Poll: Net worth of people in their 40's

[SecondCor521]

I'm 37 now, so I didn't vote, but since NW growth is probably exponential, I could see a big difference between those who are 41 and those who are 49, and this poll has no way to distinguish. I think the differences would be particularly acute among FIRE-minded individuals.

2Cor521

[dm]

I knew paying off the house was wrong. My net worth would look higher in the poll if I could just convince the wife to move on the boat.

[HFWR]

Didn't answer cause I'm 50+, but I had $226,000 in my 401k on my last day as a forty-something...

[bssc]

I could increase my net worthy by taking out an HELOC and buying stocks with the procedes.

[Gone4Good]

Quote:

Originally Posted by firewhen Will people in their 20's see this same tripling (i.e. Dow 36,000 in 12 years)?

In all likelihood yes.

3x in 12 years is just about 9.5% per year . . . somewhat south of the long-run average equity return.

Here's hoping for average equity returns!

[audreyh1]

Quote:

Originally Posted by bssc I could increase my net worthy by taking out an HELOC and buying stocks with the procedes.

Only if the stocks go up in value.

Audrey

[Gone4Good]

Quote:

Originally Posted by audreyh1 Only if the stocks go up in value. Audrey

Heh, heh, heh. People always forget that leverage works the other way too.

[firewhen]

Quote:

Originally Posted by 3 Yrs to Go In all likelihood yes. Here's hoping for average equity returns!

I have always said that the key for our generation is a reasonable stock market return. I would be happy with 8-10% on average over the next 10 years. While this has happened over the long run, there are rough patches, and hopefully this will not be the case.

[bbbamI]

When I voted, I did not include the pension that DH will receive.

My question is, if you will be receiving a pension of $1k a month for life, would you consider $300k in your net worth? I'm assuming the $300k because if you had a SWR of 4% in this amount, it would equal $12k a year.

[wabmester]

Quote:

Originally Posted by bbbamI My question is, if you will be receiving a pension of $1k a month for life, would you consider $300k in your net worth? I'm assuming the $300k because if you had a SWR of 4% in this amount, it would equal $12k a year.

Yes, if it's COLA'd. If not, then use a multiple of 15X instead.

[bssc]

Quote:

Originally Posted by audreyh1 Only if the stocks go up in value. Audrey

I would have to lose everything. I didn't count my primary residence in the poll. If I mortgaged it to the hilt, took out 400,000, then lost 100,000, my net worth would be up $300,000 for the purposes of this poll.