I lose it.
That’s fine, but there are a lot of people who have enjoyed life and managed to save for their futures. I’ve grown a little wary of people implying that those who are able to put away have deprived themselves.
@@spankynater4242 oh..I am happy for you. I was barely making it most of my life..but have enjoyed my life too. Everyone is probably doing the best they can and some know more than others. But..I do know many that can afford to save abd invest and have newer things too. I think I was bragging more than trying to put others down. 💝💝💝
I probably should have paid more attention in school way back then...
Holy Schmidt I am poor. I survived cancer, I own my own home and I have NO debt. "I Win"
Yay! You win!!! I'm glad SOMEBODY did!
How do you value defined-benefit pension benefits? I guess you would calculate the Present Value (PV) and add that?
The REAL measure of wealth is not the dollars that you are "worth", but the life you live.........I loved working as a Fireman and on some days off, laid carpet (Both careers brought enjoyment to me)...WE-- bought property and did well.. Most importantly, WE--- HAD FUN!!!!..WE--- did a lot of water AND snow skiing...We owned power and sail boats along with motor homes..WE-- have done 8-10 cruises, been to Europe, Africa, Iceland, and many islands.. ..WE did this with kids too..The real measure is how much you lived..The kids are doing well and everyone is healthy..We have a roof over our head, meals and a FOREVER retirement...
My health, and my time, is way more important than wealth.
I agree but it's not all or nothing, you could do all three
I have something that most rich people will never have, I have enough!
My mother in law used to say that. "We never had a lot of money..." she would say, "but we always had enough." Who could ask for more than that?
At 45 my net worth is around 3/4 of a million. We are saving hard and growing that by the week. Just keep saving. The younger you start the far better off you will be.
Thank you
Some great pragmatic info here. Thanks for including median and mean in this discussion. How about some % brackets? You told us the 1%. How about top 3, 5, 10%???
The biggest influence is interest rates. If I had an income stream, say a government retirement, of $50,000/year in 2007 it was worth $750,000 in Treasuries. Today, the same $50K income is worth $20M in the treasury.
Not really, your net worth is based on all of your holdings at any given time. That’s all.
@@spankynater4242
If your holdings aren't 100% treasuries, you are poor.
I value my worth by how happy I am and the type of person I have grown into.
This is not about how you value your worth, it’s about your net worth. All your happiness in the world is not going to help you when you need to put a new roof on.
Thank you for video, well explained
Does “net worth” include or exclude the accumulated value of a personal pension fund? The reason I ask is that such funds can be substantial, but are not readily capable of being turned into cash before a designated retirement date. At least that’s the case in the European country I live in. I would appreciate clarification on this important point, thanks.
In the US, our pension plans often show cash value of the pension as it grows over time. I don’t know if the all do. I don’t add that to my own net worth calculation, but I might consider doing it now that you mention it.
If you can realistically calculate your spending in retirement and subtract that amount from your monthly annuity payments and if you have money left over for saving and investing, your net worth will grow in retirement.
I am almost 61 with 15 months before I retire. My income will consist of 3 rental properties owned outright valued at 1.3 million according to Zillow. My sister and I own a home in San Francisco where I currently live with a mortgage of 1100 a month and appraised recently at 1.9 million. Only 130k in my 401k because I spent the last 7 years paying off my rentals.
401k or home assets, it doesn't matter as long as they make money.
@@stephenc2481 I agree Stephen👍
I'm glad I was always pretty cheap. I don't like paying for labor if it's something I can do myself. My whole house I renovated by myself, fully insulated everything, re-wired, drywall, mud, tape, etc.
If your young you NEED to do everything you can yourself. Your money is much more valuable now than for the instant gratification of getting everything you need or want now instead of later.
My clutch / pressure plate on my car when bad and instead of paying someone to replace it I'm just going to do it myself. Saves me 2-3,000$, I get to buy some tools and get to learn a bit as well at the same time.
Learning is also compounding. Every business idea started with a need, if you experiment with everything you have the chance of finding a need that isn't fulfilled, if you have a large skillset from a lifetime of just doing everything yourself, imagine how many needs you can solve if you understand all aspects on how to fix it and market it to consumers..
Was about to subscribe, then he crushed my Wizard of Oz Plate retirement dreams.
no, don't listen to him he's trying to corner the market
After my divorce I donated my wife's collector plates to a Greek Wedding. That was worth a lot to me.
When calculating averages and medians, how do people with negative worth skew the results...or do we just calculate from zero on up?
do people with negative worth skew the results
Yes.
You just add in their negative total. If 9 people were worth 2 million dollars and the 10th person was worth -100k then collectively you have 10 people worth 1.9 million, or a mean of 190k per person.
I'm not doing bad at 53, made it over the million mark last year.
Nice work - keep going!
Question-when you state the average 62y.o. net, is that per capita say, in an empty nester household of 2 where each individual's net worth is doubled? It's late night rambling but I hope that made sense.
I have the same question here. Does anyone know?
Does a defined benefit pension count as an asset in determining net worth?
Not until it's received - meaning cash deposited in the bank. Remember, a monetized asset must be something that can be liquidated. However, if you take the cash option upon retirement that obviously can be a factor calculated as part of your net worth.
A defined benefit is a lifetime annual payment-like CALPERS and CALSTRS and it is part of your net worth as long as you live and your state does not go under-the best pension in the world!
@@BarnabyBarry Thanks for your reply. That is what I thought but wasn't sure.
Extremely interesting. Is there any way to provide us with the top 5%, 10% and 15%?
I am just a few hundred dollars off of the top 1% net worth....felt pretty bad about.
@@stephenc2481 lol don't feel too bad. I'm somewhere around 8% percentile. But I'm 53, and hitting 5% is possible by the time I retire when I turn 60. Seems like a tough target, why not. Congrats by the way on your net worth, I can only imagine the stories of what it took to get there, very cool.
@@stephenc2481 phew, must suck to be you
@@stephenc2481 Obvious sarcasm. Someone worth that much makes a $1000 every hour. Not to mention they're not spending their time watching RUclips!
@@hudson651 how do you know this?
good videos
Many 62 year olds are richer than they think. If they’re receiving a guaranteed pension, that future cash flow represents an asset that should be factored in when determining net worth. To determine the worth of that pension, you could do a direct capitalization income approach to determine the value. The annual pension amount divided by 4% would give you a good rule of thumb value.
Since only 4% of private sector workers have a defined benefit Pension, my guess is you’re a retiree in the Public Sector.
You’ve also convoluted the 4% retirement rule, which is the recommended amount to withdraw from your retirement nest egg to sustain it over time. There is really no point to calculating your net worth if you have a pension. The goal is to generate sustainable income that you can live off of. If you must, take your annual payment X 25 to determine what it would take to generate the income you’re receiving from your pension.
If you have a 40K annual pension, it would take you $ 1million to generate that much income safely if you don’t have a pension, adhering to the “4% rule”. $40k a year is a millionaires Pension.
@@timx9661 Good reasoning
@@timx9661 holy crap 4% of Americans get a pension? Knew it was a small number but not that bad...
Not all pensions are 100% guaranteed
@@NeilLGray-cq1vi Agreed. See the first word of the second sentence in my original post.
If you're happily married couple, is your net worth half of the total couple's assets or is it both you and your spouse combined?
Between 1/4 and 1/3 yours, 2/3 and 3/4 hers when she divorces you ...
I know a couple who subscribe to the 'asteroid' theory of debt management. Their theory is that the couple with the most financial debt at the time of a nearby, massive asteroid strike, is the winner!
Oh, Donald Trump’s model then?
Good one!,,
You die in debt you are money ahead theory
For the top-1% figure, is that the mean of the top 1%, or the threshold to be in the top 1%?
Shooting for hitting the 5th percentile by 60 (target retirement), we'll see! Honestly only shooting for that because I'm married, the wife has a much more "expanded" viewpoint of what we "need" than I do. I could retire today if it were just me (comfortably, by my definition of it).
Oh wow Thank you for showing me that scale. I am only 40s and Married and I am already half way there or above the average for the 62 person range or there 1.1000000 Million range.
Happiness is more important than net worth
Don't discount net worth. Yes happiness is very important, but you are confusing the relationship between net worth and happiness. You can't be happy when hungry, in pain, living under a bridge or living in a poor neighborhood where your children are murdered in the streets.
Took him 5 minutes to say $229k.
Great topic
My net worth is negative, less than 0; due to student loans:(
How to get rich eventually. Be nice to the people you might get an inheritance from.
Suggest, I’ll put you in my will if you put me in your will.
One worth considering :)
Someone might have you killed off to get your assets sooner than later.
What happens if you kick out the top 1% or 2% and do the mean (average) on what's left? That would be the best indicator.
In Astralia, average net worth is grossly inflated with the housing affordability crisis. Interst rates rising and house pries faling will reduce may peoples safety net to a fraction of what they think it is.
Well, one important piece of information missing here is whether he is talking about individual net worth, couple net worth, or household net worth. Based on statistics I have seen elsewhere I believe he is talking about household net worth as the numbers seem to reflect that. Most households consists of more than one individual so these numbers based on individual net worth would be lower.
I found this interesting and provides factual reference. Different from conversations I have had with Financial Planners, typically revolve around the 'you don't have enough'. Appreciate you posting this!
Ideally, a financial planner would be looking at your situation and needs. The fact that you have more than the median doesn't necessarily mean you are doing OK if your expenses are much higher (live in an expensive area for example). Plus we don't know if people on the median are going to have a satisfactory retirement anyway!
I’m curious what the top 1% net value would be if you excluded billionaires? How much would it drop? It would give a more realistic goal than $17mil
Cool above the mean and thats with all the disasters along the way..
Damn, I was planning on listing my Wizard of Oz plates on ebay soon.
So what I am getting from this video... I should buy Wizard of Oz plates now... while the price is down... buy low and sell high. right?
I'd pay good money for a flying monkey plate
I don't care what the market rate is...I still want at least $2K for my Mickey Mouse plates.
@@BillyO8828 It's hard to get a good price on Mickey Mouse plates. There are a lot of fakes coming in from impoverished countries.
Just turned 62! Very timely video for me :-)
Actually, it’s probably more timely for some who’s 42 and hasn’t saved a dime for retirement.
IN Our area it is about 25,000 to 60,000
Love it, but have a question ; What is the median for 70 years old ?
At 70, there is no need for the calculation. If you don't have enough, you are out of luck. There is no fixing.
You could easily Google this