For example I know of someone who is single at 40 with a mill, a career couple worth $400,000 at ages 31, or an executive couple 49 and 42 worth $1.9 mill. Are each of these people typical, above average, or below?
What are people on this threat worth and at what age? Net worth is the question, not income, or investment scenarios.
This would be interesting to set the stage for those who need to reach some goals or relax and chill about approaching ER.
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Net worth is my main indicator of how we are doing.
The "hope" right now is to keep it where it is
indefinitely. Anyway, I have been married for 37 of the last 40 years, so my numbers are for 2 people. I peaked
in 1998 (year of my divorce - nice for my ex.) at about
500K. It was roughly a 50/50 split of assets, so I started full
retirement with about 250K at age 54. I know this sounds incredible, but it was not even all that hard to do. My net worth went up every year until 2004.
I find the Fed numbers WAY off (too low). Given those numbers, NOBODY would be ERing. *
Actually these numbers may be too high! - They might include home equity.
This is one reason why I also believe that Social Security is not a 'Crisis' - And I agree with you NOBODY (Or a very small minority - Us ) Will be retiring. The masses will continue to work and pump money into the SS system.
Those net worth numbers look HIGH to me based
on similar studies I have seen. Remember, those are
the median. Anyway, I don't find them the least
surprising.
For example I know of someone who is single at 40 with a mill, a career couple worth $400,000 at ages 31, *or an executive couple 49 and 42 worth $1.9 mill. *Are each of these people typical, above average, or below? *
Let's do further analysis of your examples and assume that each person starting 'working' at 23 years of age.
1. single at 40 with a million: has essentially 'saved' or accumulated $58,823/yr (1 million divided by 17 years of work)
2. career couple worth $400,000 at 31: has 'saved' and accumulated $50,000 together ($400,000/8 working years) or to compare apples and apples...$25,000 each;
3. executive couple 49 and 42 worth $1.9 mill: has 'saved' and accumlated $73,076/yr together and approximately $36,000/year each (the individual calculation is more difficult to calculate given the differences in age).
Hence to sum up your 'friends', your single 40 year old is accumulating the most on an individual basis($58,823/yr), while the executive 49/42 couple accumulating the most together at $73,076/yr.
All in all, I think they are doing very well indeed!
What are people on this threat worth and at what age? Net worth is the question, not income, or investment scenarios.
Income is definitely a big factor. *If the "basic" cost of living is $x in a place and a person makes exactly $x they have nothing left over to save or invest. *If that person instead makes $5x and even if they live better than "basic", perhaps at $2x, then they have $3x per year to save/invest. *They can probably retire early if they want. *The person making $x / year will not be able to ER even if *they are able to cut below basic living costs. *If you want to ER you will need to make a lot of money and live like you are not - how quick to ER depends a lot on the ratio of income to expenses.
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The numbers I posted do not include non-financial assets, such as vehicles, equity in primary residence, non-residential property, etc., only assets such as CDs, mutual funds, stocks, bonds, life insurance and cash accounts. I couldn't tell if they had taken consumer debt into account.
The data comes from the triennial Survey of Consumer Finances that is sponsored by the Fed and conducted by the University of Chicago. How realistic the numbers seem to you depends on how much you trust surveys (remember the exit polls on Nov 2?)
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The numbers I posted do not include non-financial assets, such as vehicles, equity in primary residence, non-residential property, etc., only assets such as CDs, mutual funds, stocks, bonds, life insurance and cash accounts. *I couldn't tell if they had taken consumer debt into account.
The data comes from the triennial Survey of Consumer Finances that is sponsored by the Fed and conducted by the University of Chicago. *How realistic the numbers seem to you depends on how much you trust surveys (remember the exit polls on Nov 2?)
Knew those numbers were LOW! Net Worth is Net Worth. Principal Residence, Cash, Investments, Stocks, etc, etc.....
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Posts: 11,355
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What is a reasonable net worth for one's age?
This question is interesting in an idle water-cooler converstaion way. But you don't live on net worth- you live on income and the security of that income. As someone pointed out on another thread, plenty of people with $2m net worth have to live more carefully than a couple with two generous and secure pensions and subsidized healthcare.
That couple could have a very low net worth,and still live great and sleep well.
There is nothing like a government pension with a shot of COLA!
In fact, I sure wish I had figured that out earlier in life.
Mikey
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Don't government pensions come from the same place as SS - the taxpayer.
Exceptions - ??teachers and certain 'funded' pensions locally??
Curious whether some are considered - er ah - more better than others.
Most come from somewhere "else", i.e. NOT the federal government. and they are funded by a combination of employee and employer contributions.
And YES, they very greatly, I've been investigating that very subject as it is very dear to my heart, and have already found differences of 500 percent in the benefits between different government entities in different parts of the country (for a given salary level).
at about
Quote:
) Will be retiring. The masses will continue to work and pump money into the SS system. 
Don't government pensions come from the same place as SS - the taxpayer.
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