I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?
Many people minimise the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm solvent. I looked for licenced advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Insightful... I was curious about her, so I looked her up online. I discovered her website, and I must say that she seems knowledgeable. I sent her an email outlining my goals. I appreciate you sharing.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My husband and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $760k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Stephanie Kopp Meeks ”, and she's is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field. Most likely, her deets can be found on the net, so you can confirm yourself.
Insightful... I curiously looked up her name on the internet and I found her site and i must say she seems proficient, wrote her an email outlining my objectives. Thanks for sharing.>
According to your video, I hit top 10% in my 30’s. I was forced into retirement in my early 50’s. Three years in, I’m still easily in the top 10%. But I have never felt “rich” for a second. Fortunate, stable - yes. I still worry and budget. Between healthcare and insurance in my area, I worry. The point about living within your means is the best point.
you have options. the benefit of living, working, saving, and investing in a developed country allows you to either 1) move to a lower cost of living US State, or 2) move to a developing country like Mexico for example...wherein your dollar will go a long way.
I hit the target in my 40’s and switched to part time work at 50. Hoping to fully retire at 60. You still need to have insurance. I am far behind many of my friends who retired at 50 with 5-10 million.
I spent the majority of my life living between $16-$22k, plus several years well below the poverty line. I’m still VERY close to the number you mentioned to my age bracket. Living below our means and investing are arguably the most important thing. Basically anyone who wants this can do it. You got this 💪🏻
Should have strived to improve your job skills , take on more responsibilities and earn more. Saving is important but spending small itself is not enough.
My wife and I are in the top 10% at 30/33 years old. We did it by buying a 1bd condo when I was 27, which appreciates by more than it costs per month. We max out our 401ks in target date funds. I used my company's ESPP for additional investing. We don't touch crypto or meme stocks.
I was in the top 10 in my late 50s. Fell off a little there. I do have some rental property it generated some income but not to in capital appreciation. In my 60 I accerated my growth in the stock market. Retired at 65, but my total assets has not stopped rising, but continues to grow.
Who you marry has a lot to do with how much you will have when you get older, if your spouse is serious about investing than you have a good chance of being wealthy, but if they are spenders, you might have a problem, also divorce is very expensive and can put a dent in your savings. I married a school teacher and the good part about this is most teachers get a full pension after 30 years with benefits, this has worked out well for both of us!
Very informative. I continue to be amazed with what difference Compound Interest can have on investments and why it's so important to start saving when you are still young. Love your content!
I was briefly in the 30-35 age group with home valuation and 401k. 8 years later I haven't made much progress so I'm out of the club. But I have nearly zero debt so that's neat at least.
In the top 10 for my age bracket and already surpass the next two brackets and still feel like it’s not enough. Completely debt free for over 5 years and still budget every dollar.
I hope young people can understand how important this video is and how important it is to start investing at an EARLY AGE. No matter how much debt you have, first pay yourself at least 10% and invest that money. however if you have a debt that requires you to pay interest, make sure your investment yields more than that otherwise try to finish that dept first.
I'm in the top 10% of my age bracket and the next age bracket up as well! Glad to know I'm doing well but can't beat the feeling that I could be doing better. I should stop comparing myself to others and focus on my own progress. Easier said than done though.
That line of thinking is likely the cause for why you are in your current position. If you already thought you were well off 10 years ago, you likely wouldn't have put in the same efforts. As long as you are enjoying your current lifestyle and aren't burning out, there's not much reason to dial it back anytime soon. Keep up the great work!
I'm age 22 with a net worth of $150,000. I got paid to go to college, got a pretty good job while still in college, finished a year early and immediately got a 70k a year job with my employer.
The summary at the end reflects my perspective: 1. Pay yourself first. 2. Live frugally. 3. Save regularly. 4. Invest wisely. 5. Avoid debt. 6. Have a plan. 7. Stay the course. Although it is a great achievement, I would point out that one shouldn't feel bad if he or she is not in the Top 10% of Wealth. Having enough money to be financially secure is the actual goal.
@@Xspeedspec I'm not in the Top 10%. I've made every mistake there is, but I've still been able to reach financial security. I've learned the way the lessons that Chris shares. I'd *like* to be in the Top 10%, but I don't begrudge anyone who is.
So are these the median net worths of the top ten per cent of each age group - or are they the lower threshhold amounts separating the top 10 per cent from the rest of the population? Are pensions owed to employees, 401k etc counted in this?
Based on the language I'd assume it's the bottom threshold and that 401k is included. Probably not pensions as those are rare , especially now and the not always thought of as lump sum but as a payment. This last part is purely guessing. The other parts I'm going on the terms he used.
Either there was a math error or some major commentary was missed: from 40-55, the numbers really flattened out, but then for 55-60, they suddenly almost double. I’m not saying it couldn’t happen that way, especially if cash value of pensions is excluded until they are actually realized, but that itself would be a pretty significant piece of information that deserves mention.
I turned 60 two months ago and have a net worth of around 6.5 million. Looking back on my net worth in my early 50’s I think I was a bit higher than what this video states but started getting into some high return investments shortly thereafter and think I have accumulated most of my wealth in the last 3-4 years.
I have been asked for financial/investing advice many times. Your outline is exactly right and all one really needs to do. TIME and consistency are absolutely crucial in equities investing (i.e. S&P 500 or similar broad, cheap ETF) and NEVER SELL....NEVER.
It is crazy to me that a 41-45 year old who has $722k in net worth, that increases to $1.173 million for 46-50 (which is a 62% increase), but then only increases only 4% from 51-55. I get that most 46-50 year olds essentially have no debt, and have maximized their earning potential, but that jump seems improbable both in dollars and percentage, especially given most people start reallocating investments to less risk at that point in their lives.
Im in that space. I cant take as much investment risk as I did while working. That means more corporate and gov bonds and less in the stock market and less or no rental properties. Still, having 50% to 60% in stocks should allow your net worth to keep increasing. There is also the spending on vacations and gifts and charities. These are important to me and still increasing my net worth means im not spending too much.
I'm 55 and at the 10% mark. At 19 I had $800 in my checking account from working after school. Paid for my fathers funeral because he hadn't saved any money. So I inherited debt. I saved heavy in my 30s by adding to my 401k with all of my overtime, bonuses, raises, or any extra money at the end of the month. I also went to college at night or whenever I could. I have never owned a fancy car, boat or RV. Always tried to live within my budget. I never put anything on my credit card I couldn't pay off at the end of the month. I saved for five years for my first new car and paid cash...a Honda Civic at 43 years old. Ha HA! Big spender. Live within your means, on a budget, and strive for bettering your work life. You can make 10% mark! At 58 I will retire and buy a used RV. 🙂 I'm pulling for you! Save early!
At the time it wasn't easy for an average man to invest savings. This was before computers. But we did get a nice interest on our bank savings back then.@@geraldbennett7035
I just got out of the negative at 26, and surpassed a million at 31. However, my wife and I made 250k combined and lived simple, invested most of our money before having kids. House and everything is paid off, now just letting our investments grow.
Very true. I realised people are alike and different on many things. I've studied finance and insurance in cegep (a step before uni in quebec , canada) and very early on I realise that I would need to save 100k to really improve my finances. I've been watching ytube video about people miles from my hometown and all most all of them that I've studied similar field and are interested in personnal finance come to the same conclusion. The first 100k is the hardest the rest is easy. Most get to that point by age 27-28. Just as I've did. It's very interesting !!!
I'm 40, net worth approximately $750k. I tell people if I have 2M in my 401k at 55 it's gonna be really hard for me to come to work. The best thing I ever did financially was take the advice of a coworker and invest as much as I could afford to. I've consistently saved 25% of my income for over a decade. I've been cash poor a few times but I've pulled through and the investment has always paid off. When retirement planning remember the 4% rule. Plan on living on 4% annually. Every million you have is $40k a year in income.
I try to get my son to do what you talk about: save as much as you can when you are young and enjoy the compound interest. You're doing very well and I believe you could hit the 2M by 55. That said, inflation will mean that the $80k you get using the 4% rule then will probably be comparable to about $60k now in purchasing power. You may want to resist the urge to retire then and give your investments a few more years to compound before deciding to not come to the office anymore.
@masterchinese28 it's hard to do today. Sometimes my investing leaves me cash poor, I basically only keep enough to pay living expenses. The key for me will be getting my house paid off. You're definitely right about the inflation and seeing the effect of compound interest first hand is mind blowing. Going from 2m to 3m would only take me a couple years based on my last 10 years (8%) performance. I hope your son takes your advice. I know how tempting an overly nice house or a new car can be when you start making good money.
Informative but at the same time I find these stats here (and elsewhere) to be a bit ambiguous. Is this individual or household net worth, and exactly which asset classes are counted? Furthermore, not all 'net worth' is worth the same. $500k equity in your home is worth far more than $500k in your 401k plan as the latter has a massive deferred tax liability and has severe limitations on leveraging up or borrowing against. It feels as if apples are being compared to oranges in many cases. It might be more interesting to know what net worth is within these brackets without 401k/IRA (or at least in a separate bucket) to better understand how your financial health really stacks up. At least this breakout has 4 year increments. Many of the others I've found are using 10 year increments and a lot can happen in 10 years
ignore the trillions of dollars in 401ks because it allows people to defer the taxes on their savings? I can draw from my 401k at will but would have to borrow money at interest on my equity to spend it.
I'm 57. Started investing 10- 15% of my income at 18 and every month since then. Bought my first house at 24. I'm in my 3rd house. It was paid off 14 years ago. Not sure where I went wrong, but my net worth isn't where it should be if I was in the 10% bracket. I'm still in a good spot financially and quite proud of where I am and will retire in 2.5 years. I'm just curious if this scenario takes into consideration the raising of kids and all the costs associated. Could it be the top 10% never had kids?
are you counting your house in your net worth? if not take 85% of fair market value and add in. If this doesn't do it perhaps your house exspenses and living exspenses are a bit high.....high realestate tax can be a killer
I went from deep school loan debt to well within the 10% and even managed to have two kids! But I am very frugal with most of my daily expenses. Having savings during the financial crisis meant that I could swoop in and pick up a couple of properties when they were cheap. That did wonders for my net worth, but did nothing for my lifestyle. I still live on less than my take-home pay and save so I can be ready for the next opportunity (market crash) when it comes along.
Two kids alimony two divorces and sitting at 2.3mil. Rentals was my saving grace. First wife left after the housing crash. Signed over all the rentals that were under water. I kept them. Retired at 54
seems unreal. According to this stats, I should be living like a king. But I still buy things on sale, no high end cars nor high end restaurants. Definitely, I won't be paying for golf club dues.
Well, crap, I was feeling pretty good right until you got to my age group (56-60). I'm kinda short but not crazy short. Welp, gotta figure out how to do better. WAIT. It dropped for age 60-65. I'm gonna make it!!!
According to your chart I am in the top 10%. I don't feel I should be in the top 10%. My house alone is worth 1.7M with over 1M in retirement. No mortgage, no car payments just monthly bills.
At 31, I finished grad school with $80k in debt and all of my belongings were put into two suitcases and a backpack. I headed overseas by selling my old VW to my brother for $2500. I struggled at first, but eventually got a decent, middle-class job. I still drive my Ford Focus hatchback that I bought in 2012. (The only new car that I have ever bought) I drive up to three hours a day to get to/from work so I can save on living costs. I do splurge on the occasional trip or getting a foot massage, but living within my means is my life principle. This summer my new apartment will be completed, and it will be my sixth property. Unlike most of my other properties, this one will be paid off completely. I've never made more than $160,000 in a year, but I've been able to accumulate a net worth of nearly $2.5M since leaving grad school almost twenty years ago (mostly in real estate). I doubt my work income will change much in the coming years, but I am convinced that I can hit $5M net worth by 60 if I continue to live on less than I take in and invest strategically. It's nice to be able to do work that I like, and I can be assured that I'll be actually able to retire comfortably someday. Discipline and sacrifice pay off in the long run.
whats interesting is how quickly it accelerates between the 51-55 group and 56-60. There's something going on there and its more than just compounding of investment earnings and wage increase. Thats less than a 10 year span and a 100% increase. $1.2mil to $2.45mil. It would be interesting to know what the market did in that span and if that even achievable in say the next 10 years.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
This always came as common sense to me and it has paid off. Unfortunately trying to get most people to apply these principals or even take the time to watch and understand this video is difficult. Most people take less interest in their financial wellbeing then what their choice for dinner will be tonight.
I’m 21 and have 270k, no debt, paid off car and paid off house. Very flukey luck with being born into a wealthy family, ultimately people need to be financially responsible so they can provide their kids with great opportunities.
Getting advanced degrees really skews the timeline. My wife and I are dirt poor asian students when we came to America. When we finnally got our doctorates, we had negative $250k in networth combined, far behind our age group. But education really paid off, with the traditional Asian habit of savkng and investing, we have more than the top 10% of any age group just 14 years later (and 3 children too). This is why we love America, so fair to those who are willing to study and work hard. It's is truly the land of the American Dream.
The “average” net worth by age is not a good representation of real wealth - it’s greatly distorted by a small number very wealthy people. A more realistic view would be to use “Median” (the middle net worth) then these numbers would be far lower & more representative of the population.
If your investments are worth 100k when you’re 26-30, in 20 years (without adding any more money to that account), you should be worth 800,000 dollars by age 50. (Doubles every 7 years). This is low balling it too. It would likely be in the millions, especially if it’s in a safer mutual fund
While I agree that a house and car are part of net worth I would love to see a study that just uses liquid assets like savings accounts, 401Ks, IRAs, brokerage accounts , CDs and the like. Housing value varies so much by region and can often be a drain on income when one considers maintenance and taxes.
52 and an over the number for my age group. Hard to believe the number doubles for 56 to 60… wondering if I’ll stay in the 10 percent by the time I retire
The biggest problem is health insurance and copayment. Many have sufficient money to live but for the unknown healthcare costs. This is the tragedy in the US.
If we are married, should that still be multiplied by two to get at net worth numbers? We are retired and married with zero debt but fall just short of these numbers if we have to multiply your individual numbers by two.
I don't think the number has anything to do with being married or not. Obviously, you have some more expenses with two people, but the housing expense is the same. You also have two people who could work if they want to and two people potentially collecting social security.
Nice video. For clarification, it's worth calling out that I believe the author is talking about HOUSEHOLD net worth - not just individual. Can you confirm?
Woo-Hoo! I'm in the top 10% in the 71-75 age group.. The cutoff is 2.1M and we're at 3.5M. Oh wait, do you count combined assets for married couples in the total? If we have to split it 50/50, then I'm not in the top 10%. :(
Thanks for sharing this video. I was surprised at the figures; I thought they’d be higher. Someone asked already if these figures are for an individual or a household. I suspect an individual. Thanks too for deleting bot comments. Given the topic, I suspect you’re plagued by bots!
Not that surprising considering a bulk of net worth is just owning a house. It's surprising how many people have a 500k networth from owning a house but also don't have a single dollar invested in any type of investment account outside of of a company 401k.
It amazes me how many bots come in to these comments sections. “Go talk to so and so”. Save, invest in index funds, invest in ETFs. You don’t need to pay 4% to Claudia or James.
With wealthy disparity being what it is, seems like median net worth would be a better indicator of where a person stands than the average which will skew results high due to a relatively few very wealthy people. Not really informative.
It’s interesting that real estate, specifically owning a primary is such an important element. Yet few people talk about magnifying this aspect. Everyone just wants you to invest in the stock market.
Most folks don’t have the income to cover negative cash flowing property - but I do agree, max out your borrowing for capital growth potential, then invest excess cash flow when you can’t get any more “good debt”… high quality assets that have scarcity (land in popular cities) will have both capital and income growth, offset by a principal bound debt. Compounding on both the growth aspects and the fixed notional debt amount gives huge cash on cash returns…
The net worth of your primary residence is important, but its not something you want to tap into unless you don't have a choice. Owning a business is one of the best ways to build wealth. When you buy stocks you are also buying a fraction, albeit very small, of a business.
You should clarify weather pension should be included as part of net worth or not. It seems split by google research. Also, clarify between median and average net worth; they are very different
The observant will notice that these numbers don't make a lot of sense. I mean, if you are at $500k at 40, with continued investments and compounding $1.2M at 50 is very low. If you are 40, then by the time you are 50 your peers in the top 10% will likely be closer to $2.5M. This is a good benchmark where you are now. It isn't a target for where you should be as you age to be in the top 10%. The other important thing to keep in mind with wealth building is that while buying a home can be a great help, it is also your largest problem. Have a $500k net worth, and it is all in your house? Well... You can't sell your home and plan to just live on the proceeds. That would be a huge tax burden in the year you sell, and you still need to live somewhere, so it is likely that you will have to buy a similarly priced home to keep at your living standards. You can take a heloc or mortgage out on your home, but then you have a long term debt that you need to make payments on, eating away at the interest gained by whatever asset you are gaining by taking out the loan. Still a potentially viable option, just not ideal. Also, housing appreciation isn't fantastic growth except in extreme circumstances. You are looking at 4-6% growth, almost entirely undone by property taxes and loan fees. Point is. Owning a home is way better than renting (unless you plan to move a lot), but don't make your home your largest asset. Buy the kind of home you would rent for your income level, and then invest the difference. The real growth of stocks is 10.5% over time, and rarely averages below 8%. That is about double the growth your home will give you, and with far fewer required yearly expenses to maintain it. And it is a lot easier to sell enough stock per month or year to live on without having to liquidate the whole thing like you need to do with a house. Home ownership offers a ton of advantages, but it should be at most 1/2 of your net worth unless you are just starting out. My personal goal is for my home to be 20% of my retirement net worth. It's not some amazing home, so I don't think it will be difficult. And if every 10 years I take out a new 10 year mortgage that I pay down to accelerate stock investments, then this should be more than possible even on an average income.
I was at about $260k at age 40 in 2005, and in the top 10% for then. That's pretty much like $500k in 2022. Follow the numbers going back, inflation-adjusted, with the age cohorts listed and the numbers make perfect sense. The video is talking about all these ages in 2022. I'm 57 now, but I wasn't 40 in 2022 nor 30 in 2022. You fix it when you say it's a target of where you should be based on your age in 2022 (now). You would have to inflation adjust it forward if you want to look forward.
By having Rental Houses (or similar) you can live off the Income (Rents) from the Rentals and leave any Stock Market returns to double over time! That’s what we are hoping to do!
@@Xspeedspec I’m sure it depends on where they are, do you still owe on your house, etc. Nothing you don’t know for sure! There aren’t any secrets in this Retirement Gig! Except the Power of Compounding which is no secret at all!
Depending on when you start working, what kind of career you are in among others make a big difference. I am close to retirement, i won't make 10%. I live below my means and I save every year. Still what you earn has a lot to co with it as well as what area of the country you live in. I am not disappointed as I have what I need and want. But you are basically saying this can be easy to achive. Under the best of conditions yes. Most people even the most frugal ones will have things in their lives that will keep them away. And why does everyone tell what the bottom savers/investors have and the top. Never the median.
I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?
The current market conditions may provide opportunities to increase revenues swiftly; however, experience is required to carry out such a plan.
Many people minimise the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm solvent. I looked for licenced advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
That's impressive ! I could really use the expertise of one of these advisors. Any chance you could recommend one?
Her name is ' Rebecca Noblett Roberts ' Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
@@sloanmarriott5 That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Insightful... I was curious about her, so I looked her up online. I discovered her website, and I must say that she seems knowledgeable. I sent her an email outlining my goals. I appreciate you sharing.
I'm not quite in the 10% (maybe top 20%) but considering that I had a negative net worth until around 37, I'm quite happy with where I'm at now.
Glad to hear it 👍
Well done. You should proud of yourself. I’m sure you are!
That is a heck of a comeback my friend. Well done!
31 now, almost debt free. Your comment brought me hope
40 and still negative, but making progress... 😩
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Mind if I ask you to recommend this particular coach you using their service?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My husband and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $760k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Stephanie Kopp Meeks ”, and she's is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field. Most likely, her deets can be found on the net, so you can confirm yourself.
Insightful... I curiously looked up her name on the internet and I found her site and i must say she seems proficient, wrote her an email outlining my objectives. Thanks for sharing.>
According to your video, I hit top 10% in my 30’s. I was forced into retirement in my early 50’s. Three years in, I’m still easily in the top 10%. But I have never felt “rich” for a second. Fortunate, stable - yes. I still worry and budget. Between healthcare and insurance in my area, I worry. The point about living within your means is the best point.
you have options. the benefit of living, working, saving, and investing in a developed country allows you to either 1) move to a lower cost of living US State, or 2) move to a developing country like Mexico for example...wherein your dollar will go a long way.
Because you are smart enought to know how easy it is to be broke.
I hit the target in my 40’s and switched to part time work at 50. Hoping to fully retire at 60. You still need to have insurance. I am far behind many of my friends who retired at 50 with 5-10 million.
Its really not hard to earn, save and invest. Most people wont however. Its too easy to be on welfare and handout programs.
I spent the majority of my life living between $16-$22k, plus several years well below the poverty line. I’m still VERY close to the number you mentioned to my age bracket. Living below our means and investing are arguably the most important thing. Basically anyone who wants this can do it. You got this 💪🏻
I call bullshit
Should have strived to improve your job skills , take on more responsibilities and earn more. Saving is important but spending small itself is not enough.
My wife and I are in the top 10% at 30/33 years old. We did it by buying a 1bd condo when I was 27, which appreciates by more than it costs per month. We max out our 401ks in target date funds. I used my company's ESPP for additional investing. We don't touch crypto or meme stocks.
@ 54 my net worth was about 1.1 million, my highest take home to date was under $35,000.
You have made some very good investments! Congratulations
Very nice. You're saying you accumulated that much while never making more than 35k in a year?? That's inspiring.
Congratulations… You obviously know how to budget. Good work.
@@sdean4816guarantee it was real estate
Congratulations 🎉
I was in the top 10 in my late 50s. Fell off a little there. I do have some rental property it generated some income but not to in capital appreciation. In my 60 I accerated my growth in the stock market. Retired at 65, but my total assets has not stopped rising, but continues to grow.
Anyone who thinks student loans, mortgage, and car loans shouldn’t count against their net worth are explaining why they will never be wealthy.
Who you marry has a lot to do with how much you will have when you get older, if your spouse is serious about investing than you have a good chance of being wealthy, but if they are spenders, you might have a problem, also divorce is very expensive and can put a dent in your savings. I married a school teacher and the good part about this is most teachers get a full pension after 30 years with benefits, this has worked out well for both of us!
Very informative. I continue to be amazed with what difference Compound Interest can have on investments and why it's so important to start saving when you are still young. Love your content!
Eye opening for sure! Thanks for watching 😁
This should be taught in every school
Yes, Einstein noted that as well
@@ChrisInvests Even they dont teach this in Harvard
I was briefly in the 30-35 age group with home valuation and 401k. 8 years later I haven't made much progress so I'm out of the club. But I have nearly zero debt so that's neat at least.
Save more and INVEST it. It takes years but you can accumulate wealth simply because soooo many people wont.
Important information is missing.
Are the numbers per individual or per household?
In the top 10 for my age bracket and already surpass the next two brackets and still feel like it’s not enough. Completely debt free for over 5 years and still budget every dollar.
I've heard that no matter how much you have it never seems like you have enough
Are the numbers cited in this video (I.e. net worth) based on the individual or the combined totals of a married couple?
I hope young people can understand how important this video is and how important it is to start investing at an EARLY AGE. No matter how much debt you have, first pay yourself at least 10% and invest that money. however if you have a debt that requires you to pay interest, make sure your investment yields more than that otherwise try to finish that dept first.
Depends… if you have high interest debt. Definitely pay that off first before investing.
I'm in the top 10% of my age bracket and the next age bracket up as well! Glad to know I'm doing well but can't beat the feeling that I could be doing better. I should stop comparing myself to others and focus on my own progress. Easier said than done though.
That line of thinking is likely the cause for why you are in your current position. If you already thought you were well off 10 years ago, you likely wouldn't have put in the same efforts. As long as you are enjoying your current lifestyle and aren't burning out, there's not much reason to dial it back anytime soon. Keep up the great work!
@@xaldath4265 Thank you!
There will always be someone richer!
@@ChrisInvests you can alweis aim at being the richest person on the planet.. in that case nobody would be richer ool
I'm age 22 with a net worth of $150,000. I got paid to go to college, got a pretty good job while still in college, finished a year early and immediately got a 70k a year job with my employer.
Glad things are working out for you 👍
I’m 22 with nw of 200k
I'm 30 with a 1.5 mil net worth. Had around 200 k at 22
Im 97 with a net worth of $547,456,791.21 but I’m dying soon so it doesn’t matter
24 nw 298k
I’m under pressure to grow my reserve that currently holds about $500k. I’m down by 20% already following the crash and I fear I could lose more.
I am sincerely committed to securing a stable financial future and am excited to participate.
It's because you suck
What crash are you talking about?
@@leonadams1053they are scammers
@@leonadams1053it’s a spambot
The summary at the end reflects my perspective:
1. Pay yourself first.
2. Live frugally.
3. Save regularly.
4. Invest wisely.
5. Avoid debt.
6. Have a plan.
7. Stay the course.
Although it is a great achievement, I would point out that one shouldn't feel bad if he or she is not in the Top 10% of Wealth. Having enough money to be financially secure is the actual goal.
stay the course of intercourse
Well said!
That’s true but also thankful I’m in the top 10%
@@Xspeedspec I'm not in the Top 10%. I've made every mistake there is, but I've still been able to reach financial security. I've learned the way the lessons that Chris shares. I'd *like* to be in the Top 10%, but I don't begrudge anyone who is.
So are these the median net worths of the top ten per cent of each age group - or are they the lower threshhold amounts separating the top 10 per cent from the rest of the population?
Are pensions owed to employees, 401k etc counted in this?
Based on the language I'd assume it's the bottom threshold and that 401k is included. Probably not pensions as those are rare , especially now and the not always thought of as lump sum but as a payment. This last part is purely guessing. The other parts I'm going on the terms he used.
No way it’s median. It’s averaged.
Either there was a math error or some major commentary was missed: from 40-55, the numbers really flattened out, but then for 55-60, they suddenly almost double. I’m not saying it couldn’t happen that way, especially if cash value of pensions is excluded until they are actually realized, but that itself would be a pretty significant piece of information that deserves mention.
You are right, something does not make sense for 56-60 which is nearly double the 50-55.
I turned 60 two months ago and have a net worth of around 6.5 million. Looking back on my net worth in my early 50’s I think I was a bit higher than what this video states but started getting into some high return investments shortly thereafter and think I have accumulated most of my wealth in the last 3-4 years.
I have been asked for financial/investing advice many times. Your outline is exactly right and all one really needs to do. TIME and consistency are absolutely crucial in equities investing (i.e. S&P 500 or similar broad, cheap ETF) and NEVER SELL....NEVER.
It is crazy to me that a 41-45 year old who has $722k in net worth, that increases to $1.173 million for 46-50 (which is a 62% increase), but then only increases only 4% from 51-55. I get that most 46-50 year olds essentially have no debt, and have maximized their earning potential, but that jump seems improbable both in dollars and percentage, especially given most people start reallocating investments to less risk at that point in their lives.
That is interesting. I wonder if it has something to do with divorce.
Early retirement . Medical issues as well as being conservative near retirement
Kids’ college tuition.
Im in that space. I cant take as much investment risk as I did while working. That means more corporate and gov bonds and less in the stock market and less or no rental properties. Still, having 50% to 60% in stocks should allow your net worth to keep increasing. There is also the spending on vacations and gifts and charities. These are important to me and still increasing my net worth means im not spending too much.
Could you please do a VLOG showing the top 15 and/or 20% by age? Thank you
I'll consider it!
I'm 55 and at the 10% mark. At 19 I had $800 in my checking account from working after school. Paid for my fathers funeral because he hadn't saved any money. So I inherited debt. I saved heavy in my 30s by adding to my 401k with all of my overtime, bonuses, raises, or any extra money at the end of the month. I also went to college at night or whenever I could. I have never owned a fancy car, boat or RV. Always tried to live within my budget. I never put anything on my credit card I couldn't pay off at the end of the month. I saved for five years for my first new car and paid cash...a Honda Civic at 43 years old. Ha HA! Big spender. Live within your means, on a budget, and strive for bettering your work life. You can make 10% mark! At 58 I will retire and buy a used RV. 🙂 I'm pulling for you! Save early!
just imagine how much more wealth you could have if you INVESTED your savings. Its a must do to be independent
At the time it wasn't easy for an average man to invest savings. This was before computers. But we did get a nice interest on our bank savings back then.@@geraldbennett7035
I just got out of the negative at 26, and surpassed a million at 31. However, my wife and I made 250k combined and lived simple, invested most of our money before having kids. House and everything is paid off, now just letting our investments grow.
Sounds like I am in top 10% when looking at net worth although mine went down quite a bit in the last 4-5 months due to housing prices cooling off.
I like to list my house for the purchase price on my net worth statement so I don't artificially inflate my net worth statement.
Why? Your net worth is net worth which includes equity in real estate.
@@blaster-zy7xx Because my house is a use asset. If I owned a rental then I would factor in the equity.
First 100k is the hardest. I'll be 28 when I have 100k in savings. could've been sooner if I didn't mess around and waste 3 years.
Hopefully it’s mostly investment or it’s losing buying power
@@Xspeedspec I'd put it straight into a property for rental income
I think everyone (or a lot of people) feels that way 🤷♂️
Very true. I realised people are alike and different on many things. I've studied finance and insurance in cegep (a step before uni in quebec , canada) and very early on I realise that I would need to save 100k to really improve my finances. I've been watching ytube video about people miles from my hometown and all most all of them that I've studied similar field and are interested in personnal finance come to the same conclusion. The first 100k is the hardest the rest is easy. Most get to that point by age 27-28. Just as I've did. It's very interesting !!!
Are these numbers for individual people or families/couples?
Individuals
I'm 40, net worth approximately $750k. I tell people if I have 2M in my 401k at 55 it's gonna be really hard for me to come to work. The best thing I ever did financially was take the advice of a coworker and invest as much as I could afford to. I've consistently saved 25% of my income for over a decade. I've been cash poor a few times but I've pulled through and the investment has always paid off. When retirement planning remember the 4% rule. Plan on living on 4% annually. Every million you have is $40k a year in income.
Great coworker to have 😁
I try to get my son to do what you talk about: save as much as you can when you are young and enjoy the compound interest. You're doing very well and I believe you could hit the 2M by 55. That said, inflation will mean that the $80k you get using the 4% rule then will probably be comparable to about $60k now in purchasing power. You may want to resist the urge to retire then and give your investments a few more years to compound before deciding to not come to the office anymore.
@masterchinese28 it's hard to do today. Sometimes my investing leaves me cash poor, I basically only keep enough to pay living expenses. The key for me will be getting my house paid off. You're definitely right about the inflation and seeing the effect of compound interest first hand is mind blowing. Going from 2m to 3m would only take me a couple years based on my last 10 years (8%) performance. I hope your son takes your advice. I know how tempting an overly nice house or a new car can be when you start making good money.
The best reason to keep coming to work at 55 with $2M in the 401K is that it can become $5M by age 62 with continuing contributions.
Informative but at the same time I find these stats here (and elsewhere) to be a bit ambiguous. Is this individual or household net worth, and exactly which asset classes are counted? Furthermore, not all 'net worth' is worth the same. $500k equity in your home is worth far more than $500k in your 401k plan as the latter has a massive deferred tax liability and has severe limitations on leveraging up or borrowing against. It feels as if apples are being compared to oranges in many cases. It might be more interesting to know what net worth is within these brackets without 401k/IRA (or at least in a separate bucket) to better understand how your financial health really stacks up.
At least this breakout has 4 year increments. Many of the others I've found are using 10 year increments and a lot can happen in 10 years
ignore the trillions of dollars in 401ks because it allows people to defer the taxes on their savings? I can draw from my 401k at will but would have to borrow money at interest on my equity to spend it.
Is this per person or per household?
Per person
Let’s go top 10% baby! 💰
I'm 57. Started investing 10- 15% of my income at 18 and every month since then. Bought my first house at 24. I'm in my 3rd house. It was paid off 14 years ago. Not sure where I went wrong, but my net worth isn't where it should be if I was in the 10% bracket. I'm still in a good spot financially and quite proud of where I am and will retire in 2.5 years. I'm just curious if this scenario takes into consideration the raising of kids and all the costs associated. Could it be the top 10% never had kids?
Could be that they just made more money.
are you counting your house in your net worth? if not take 85% of fair market value and add in. If this doesn't do it perhaps your house exspenses and living exspenses are a bit high.....high realestate tax can be a killer
I went from deep school loan debt to well within the 10% and even managed to have two kids! But I am very frugal with most of my daily expenses. Having savings during the financial crisis meant that I could swoop in and pick up a couple of properties when they were cheap. That did wonders for my net worth, but did nothing for my lifestyle. I still live on less than my take-home pay and save so I can be ready for the next opportunity (market crash) when it comes along.
Two kids alimony two divorces and sitting at 2.3mil. Rentals was my saving grace. First wife left after the housing crash. Signed over all the rentals that were under water. I kept them. Retired at 54
@@castlerc Love stories with a happy ending!
I feel good about being in the top 10% of 18-25, only being 19. Hopefully that means ill be somewhat successful lol
That’s great… I’m 13 and lost 200 in crypto :(( lol
@@dom2681 heres a tip, invest in utility coins like chainlink, cardano, or algorand. and forget about it for 5 years
@@atomicgaming-eso2972 cardano and algorand being called "utility" LOL
I broke even at 30. so you are doing good.
@@bhaalgorn you sound uneducated on them
Out of curiosity, where did you get this data?
From a Business Insider study. I said that in the beginning.
Business Insider is pretty well known as an unreliable news outlet.
seems unreal. According to this stats, I should be living like a king. But I still buy things on sale, no high end cars nor high end restaurants. Definitely, I won't be paying for golf club dues.
Can you tell me please who the artist is who drew the caricatures for your video. I have a short book I need illustrated. Thanks, Mark
Congratulations on 100k subs
100k
Thank you, I appreciate it!
Woo, top 10% for 40 as 32! The grind is working
Great 👍
Is this for the US only or the world?
Is it household net worth or individual?
Probably individual and without home equity.
Well, crap, I was feeling pretty good right until you got to my age group (56-60). I'm kinda short but not crazy short. Welp, gotta figure out how to do better.
WAIT. It dropped for age 60-65. I'm gonna make it!!!
😂
Are these numbers per person?
According to your chart I am in the top 10%. I don't feel I should be in the top 10%. My house alone is worth 1.7M with over 1M in retirement. No mortgage, no car payments just monthly bills.
At 31, I finished grad school with $80k in debt and all of my belongings were put into two suitcases and a backpack. I headed overseas by selling my old VW to my brother for $2500. I struggled at first, but eventually got a decent, middle-class job. I still drive my Ford Focus hatchback that I bought in 2012. (The only new car that I have ever bought) I drive up to three hours a day to get to/from work so I can save on living costs. I do splurge on the occasional trip or getting a foot massage, but living within my means is my life principle.
This summer my new apartment will be completed, and it will be my sixth property. Unlike most of my other properties, this one will be paid off completely. I've never made more than $160,000 in a year, but I've been able to accumulate a net worth of nearly $2.5M since leaving grad school almost twenty years ago (mostly in real estate).
I doubt my work income will change much in the coming years, but I am convinced that I can hit $5M net worth by 60 if I continue to live on less than I take in and invest strategically. It's nice to be able to do work that I like, and I can be assured that I'll be actually able to retire comfortably someday. Discipline and sacrifice pay off in the long run.
Are the numbers for family assets or individual assets? How do you compare individuals with married couples.
You can't. That is why to say it is individual, and not household, data is to really miss the point.
Where did you get this figure from??
Business Insider...it says in the beginning
whats interesting is how quickly it accelerates between the 51-55 group and 56-60. There's something going on there and its more than just compounding of investment earnings and wage increase. Thats less than a 10 year span and a 100% increase. $1.2mil to $2.45mil. It would be interesting to know what the market did in that span and if that even achievable in say the next 10 years.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
I feel like i would be in the top 1% of my age group. im curious to see what those numbers are if you ever need another video idea. great content.
If you’re a multimillionaire in your 20s then you’re probably in the top 1%
@@2k3SteedaGT then yeah top 1%. Still would like to see the actual numbers though. Would be interesting content.
@@kchal0 How did you raise your net worth if you don't mind sharing?
@@kchal0 the data’s out there if you search for it
I call BS
Average net worth is skewed by the very rich. Median net worth is a better way to look at this.
This is the top 10 percent. Not median or average
If you are receiving a healthy pension and SS that easily covers all of your expenses, how should that affect a net worth calculation?
Is your numbers the Average or Medium? If average then those numbers are inflated due to wealth concentration in the top 1%.
This video is so good ! High quality content !
This always came as common sense to me and it has paid off. Unfortunately trying to get most people to apply these principals or even take the time to watch and understand this video is difficult. Most people take less interest in their financial wellbeing then what their choice for dinner will be tonight.
Is this only in US ?
Crazy how a late start or a couple of mistakes can result in being behind the mark by 10-15 years. 😭
I’m 21 and have 270k, no debt, paid off car and paid off house. Very flukey luck with being born into a wealthy family, ultimately people need to be financially responsible so they can provide their kids with great opportunities.
Getting advanced degrees really skews the timeline. My wife and I are dirt poor asian students when we came to America. When we finnally got our doctorates, we had negative $250k in networth combined, far behind our age group. But education really paid off, with the traditional Asian habit of savkng and investing, we have more than the top 10% of any age group just 14 years later (and 3 children too). This is why we love America, so fair to those who are willing to study and work hard. It's is truly the land of the American Dream.
Is this per US or the World, or some other country or group of countries?
By the numbers, looks like the US.
The “average” net worth by age is not a good representation of real wealth - it’s greatly distorted by a small number very wealthy people. A more realistic view would be to use “Median” (the middle net worth) then these numbers would be far lower & more representative of the population.
Is this an individual or household?
If your investments are worth 100k when you’re 26-30, in 20 years (without adding any more money to that account), you should be worth 800,000 dollars by age 50. (Doubles every 7 years). This is low balling it too. It would likely be in the millions, especially if it’s in a safer mutual fund
While I agree that a house and car are part of net worth I would love to see a study that just uses liquid assets like savings accounts, 401Ks, IRAs, brokerage accounts , CDs and the like. Housing value varies so much by region and can often be a drain on income when one considers maintenance and taxes.
Well im behind lol. Im 31, the biggest thing i did was graduate with no debt. I think that deserves a brownie point though 😅
Congrats Chris on your 100k subscribers! Hopefully we will reach there too 🙏🏽
Thank you! You'll get there as long as you're consistent
@@ChrisInvests Happy Labor Day 🎉
52 and an over the number for my age group. Hard to believe the number doubles for 56 to 60… wondering if I’ll stay in the 10 percent by the time I retire
The biggest problem is health insurance and copayment. Many have sufficient money to live but for the unknown healthcare costs. This is the tragedy in the US.
If we are married, should that still be multiplied by two to get at net worth numbers? We are retired and married with zero debt but fall just short of these numbers if we have to multiply your individual numbers by two.
I don't think the number has anything to do with being married or not.
Obviously, you have some more expenses with two people, but the housing expense is the same.
You also have two people who could work if they want to and two people potentially collecting social security.
Nice video. For clarification, it's worth calling out that I believe the author is talking about HOUSEHOLD net worth - not just individual. Can you confirm?
Even if someone believes a home or a car is a liability, they are still assets, specifically, "use assets."
Woo-Hoo! I'm in the top 10% in the 71-75 age group.. The cutoff is 2.1M and we're at 3.5M. Oh wait, do you count combined assets for married couples in the total? If we have to split it 50/50, then I'm not in the top 10%. :(
When it comes to pay and wealth there's a huge difference betweem 10% and 1%. For better or worse, its a testament to the wealth gap in this country.
Right in line for me. I need to be top 1% though 😅
Chris: "18-25 top 10% is $66,000."
Me: "well if I work 40 hours a week and only paid gas, I may get that much when I'm 28."
you must INVEST not simply save.
Is this talking about family income or personal income?
Is it current value of pension used in the calculation?
yes
Yes
Is that 10% in USA only?
I'm just outside 10%. I'm 38. 150k house equity. No debt. My other cash and investments is about 220,000. So that s 370k
Thanks for sharing this video. I was surprised at the figures; I thought they’d be higher. Someone asked already if these figures are for an individual or a household. I suspect an individual.
Thanks too for deleting bot comments. Given the topic, I suspect you’re plagued by bots!
Not that surprising considering a bulk of net worth is just owning a house. It's surprising how many people have a 500k networth from owning a house but also don't have a single dollar invested in any type of investment account outside of of a company 401k.
They need to diversify.
I am very fortunate to be in the top 10% of the 46-50 age range, but luckily I’m only 28! Thanks for the video guys.
Great!
im in the 18-25 group and I was surprised that it was not higher tbh but I guess we are only talking top 10%
Good video. The brackets were higher than expected, but I did get in the top 10% for my age👍
Great 👍 Thanks for watching.
cmon, don't bullshit me.
@@harjimbaugh4234 Afraid so, dude. You keep saving up now
Perhaps a dumb question, but as a married person, should I divide our net worth by 2 to get a realistic number?
Most married people combine it
It amazes me how many bots come in to these comments sections. “Go talk to so and so”.
Save, invest in index funds, invest in ETFs. You don’t need to pay 4% to Claudia or James.
With wealthy disparity being what it is, seems like median net worth would be a better indicator of where a person stands than the average which will skew results high due to a relatively few very wealthy people. Not really informative.
It’s interesting that real estate, specifically owning a primary is such an important element. Yet few people talk about magnifying this aspect. Everyone just wants you to invest in the stock market.
Absolutely 💯
There is more than one way to gain wealth.
Most folks don’t have the income to cover negative cash flowing property - but I do agree, max out your borrowing for capital growth potential, then invest excess cash flow when you can’t get any more “good debt”… high quality assets that have scarcity (land in popular cities) will have both capital and income growth, offset by a principal bound debt. Compounding on both the growth aspects and the fixed notional debt amount gives huge cash on cash returns…
The net worth of your primary residence is important, but its not something you want to tap into unless you don't have a choice.
Owning a business is one of the best ways to build wealth. When you buy stocks you are also buying a fraction, albeit very small, of a business.
You should clarify weather pension should be included as part of net worth or not. It seems split by google research. Also, clarify between median and average net worth; they are very different
Median is a form of average
This video is NEITHER median or average... It is TOP 10% i.e. the 90th percentile of all net worth households.
Median is middle average is average very different
The observant will notice that these numbers don't make a lot of sense. I mean, if you are at $500k at 40, with continued investments and compounding $1.2M at 50 is very low. If you are 40, then by the time you are 50 your peers in the top 10% will likely be closer to $2.5M.
This is a good benchmark where you are now. It isn't a target for where you should be as you age to be in the top 10%.
The other important thing to keep in mind with wealth building is that while buying a home can be a great help, it is also your largest problem. Have a $500k net worth, and it is all in your house? Well... You can't sell your home and plan to just live on the proceeds. That would be a huge tax burden in the year you sell, and you still need to live somewhere, so it is likely that you will have to buy a similarly priced home to keep at your living standards. You can take a heloc or mortgage out on your home, but then you have a long term debt that you need to make payments on, eating away at the interest gained by whatever asset you are gaining by taking out the loan. Still a potentially viable option, just not ideal.
Also, housing appreciation isn't fantastic growth except in extreme circumstances. You are looking at 4-6% growth, almost entirely undone by property taxes and loan fees.
Point is. Owning a home is way better than renting (unless you plan to move a lot), but don't make your home your largest asset. Buy the kind of home you would rent for your income level, and then invest the difference. The real growth of stocks is 10.5% over time, and rarely averages below 8%. That is about double the growth your home will give you, and with far fewer required yearly expenses to maintain it. And it is a lot easier to sell enough stock per month or year to live on without having to liquidate the whole thing like you need to do with a house.
Home ownership offers a ton of advantages, but it should be at most 1/2 of your net worth unless you are just starting out. My personal goal is for my home to be 20% of my retirement net worth. It's not some amazing home, so I don't think it will be difficult. And if every 10 years I take out a new 10 year mortgage that I pay down to accelerate stock investments, then this should be more than possible even on an average income.
I was at about $260k at age 40 in 2005, and in the top 10% for then. That's pretty much like $500k in 2022.
Follow the numbers going back, inflation-adjusted, with the age cohorts listed and the numbers make perfect sense. The video is talking about all these ages in 2022. I'm 57 now, but I wasn't 40 in 2022 nor 30 in 2022.
You fix it when you say it's a target of where you should be based on your age in 2022 (now). You would have to inflation adjust it forward if you want to look forward.
If you are planning for 8% pa returns going forward with valuations where they are I have some bad news for you
That is a lot of money for a single person. With needing to double it for a married couple that is a but load of money!!!
I made it! Still live below my means too.
By having Rental Houses (or similar) you can live off the Income (Rents) from the Rentals and leave any Stock Market returns to double over time!
That’s what we are hoping to do!
How many rentals do you have?
That's the only way forward
@@Xspeedspec sorry, Wife would kill me if I said anything but, less than 5 I’ll say!
@@duneme I heard that 4 rentals was key for financial freedom
@@Xspeedspec I’m sure it depends on where they are, do you still owe on your house, etc.
Nothing you don’t know for sure!
There aren’t any secrets in this Retirement Gig!
Except the Power of Compounding which is no secret at all!
Started late and charging hard to catch up. Could make top 10% before retirement.
In California, most homeowners are millionaires. That said, I still dont consider my house as an asset. I use cash flow as my measurement.
Odd slow down at age 50-51 then massive jump at 56.
Depending on when you start working, what kind of career you are in among others make a big difference. I am close to retirement, i won't make 10%. I live below my means and I save every year.
Still what you earn has a lot to co with it as well as what area of the country you live in.
I am not disappointed as I have what I need and want. But you are basically saying this can be easy to achive. Under the best of conditions yes.
Most people even the most frugal ones will have things in their lives that will keep them away.
And why does everyone tell what the bottom savers/investors have and the top. Never the median.
These numbers are achieveable in the United States for a lot of people. What's even crazier is when you look at it on a global basis.