What is the average portfolio?

[Time2]

Beware, comparison is the thief of joy! While interesting, all that matters is your individual circumstances (age, FI status, other income sources, expenses, etc). If I compared myself to this select group I'd probably feel very poor!

Well you could compare yourself to this, "And even if you have just $4,210 to your name, you’re still richer than half of the world’s residents."


https://www.cnbc.com/2018/11/01/how-much-money-you-need-to-be-part-of-the-1-percent-worldwide.html


"To make it to the wealthiest 10% in the world, you need to have an individual net wealth of US$138,346."

"For the 1%, the bar is US $1.147 million. Net wealth is calculated by subtracting debt from the total value of assets owned by a person, Stuff reported."
https://www.mpamag.com/nz/news/gene...p-10-wealthiest-in-the-world-heres-why/422802

 

[brett]

^+1

All good reasons why the 'number' is completely meaningless and the comparison exercise somewhat silly.

Why not move on to something like how many toasters does the average retiree own? It would be just as enlightening.

 

[SecondCor521]

^+1

All good reasons why the 'number' is completely meaningless and the comparison exercise somewhat silly.

Why not move on to something like how many toasters does the average retiree own? It would be just as enlightening.

Should we count toaster ovens?

How do we count 4-slice vs. 2-slice?

 

[OddGuy]

$3 - $4 million

 

[11522914]

I too track my portfolio and NW as a way of seeing if I'm ahead, behind or on target with my goals. It's like tracking your weight, or your track speed, or whatever you're measuring as part of an objective. Where it gets tricky is when you try to compare to others - that's a slippery slope for sure, usually leads to negative feelings.

+100

 

[marko]

I too track my portfolio and NW as a way of seeing if I'm ahead, behind or on target with my goals. It's like tracking your weight, or your track speed, or whatever you're measuring as part of an objective..

Would be a shame to NOT track one's progress and wake up and suddenly realize, at age 85, that there's nothing left.

 

[mn54]

Well that’s a fun one. I just plugged the numbers into FICalc. We could lose half our portfolio, cut spending by a third and still have a six figure retirement budget.

this sounds like one of those algebra test questions. lets see. if x= portfolio and y= spending, then 1/2x + 2/3y>$100,00.

 

[COcheesehead]

this sounds like one of those algebra test questions. lets see. if x= portfolio and y= spending, then 1/2x + 2/3y>$100,00.

You nailed it.

 

[Harris4crna]

Exactly.
We have two pensions that allow us a far greater income ability than what we have saved in IRA "portfolio"

SAME

 

[DrRoy]

The old poll was interesting, and while probably behind current valuations, still shows this group to be far above average in NW.

 

[brett]

Who cares about average net worth when they are considering retirement or early retirement? Certainly not us.

Our plans were divided into three. The first part financial, the second part was planning the first year of retirement travel, the third part was then what.

We could have cared less where we were vis a vis the average net worth. Of who?? Ssomeone who works and lives in Minot, SD or someone who lives and works in the SF Bay area??

Our financial focus was squarely on our cash flow projections, tax planning, estate planning, investment options long and short term, inflation, ROI net of inflation, travel costs, etc.

It was, and is, all about our financials and our ability to finance our retirement goals. Not someone else's.

 

[Time2]

Pensions and SS can mean a lot. You could have a low portfolio and high Pension and SS income and do quite well. Unfortunately my wife and I do not fall in that category. Fortunately we started saving early ( I was 26) and

managed to continue saving at a decent percentage for 37 years. We have no pensions and have lived under what our portfolio produces for 5 years, and in 6 months or maybe 18 months we will start SS, I'll either be 69 or 70yrs old.
It could be suggested that pensions or SS be treated as the 4% guide and given a 25X multiple as part of your portfolio. That would add another $1.5M to our portfolio, that was a warm cushy feel to it

 

[ERD50]

Who cares about average net worth when they are considering retirement or early retirement? Certainly not us.....

It was, and is, all about our financials and our ability to finance our retirement goals. Not someone else's.

Exactly!

-ERD50

 

[Koolau]

Pensions and SS can mean a lot. You could have a low portfolio and high Pension and SS income and do quite well. Unfortunately my wife and I do not fall in that category. Fortunately we started saving early ( I was 26) and

managed to continue saving at a decent percentage for 37 years. We have no pensions and have lived under what our portfolio produces for 5 years, and in 6 months or maybe 18 months we will start SS, I'll either be 69 or 70yrs old.
It could be suggested that pensions or SS be treated as the 4% guide and given a 25X multiple as part of your portfolio. That would add another $1.5M to our portfolio, that was a warm cushy feel to it

IOW you have "enough." That's all anyone needs in my humble opinion. Everything else is just gravy (Or perhaps insurance against the unexpected/unknowable.) YMMV