The Average ER.org'er has $2.9M Net Worth, $84K/yr Spending, 3.4% Withdrawal Rate...

[Perryinva]

Income? OP was talking about spending I thought.

You are 100% correct. So except the pensions being well above 25% of income, I'm a drag on the averages. Actually, I didn't participate because I'm 30 months from retirement. I'm only predicting spending above 85k.

 

[ERD50]

Copied from the forum header, " Early Retirement & Financial Independence Community". I am not sure how you can have this type of forum and not discuss net worth and spending. It would be like joining a fishing forum and never discussing the fish you caught.

Thanks again for the data.

FN

Percentages work in most cases.

Absolute spending? "It depends" ™. There are people who manage a nice life (for them) on very little. Others would not be happy at that level. There is no right or wrong. But the % for a withdrawal rate is independent of amount.

It's about the process, not the amount (for most of us).

-ERD50

 

[brucethebroker]

Somebody is holding an extra 2+ million to average me out, apparently....how about a loan??

 

[RobbieB]

Sure. How about 1%? A month -

 

[HadEnuff]

This is one class where being average ain't too shabby.

 

[audreyh1]

This is one class where being average ain't too shabby.

 

[ERD50]

This is one class where being average ain't too shabby.

In most areas of my life, I've been thrilled if I'm able to achieve mediocrity!

-ERD50

 

[MarieIG]

I find the observations of OP interesting. I think he started a few of those polls. Anyway, I have no problem with anyone here touting about how well they've done. I'm happy for them. A large part of this forum is about managing finances, to the extent people want to, they should be able to talk about them without being afraid of being slapped down for touting.

 

[stepford]

That's why I find these sorts of polls useful rather than intrusive. By seeing how our financial situations compare to our fellow forum members we can get an idea whether their RE experiences will be germane to our own. While I would hope we all make our own RE decisions based on our own individual criteria it provides a substantial degree of reassurance to see that we (mostly) fall somewhere the comfortable center of the bell curve when it comes to all these financial parameters.

Conversely it's a useful warning signal if one finds one's financial situation departs too drastically from these averages.

 

[alaska55]

That's why I find these sorts of polls useful rather than intrusive. By seeing how our financial situations compare to our fellow forum members we can get an idea whether their RE experiences will be germane to our own. While I would hope we all make our own RE decisions based on our own individual criteria it provides a substantial degree of reassurance to see that we (mostly) fall somewhere the comfortable center of the bell curve when it comes to all these financial parameters.

Conversely it's a useful warning signal if one finds one's financial situation departs too drastically from these averages.

Really Only if you worry about keeping up with the Jones, How much is too drastically below 2.9 million NW. It takes about 1.87 million to be in the top 5%. It drops fast it only takes 428k to be in the top 20% and just shy of a million to be in the top 10%. I would say spend some of that NW and spread the wealth.

 

[pj.mask]

Lots of talk about 'humblebrag' but is it really? Here and bogle heads have had a number of these low net worth posts recently.

I'd rather not post my numbers/personal info but I do feel like using % does not give the best information (would you invest the same if you live on 24k a year vs 240k a year? Risk of loosing half has drastically different life outcomes).

There have been maybe 5 posts I have seen that did look stupid (usually I we are young and just started work earning 500k+ and rather than asking for real advice it's some kind of silly questions) but I just skipped to the next one. If you don't like the thread don't post and don't read it.

I'm here because I want to learn how to increase and protect my net worth to achieve independence. You doing the same does not impact me, good for you but don't know you and don't really care about your day to day life. I care about if I'm investing properly, if I have the right insurance, if I'm making the right tax moves, if I am maybe blind to risks or future costs, etc.

 

[Mo Money]

Perhaps there is some bragging going on occasionally, as there is on any forum and at any off*ce water cooler or neighborhood picnic. But for every moment of bragging on this forum, there are five moments of imparted wisdom from forum members.

The OP's summary of data, admittedly not complete and yes, not median, is still useful. It would be even better if it is further refined, and I hope it will be as time goes on.

I am glad the summary was posted. It should not discourage. Rather, it should encourage those with less that more is possible -- if more is wanted. And for those who do not have more (or who do not want more), this is still a forum where the philosophy of LBYM makes ER doable for people with a wide swath of NW levels.

In the OP's case, it's just a list of interesting data points, not bragging. Those who are discouraged might want to look at the info from another angle.

 

[whatnot]

Thank you Midpack for compiling the data. I have learned a lot from this forum and part of that is sharing information we would never share with others. I appreciate it when members post actual numbers. It gives me a good perspective on my planning for ER. I have run numerous calculators, created excel worksheets, etc. and this site has helped me gain confidence in my numbers. I especially like it when members give updates. I see my concerns expressed by many others as they move towards ER, struggle with OMY, and then pull the trigger. So thanks to all!

 

[audreyh1]

Let's see....

$2.9M net worth
$84K/yr spending
3.4% WR
11 or fewer mutual funds
house < 15% of net worth
a pension that provides 25% or more of income

Personally, I do not suppose that I am within 10% of any of these values.

Typical INTJ, always the outlier....

Except there are so many INTJs on this forum it's hard for you to really be an outlier.

I'm an INTP, so I'm an outlier.

 

[ERD50]

That's why I find these sorts of polls useful rather than intrusive. ...

How can they be "intrusive" if they are voluntary? I mostly skip them (unless they are just for fun).

By seeing how our financial situations compare to our fellow forum members we can get an idea whether their RE experiences will be germane to our own.

That's extremely questionable. Most of these polls don't include enough info to be meaningful. Someone with pensions/SS greater than their expenses don't need any NW beyond cash flow. I don't think anyone's RE experiences are all that useful to our own, w/o a FULL understanding of theirs, and a means to adjust to ours.

As has been pointed out, a pension of $40,000 COLA is equivalent (to the retiree - not their heirs) to $1M in net worth @ 4% WR. Most polls don't take that into account.

While I would hope we all make our own RE decisions based on our own individual criteria it provides a substantial degree of reassurance to see that we (mostly) fall somewhere the comfortable center of the bell curve when it comes to all these financial parameters.

Again, w/o knowing everything that makes up that curve (COL, pensions/SS, and expectations of a retirement lifestyle), very little can be gained, IMO.

Conversely it's a useful warning signal if one finds one's financial situation departs too drastically from these averages.

There are a few posters here who I'm certain are far from these norms, who seem to be very satisfied with their retirement (and I truly do not think they are just 'rationalizing', though some others might) . Numbers don't tell the whole story.

If a person can manage an enjoyable life on $42K per year, why in the world would they delay retirement until they saved twice as much, just because some amateur polls showed that poll respondents here spend 2x that amount?

And conversely, if your idea of a nice retirement is lots of travel, or other expensive activities, why limit yourself?

Time for people to think for themselves, and not play "keeping up with the Joneses".

-ERD50

 

[FlaGator]

Really Only if you worry about keeping up with the Jones, How much is too drastically below 2.9 million NW. It takes about 1.87 million to be in the top 5%. It drops fast it only takes 428k to be in the top 20% and just shy of a million to be in the top 10%. I would say spend some of that NW and spread the wealth.

Keeping up with anyone has never been my goal, and the least persuasive argument someone can make to me is that "everyone else is doing it". While individual circumstances vary, it is reassuring to me to know that I'm broadly in a range that can be made to work.

Think it is nice a forum member with better stats skills than I have aggregated all of this and put it out as a reference.

 

[Totoro]

$2.9M net worth -- off by integer multiple
$84K/yr spending -- off by integer multiple
3.4% WR -- in the neighborhood
11 or fewer mutual funds -- off by much (less)
house < 15% of net worth -- NaN / division by zero: I rent
a pension that provides 25% or more of income -- off by much

Typical INTJ

Indeed. Although I sometimes test as INTP too. Also, I played D&D and just finished binging on BG2.

 

[flintnational]

Caddy Shack provides important advice on how to handle numbers.

Judge Smails: Ty, what did you shoot today?
Ty Webb: Oh, Judge, I don't keep score.
Judge Smails: Then how do you measure yourself with other golfers?
Ty Webb: By height.

After 37 years it still makes me laugh.

FN

 

[HadEnuff]

I checked the acronyms page, and didn't see INTJ, or INTP....

enlighten me, please.

 

[Winemaker]

Search INTJ in the google search above, it has to do with personality types.

 

[Midpack]

That's why I find these sorts of polls useful rather than intrusive. By seeing how our financial situations compare to our fellow forum members we can get an idea whether their RE experiences will be germane to our own. While I would hope we all make our own RE decisions based on our own individual criteria it provides a substantial degree of reassurance to see that we (mostly) fall somewhere the comfortable center of the bell curve when it comes to all these financial parameters.

Conversely it's a useful warning signal if one finds one's financial situation departs too drastically from these averages.

+1, that was all the thread was intended to address, for anyone interested. If it's not your cup of tea, ignore it. Keeping up with the Joneses wasn't the purpose at all, that's a self inflicted issue anyway.

 

[Carpediem]

Was the screenshot removed? I saw it once but now it doesn't appear.

 

[imoldernu]

Short article from Motley Fool, bearing on the subject. Perspective.

https://www.fool.com/investing/general/2015/05/17/americans-average-net-worth-by-age-how-do-you-comp.aspx



Keep in mind that 1/2 (median) of your American neighbors are below the average quoted in the article.

A little more detail... by age.... here:

https://wallethacks.com/average-net-worth-by-age-americans/

 

[LuckyDog]

Midpack, I appreciate your efforts and found the data to be of entertainment value. We are in the ball park of the numbers that you showed.

I am sorry that other members cannot take the numbers for what they are: Data. Data can interpreted in any way or be made to represent anything that you like...

 

[Car-Guy]

2.9M net worth -- beat that one easily
$84K/yr spending -- probably closer to double that most years
3.4% WR -- not sure, I've never tried to calculate it.
11 or fewer mutual funds -- Zero mutual funds
house < 15% of net worth -- More like less than 10%