I think too much real estate is a problem. Around here, that kind of money rents you an entire house 3 or 4 bedroom house. The “above average person” is loosely defined as someone who was a B+ or better student in high school, graduated from college (~35% of the American population), works hard, plays well with others, takes full advantage of their pre-tax retirement plans, saves additional disposable income, stays on top of their finances by utilizing free financial tools, expects nothing from their parents or the government and is not delusional. So we’re starting to be more aggressive with our savings from now on. We ascribed to the 1/10th rule for car ownership (heck, think it may have been closer to 5%) up until a year ago when we broke down and bought a new one…simply did not have time to keep patching together three cars with 100k plus miles on them. Agreed, these figures are realistic (he says at age 51 with two kids about to graduate college). I started working at about 25, my husband at 26. I think you will be happy with them once the tax free interest starts rolling in. I appreciate the insights and info. My wife and I are lucky as this bull market coincided with our highest earnings so far. All three tables take into consideration one or two stay at home spouses, depending on level of net worth. Notice how an individual pays a 37% marginal federal income tax bracket after $510,300, but a married couple starts paying a 37% marginal federal income tax above $612,350. I will also have to tell my stay at home fiancee to go get a high paying job. She was a teacher for 30 years and I was in pharmaceutical sales (no big time jobs, just regular everyday jobs).The trick of course is to save every month and continue increasing your savings percentage as your incomes increase. I purchased a short sale home in 2009 in Corona, CA for 309,000. Your top 16% person probably went to a top rated school where they paid top dollar for their education (even after grants etc). Add in a likely deductible of $5000 (e.g. Based on the stated (and assumed) assumptions, this should probably be renamed to “The Average Net Worth For The Above Average, Married & Early Retirement Focused Couple”. Comps have it slightly higher. I am fortunate to receive a 6% match plus another automatic 4%; my husband for the first time this year will be getting a 5% match. San Francisco’s high cost is offset by its high income. They declined further in the following years, but we were able to make significant additional payments to lock in a 30 Year fixed loan @ 3.375% in 2011. I could see it being harder for people in an area with lower salaries, but then again, they have lower expenses as well. So even though, our net worth as a couple meets your standards for above average. Im 42 and my wife is 31, do I go off my age or halfway between our ages to find out where we should be? Great! Thanks Adam! Here’s How To Fix Things, What To Do When Your Parents Don’t Like Your Guy, 5 Obvious Signs That Your Boyfriend Is Your Soulmate. Her analysis showed that there was no statistical difference between the incomes of men and women. Then again, everybody has a choice to move around the country. I currently have that home under contract for 325,000, and i put 18,000 into it for rehab. I love these charts but I think one of your main assumptions in putting together a joint net worth target is a bit off. Keep in mind, income includes money you may get paid by your employer through JobKeeper Payment. Save my name, email, and website in this browser for the next time I comment. wage job should i get work now. Don’t think it’s laughable at all, it’s for above average couples. I guess I need to start making more money if I’m going to fit into this mold. We are in our late 60s, and somewhat ahead of the last row in your first table. All Rights reserved, The Fool-Proof Way to Make Any Man Commit To You. I have to fight twice as hard to be seen as a STRONG LEADER and get promoted to that higher pay. If you are not yet, then sign up with Personal Capital. Absolutely. I thought we were on target (at least according to other sources I read). I’m a numbers person and have shown that the government doesn’t treat women equally b/c 1 + 1 = 1.21. Now that the RE market has heated up, I’ve been wrestling with the temptation to sell. Sam – I love your “Above Average” type posts. You’ll see in an upcoming post. -$61k=Vanguard Roth If I had a family earlier, I am almost sure my net worth would be several X what it is now (8 figures). 69% of people have less than $1000. Take care of and enjoy yourselves. Just a thought. Just remember that bonds are also close to all time highs, and the Fed is raising rates (hasn’t affected bonds much yet). For years, my only company sponsored retirement option – the Thrift Savings Plan for government employees – was limited to a Traditional IRA style account. I make considerably more than my husband and we both have college degrees. When we bought our house, it was more like 2.5X our income – we have come a long way in 5 years! With Personal Capital, you can track your cash flow, x-ray your investments for excessive fees, and make sure your retirement plans are on track. Plus, my boyfriend is 6 years older than me, so we don’t really fit into either of the categories :D. Kidding aside, I do agree that couples should work together to reach financial goals. Love your blog. If it was a movie I would definitely buy both copies on Blu-ray. That’s what the GF has you for! I also use Personal Capital daily and cannot imagine being clueless about my own net worth, taxes, and investments, but sadly many people are. I purchased my current house in 2008, near the bottom of the market, fixed it up and should be able to clear $500/month profit on it, plus the tax benefits. How can I know if that is right cause I feel poor looking at your numbers here. By now I’m sure I’ve upset many couples with my various conjectures about the Equality method and the Government Taxation method of figuring out the net worth for above average married couples. For a blog that encourages financial wisdom to free people up to do what they want and pursue a vibrant life, I would have expected a little more precise (and nuanced) thinking on this matter. In other words, you and your spouse cannot receive more than a certain amount in SSI each month. 1) Where is the student loan debt? Just one example of this is an International Labor Organization study from 2010 showing that women earn 81c on the dollar compared to men: https://www.ilo.org/washington/areas/gender-equality-in-the-workplace/WCMS_159496/lang–en/index.htm. My grades were even better than his! Take a moment to study the above average person’s net worth chart again. what they have, it just won’t be at the level of lifestyle they enjoyed during their 400k doesn’t go very far when ya have to pay for health care. Most people over 35 all nod their heads in agreement. So the scenarios you present are reasonable for those who do NOT have a very healthy government pension. What are you basing these numbers on? 2. I’m not in the business of schadenfreude dancin instead of the mainstream media highlighting America is financial woes, I’d rather highlight what can be possible and help people get there. Teamwork is so key. Our combined incomes can definitely afford us a bigger house, but our passions are travel, helping our parents (all immigrants from Vietnam), and donating to certain charitable causes. However the concept of looking at possible net worth for couples compared to singles is really interesting. Unfortunately no pension but good rental income that can help offset for awhile until I start drawing on retirement funds and SS. I had never heard of early retirement when I was new to the workforce and saving for a typical retirement of 65 was an absurd idea. Additionally, what do you do that you spend $80-$120k a year currently?! 80k is barebones for trying to live in SF. In the 2013 Fed report, for those with a Family Net Worth in the 90th to 100th percentile: MEDIAN– About $2,000,000 MEAN — about $4,000,000. I have been reading them for the past several years. Then you guys are set! We have a higher tax burden and other funds for pensions. The only thing different from your chart is our assets are distributed a bit differently. She loves coffee, barre classes, 90s television and pop culture. Is there any data available on what stock options are worth typically for senior management? Good question. The word is from the Latin copula, which means "bond.". Fair enough. R, Fred. I think it’s great to work together to build a healthy financial future and also work on one’a individual independent health. Since we both will have a masters degree soon and a possible pHD in the future, I believe we will get there if we keep going forward. It’s def. It’s absolutely laughable that you expect a couple who’s just turned 40 to have 1.3 million dollars. About 13 years ago (two recessions ago) had to take a 40% cut in pay …took me 7 years to get back to the wage I was making. On the other hand, you might not want to go to something that he’s invited to, either, because you might know that you’re having some problems but you’re afraid to bring those issues up. Otherwise, it doesn’t seem like you two are very good for each other. Do open school districts exist? Or perhaps look into a 5 year CD (less risk)? Why admit defeat and pay the government more in taxes upfront when you don’t have to? I would say less than 15%, but that is to be expected as we’re talking about above average. Right now we are trending in the 50 year old range and having a bit of a conflict. Or, even better, consider renting. You really have to be honest with each other about the good and bad things that are going on. This is what I did… My husband is only 2 years younger than me chronologically, but I graduated HS a year early and then was on the 3 year plan at College, while he was on the 5 year plan. I would argue the The Average Net Worth For The Above Average Person would apply for married couples if one person is out of the workforce to be a stay at home parent. Being content with what you have is one of the greatest attributes for being wealthy. Temptations to upgrade your house? Interesting chart. Long time reader through my wife’s account. Yet the structural debt from the two wars, two tax cuts, and medicare part D all charged on credit remain to get paid in the future. am 62, have been retired for 20 years, live debt-free w/400K net worth, no mortgage… the biggest decision every day is ‘steak, shrimp, or lobster?’, life is good – these numbers and money do not matter one whit – we both exercise – i swim 1500m every morning, and we live minutes from the best beaches in America. I think this could be a good financial move in the immediate future for you. I think you are giving our legislators too much credit! So not only cash ! Couples need to be able to communicate with each other about the things that they like about each other and their relationship… and they also need to be able to come clean about the things that are becoming bigger problems. My wife stayed home with as kids from her teacher job for 8 years until our youngest went. I hope I’m not stuck here till I die. Amope Pedi Perfect PRO In-depth Review – Is It Worth It? If youre spending 1200 a month on an apartment which you get no equity from payments, wouldnt it be better to own? What percentage of couples are considered “above average?”. Where I differ from the chart is with over 7 figures invested primarily in stocks pretax I dumped a lot of my post tax into my home given didn’t want so much in stocks. It’s a bit late, I know, but I just recently met the right guy and that helps. Get free refinance or purchase quotes in minutes. I feel that this analysis is based on planned figures, not actuals. We have another $270k in pre tax investments. The benefits of marriage stop there for me though…loved the partially hilarious/ partially horendous post on attracting a rich man…where were you in my 20s?! If you were a “C student” and expect to live an “A lifestyle,” you’re definitely not the above average person! We are the above average! It would be interesting to consider the above average person in relation to state residence. Are these numbers still accurate after the housing bubble burst? I feel good about my financial situation, that is until I read your blog. what’s next after budgeting, savings in 401k, IRAs, etc. YouQueen.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com, Copyright © 2019. Hes been asking recently about his finances and Im proud that he worked hard during high school to achieve the scholarships that will basically pay for his BA. Their 401K Fee Analyzer tool is saving me over $1,700 a year in fees I had no idea I was paying. It’s the worst to argue with someone who you love and who you want to spend your life with. That allocation isn’t ideal, and in a perfect world, I’d probably flip that around as our home equity isn’t all that valuable unless we leverage it in some way, which we are not currently doing. Sam, what percentage of the US population would fall in to this chart for singles 25 an above do you think? I hope you spend time with your pink hat on marching around your town. There is no guarantee the government will continue to bail us out. 10-20k property taxes, 20k for health insurance, that’s almost half the budget already. Pension (because that’s dependable these days!). My husband is 25 earning 53k a year and I’m 26 earning 17k. If you are at 2M and 40 years old, your net worth only has to go up 5% per year to reach a little over 5M by 60. is commuting them from out of area possible? He is enormously happier and it was absolutely worth it. I’m confused about your property equity chart. Will that area ever get expensive? If you have several million in options, you’re not in the above average pool, you’re in the extraordinary bucket. Background: I am a commissioned officer serving on active duty in the United States Army. Relying on one person to do everything doesn’t work very well. I would love to mail you a book (free), The Passive Income Physician, written by one of my business partners Dr. Tom Black. Hard to say exactly. Oh, I’m not sure it’s what the govt wants? The leveling of income and taxes is very high, where the high earners bare a lot of the burdens of the low earners. Most people who disagree are under 35. You don’t have to be C level to hit these numbers. It is nice to see that our NW doubles the amount in your chart for the above average Financial Samurai couple BUT we will always be middle class regardless what our NW is. As always, great article and analysis. Then I would probably agree with the net worth values in early adulthood, but those would be well above average assumptions to make. Credit Card Debt = $7000 (Sadly) Great to year from you. :). Thanks for the feedback manny. I plan on taking Social Security at 66, because that will be full retirement age for me, and my wife will receive 50% of my benefit when I claim it (the max she can get). If some or all of this well deserved medical benefit is covered for ya through your service to our country that is huge money you would not need to generate making your 400K networth last much longer! Got divorced 10 years ago … ended up losing $100k on the house we had bought (all absorbed by me). You have to really prep for a major reduction in spending compared to what you were making to save up the retirement funds. As a dual-income couple we are penalized the most which is outrageous since we are already paying more taxes as W-2 employees than many small business owners who I know do not claim their full income. Therefore brokerage account principal is post-tax but gains is pre-tax.

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