Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
In fact, I had no prior experience or understanding when I began investing in 2018, but by the end of 2019, I had made a profit of almost $750k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.
*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I agree about having an emergency fund first and foremost. My wife and I have been retired now for 12 + years we retired in our 50's. For us forgoing many things and expensive vacations in our younger years was the key. We spent our money (we both worked full time) on our home. We raised two kids and put them both through college. I was a mechanic and my wife an accountant, neither with a college degree. My advice is buy your home do not rent. Do what it takes to do this. Save as much as you possibly can especially tax defered, and have that emergency fund. Purchase good used car(s) and pay cash if possible. Use credit cards only if you can pay 100% of the balance every month. You will make your life so much better in your later years, and they will come faster than you think.
Jim, your advice is spot on! We did take a good vacation every year with our two children (only one BIG vacation, a month to drive from MI to CA taking in all the sights). College is way overrated (especially now with the indoctrination most have). The Budwiser VP who cost Bud $3 billion is a HARVARD woke grad. You have proved college is not needed to succeed. I am a college graduate but did not use anything from it (just retired at 72, money is all set). Again, congratulations. You sure retired young.
@@CheckThisOut77Boy you just can’t let the Beer issue go😂😂 but putting that aside I have to say working hard, not over spending, pay your future (savings) like it’s a bill every month, keep your foot on the gas and with some luck you can retire pretty comfortable. I can not agree about the college not any help, it’s made a big difference for our two grown kids. Not to take anything away from hard working blue collar or lower end white collar careers, we managed to make a good life without it, but our kids went the college route and we were glad they did. Hope everyone can find a well deserved rest and relaxation in retirement till or journeys end.
Delayed gratification, doing without wants (not needs), and discipline are the keys to building wealth. I know people w/o a college degree making $20 an hour who are wealthier than those with serious college debt making $75k and are living beyond their means. People make choices. Sometime they choose to be poor.
100% Rob. I have told my sister this for years as she bought campers, boats and partied. Now she laments not being able to help her son buy a new truck, as she heads for her retail job, which she hates. I have always wanted a truck, but drive a beat up old Subaru. I just respond "we all have choices." Then she doesn't speak to me for a month....
This is a poor man's mindset, and while technically true in a sense, other people have an abundance mindset, and satisfy most of their wants while using the same mindset to make a ton of money. The best way to make money is to, in some way, own and run your own business. Salaried employees are always going to be limited, but safe. Business owners and hustlers are not safe, and might loose everything a few times, but ultimately manage to live almost limitlessly.
I guess my wife and I are categorized as wealthy but I don’t feel like it. My wife and I came from nothing and worked hard to get where we are. We will probably always have enough but I am always worried we won’t. Thanks for the videos and the reminders to save but also live. There is much more to life than money.
My wife and I are in your boat. We don't feel or act wealthy. Our grandparents were coal miners who died penniless and we are retiring early. It is amazing what time value of savings does for a persons wealth.
Same. My kids always tell us we’re in the 1%. We spent 20 years with our heads down building businesses, investing and put away their school funds. Now that we’re coming up for air , we are wealthy. The time passes quick but we came from nothing so we always felt like the wolf was at the door.
@@kdpowers I definitely don’t feel poor and surely don’t need more stuff, but I am a glass half empty kind of person so I don’t feel like I am wealthy. Fortunately, I am moving to the position that experiences are what will make me happy whether it is time with family or going out west to see all the beautiful things nature has to offer.
I too came from a lower middle class upbringing and was fortunate to have an ROTC scholarship from a respected university. My wife and I both have Masters degrees and continue to work hard in our early 60s. I have 2 reactions, first I would’ve never expected we were so far into the upper quintile. We feel prepared but certainly not wealthy. Secondly, I’ve heard most Americans have not been able to prepare adequately for retirement. Unfortunately, the numbers reveal just how steep the hill is for a lot of families. I’m sure your videos are helpful to many. Thanks!
The average retiree, I believe, should have been able to have enough to last the rest of his days. I t just depends on choices during your working days, just as I came to realize later. Surprising how I still netted more $2m. by retirement. And this is while living in New York!
I feel kind of weird being thought of as wealthy because I never had a high income, at 58 I finally hit 70K per year but started at 10K per year in 1983 or the equivalent of 30K today and gradually worked my way up. The thing is I am firmly in the wealthy category by net worth, I plan on being retired at 62 with a 7 figure net worth. The moral I guess is even if you don't make 6 figures you can still move up in net worth over time. I didn't even have to live like a pauper to do it.
I think the number for wealthy is wrong! I didn’t catch who defined these categories. I’m mean seriously, is it a government definition to ease people’s minds about where they are sitting financially? If you retire at 62 and need a hip replacement and have a stroke or coronary event you’re money would be halved. So, that’s what goes for wealthy today?
You ARE an American success story. Age 62 is too young to “retire” in my opinion. Unless you have a health issue, I suggest you wait until full retirement age to collect SS (likely 67), plus, Medicare doesn’t start until 65. Make sure you retire TO something valuable to do. Again, congratulations on setting yourself up for success. Complainers may just say “you are lucky”. No, YOU did it!
These are very valuable info for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $109k now to put in the market.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.
true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from 275k to approx. 850k so far.
@@PhilipMurray251 Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
Cant reveal much info, KATHRYN ALETHE HALL is the shrewd advisor responsible for my portfolio success, it's only right you look her up and confirm yourself.
It’s possible to make a modest income and save $ for retirement. We don’t go to festivals, concerts or football/ basket games. We cook at home and treat ourselves to a restaurant once a month. Go camping, go to parks, walk around the farmer markets are loads of fun.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
That is why I work with *Camille Alicia Garcia* , who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures. You also get to meet new people, which was the best decision I ever made.
I heard you say that you read the comments, which encouraged me to share that I'm considering using this video as an example in a class on rhetoric, or, basically, speaking and writing to reach an audience. I'm also refreshed by this sort of class-inclusiveness while you also speak gently, with empathy, regarding what people might work on, when they can. Plus, I'm in the age group you mentioned, who are deeper into a career and retirement isn't nigh, but it's more of a thought than it had been . . .
I'm 56 and fall well into the wealthy category and would have not guessed my net worth would be considered wealthy, but I'll take it. A majority is in 401k and home equity. You're right, it takes time. 20 or 30 years ago it was a different story.
Azul, thanks for the down to earth videos. Retired 2 1/2 years ago at 69. We were blessed to be able to have my wife stay home with the kids. And now we have 4 grandkids.
These retirement videos are all over the place. A lot say you can't retire on $2 million. Well, maybe if you live in NYC, or San Francisco, or Washington, DC. But if you live in a lower cost of living state it is way more than enough. $250,000 is definitely low, as is $600,000 to be considered "upper".
I’d say you need 3 million with all the devaluation of the dollar the past couple of years. A reasonable 5% return on your money will yield 100k a year thus depends on lifestyle
My daddy passed away in 2000 at 84 and never made more than $30k in his annual working income. He amassed a portfolio of just over 1.5 million at the time of his death. He always saved and invested 10% out of every paycheck since he started to work at 10 years old selling newspapers. He was raised by a single mother having lost his dad as a baby. He put himself through college after I was born in the 50’s. My dad was a smart man and had a great stay-at-home wife! Life was good!
You gotta adjust for inflation, $30k back in the early 80s would be worth 90k today. The median individual salary was $11,000 back then, so he was making great money.
@@KevinQ1989 True, but, thankfully that same money supplements my SS and retirement by way of income from a Trust he set up. But, my point was, if one saves and invests from the time they first start working, they can have a good debt free life when they retire.
So what for?! 1.5 M for what? For Who? He worked his entire his best youth and young years to amass that money without realizing how short is life can be. Especially how short is to get to 50 . Did he traveled enough to see the world? No, he didn’t. So, what’s the point to work hard and be a slave to some ahole corporations for a cheap buck.
I am 39 and have a net worth of over $260k in a middle cost of living area, but I do not feel like upper middle class. I drive a really old car, have a modest house, an okay income, but save my butt off and try to keep my expenses low.
There are many people in middle and upper income bracket that are in the lowest quintile for net worth. Also, there are many in the lower to middle income brackets that have above average net worth. It is not what you make, it is what you spend compared to what you earn!
@@CheckThisOut77 Those opportunities include living beyond your means - that's the American way for most. Choose to be weird, live within your means, have no debt and watch the numbers climb!!
The portion of net worth that is often excluded in these net worth calculations are future income flow from pensions and even SS. People are better off than most think. 3k per month x 12 and a good safe multiplier is 15 IMO. That’s 540k additional net worth. Many couples easily get 3k per month. 2k from main working person plus half for spouse. The better route though is to start with 250k and use 4% withdrawal. That’s 10k a year plus the 36k in SS. Can today’s retirees make it. They should because there is no mortgage payment. Property taxes for my parents is less than 2k a year! Homeowners insurance isn’t not even 2k per year.
Thank you for the great content. One topic that affects most of us when talking about net worth is the value of the home. In some cases it is like a White Elephant” because of associated expenses for something that served its purpose at some point, and now it is accumulating value,but at this point is under utilized, and property taxes are significant. The question is: how can I utilize this frozen treasure? Reverse mortgage in my opinion is not a good option. Downsizing seems more practical. I am sure that a big portion of middle and upper-middle class folks is the value of their home, but does it really count?
I'm shocked that the upper middle and upper class numbers aren't higher. I would have thought upper middle would have been $600-700k and upper would be $1.2m to $1.5m.
Those figures are amazing! I've gone through life wondering how everyone around me is so rich that they can afford to spend money on things like walking-distance taxi fares or entry level luxury cars. I always felt that I was permanently sprinting just to keep up and that I was perhaps just a bit better off than average. Hearing these figures is a complete paradigm shift, it's made me realise that I'm actually rich!
I wonder the same thing! The middle income seem to have a retirement nest egg of $2 million plus a pension to go with their 401K and Social Security. It seems like most people in my area have that, but I just don’t know. I certainly don’t!
This really depends on your location. Any large metro coastal area is much more expensive than a rural area in the US so it takes a lot more to be wealthy.
Every teacher and cop in the NY metro area has a guaranteed pension equivalent to having millions of assets the second they pass probationary periods or tenure. Just have to get through the 20 to 30 years and it's yours.
If you live in a city on the US West Coast and have lived in your house for many years and have paid it off, your net worth will make you look like a tycoon, even if you have a paltry income.
Love your video as for myself I worked my way to the top at age 30 then retired at 47 I now know where I stand with my net worth. Everyone is different but, I think we all have it in us to accomplish more than our parents. My father is illiterate worked all his life for under $20k/year, My mother had a HS diploma worked as a secretary made about $25k. Seeing them struggle with money made me more determined I would not have those financial issues in life. America is still the greatest country in the world, I am older now but, would go again to defend America for my children and grandchildren.
These figures are way too low. Someone with $680k net worth isn't wealthy. They are middle class. I've been tracking my net worth for 4 years 1st year was $547k then $667k, $883k now $1.1m... I am not wealthy... I have 0 passive income. I am 40 years old.. I have to work for at least another 15 years. (Hopefully only 15 years) I save, I invest, I budget. But I don't consider myself wealthy (in America, compared to the rest of the world I definitely am) I only make $70k a year... I've just been able to compound my money over time.
As a retiree I really enjoy all of your videos Azul. I forwarded your videos to my son in his early 40’s and he is now subcripted as well, I don’t think I’ve seen you do much on the security of our Social Security system. Surprisingly, I found myself in the upper section of your network category which frankly surprised me. With my social security and annuities I have little need to drawn on my retirement money. I also have no debt so after watching your videos I feel pretty secure. I guess the only thing that could make things a little tight would be if my SS income were to disappear. Can you add some comments about your view of the future of SS? And thanks again for your great videos.
I have found your series very helpful and hopeful! Most people including myself are to a degree are financially illiterate. We don’t have mentors or even with successful family members like they don’t have an actionable strategy to pass on or way to communicate what they did for success. Like take my dad for instance. He said he watched Louie reiukeiser and read prospectuses. So I tried it, learned zero! Based on what I’m seeing in your videos I could retire now at 59, however I enjoy my job and going to 67 would not be a huge stretch. I’m kind of doing bucket list stuff now while I’m still working my last years. So I won’t miss out on such if I pass early or have more health issues. I think I’m on track for doing real well. Probably above middle class but below the upper percentiles, like I almost got there!
Another great video. I wish many people would understand the path to becoming "wealthy" is attainable by nearly everyone and your words are spot on. Live below your means, invest in yourself, continue learning and never give up will take you a long way. Bonus points if you're lucky enough to choose the right partner fairly early in your life. Do this and one can go from homeless to retired very comfortably after raising and educating 3 kids. A bit oversimplified, but the process works.
Should you count pensions in net worth calculations? That doubles what my net worth if it is also counted. I don't feel wealthy even if just my assets outside my pension according to your clip puts me between upper middle and wealthy. Close to the 600k mark. One thing I have found out about retirement , wealth can still grow if you are frugal.
I'm in my final year or two but I had to reduce my hours three years ago due to stress. So, that's already knocked a chunk (maybe half) of what I could have saved if my job hadn't turned negative. And stress is a killer, so something had to give.
Retired 3 months ago with roughly that amount ($250K). Downsized to a house I could afford outright. With a modest work pension and a little social pension I will be just fine! Probably even get in a little travel once a year.
@@rossgooding7423 Be 63 in May. Moving from an area with a large population to a more sparsely populated coastal region. Slow down the need to spend significantly. 😁
@@fwefhwe4232 Nope.. not in the US thankfully. You folks seem to be a bit out of control unfortunately. "Profit over People" hasn't trickled down to raise all boats with the tide. Right now my retirement income is roughly $2K/ month. I am mortgage free. I no longer drink, smoke or gamble.. believe me.. these 3 vices are budget assassins. I stick with a little pot I grow myself. I've been driving 45 years claim free so my auto is down to about $1 day. My "new" house is insured at about $150/ month (which I find excessive for the value of my place..$70K.. so I will look into the competition after I arrive there full time in a week or so and settle in a bit.). Property taxes are about $100 / month. Basic health is government covered and dental/ vision is taken care of by my work pension agreement ( I worked for Chrysler.. such an awesome pension package for people of my generation.. that of course has changed drastically for the new hires. 🙁) Apart from power, internet, gas and food I really shouldn't have any other utility type expenses. If I chose to do nothing like fulltime work again I would be fine but the reality is even though I finally left the grind of the assembly plant doesn't mean I will stop doing work type activity and making some $$. In the last 3 years I have upgraded my tool shed with new equipment.. large generator, new table saw/ miter saw.. etc. As long as I have my health I will always have an opportunity to make a few dollars and stay active.
My son graduated last year and started his "big boy" job. I'm teaching him to save, invest and hit some goals: get to $1k/year in unearned income, get enough investment income to cover all basic expenses, and the big one, get enough investment income that exceeds your earned income so you can have more choices in life. When you hit a critical mass of wealth the way you invest changes too. It's less about saving for emergencies or that dream vacation, it's more about how to manuver your wealth into higher returns with less taxes so doing what you like is a given. The sooner you can achieve this mindset the better.
When I was young, I wanted to have 1 mil by 40. I'm 38 and have 600k. I know that is very good but I have made mistakes that have hurt my career and earnings. I'm tough on myself for not doing better, but still thankful for having a good career and good life. One mistake was that I was scammed by a shady realtor when I was going through a divorce and sold a home for a 40k loss when I was told I'd break even on it. I could have held it for a few years and made 70k on it. The other mistake was not starting my career earlier. I save around 50% of my income, though. There's always room for improvement.
You’re on track for success (and doing better than most). Dave Ramsey has great steps for success. Advice: Don’t just focus on the numbers. Also, find a good Bible-based church for a spiritual foundation. Look back to learn, not lament. Your windshield is larger than your rear view mirror. Again, congratulations.
It was good for you to have the '1 million by 40' goal, but you don't need an age based goal now that you have capital. Your priority now should be to deploy and invest your capital for maximum returns while managing risk according to your circumstances and personality. Just make the right investing decisions and the results will come. Keep up the good work.
I came into the workforce doing work beneath young people of today and I’m still in the line of work, making a darn good wage at this point. I say beneath because we don’t have much success keeping anybody under 30. I do work Americans won’t do just like illegals. Me and my wife who also makes a good wage, for years on end, we work all the OT we can when it’s available. It’s just automatic. These days, we are fairly wealthy. We own two houses and live a nice life. I always hate it when someone makes a dumbass comment, “must be nice.” Usually comes from the type that would tell us how they’d never work that much, or the type that my work is beneath, the 40 hour complainer type. They choose to struggle, we didn’t. I always figured, I’d rather be at work making money than sitting home broke with just enough money to lay on a couch watching tv. First thing I always ask a person who complains about struggling is how much they work. Seldom do any of them work more than 40. A person can rack up 3-4 14 hour days in a week and still have a life, it’s just less couch time. My pool guy in Florida was complaining one day about making it. His answer was 40. I prioritize time completely different than these people do. I get leisure time doing things I love on nice trips, but when I’m in the thick of shit, it’s about making money. Couch time is an expensive, non fruitful experience I don’t need on a daily basis, watching rich people on a tv, lol. If I’m not at work, I’m at the gym, or doing something exciting.
Most banks consider “high net worth” to be at least net $1 million in liquid assets (not including house). This would be a bare minimum to be considered wealthy and would be barely upper middle class in many large cities.
@Goat Skills like developing fusion (Livermore, CA) or ChatGPT (San Francisco, CA) or general farming (Central Valley, CA) or entertainment, shipping, refinement (Southern California)? Which skills are you referring to?
I guess I would be considered wealthy+. But I recently lost my wife and I would give every penny away to have her back. We worked and saved but still had a great life. I am recently retired and completely out of debt except for small mortgage balance (>40k) that I keep for tax purposes. But I agree with other people in the same situation.... I don't feel wealthy but I do have plenty to pay for whatever comes along.
A lot of people are saying X Amount of dollars isn't enough and really, it depends on the people's situations. It depends on a lot of things. It's "not good enough" if they have debt and are renting. If they are debt free and own everything they have, including their home, they will be fine as long as they have emergency funds put aside and enough residual income to support their living expenses and taxes, with some left over. I know a retiree that doesn't have much coming in, but he owns everything he has, and he seems to have enough money to pretty much do whatever he wants. He makes his rounds at the local craft breweries and eats out and goes to the movies anytime he wants, and he has enough money to jump on a plane from time to time for vacations or visiting relatives.
I am 34 and in that wealthy category but I sure don't feel wealthy. My stock portfolio has been in the toilet the past 2 years. Hopefully things get better. And for those of you at the lower end of the spectrum I was there too years ago. You have to make significant changes in your life to get ahead financially many sacrifices and struggles but keep at it and you will get there just don't give up because trust me you will want to.
Thank you. I hope these numbers are correct because I’m not wealthy enough to claim to be. By your chart I’m wealthy. I say I’m frugal and worked hard.
Great video! How do you quantify a pension and social security payments when calculating assets? 401’s, 457’s, home equity, and cash savings are straight forward but should it include a pension and SSI when calculating total net worth?
Good basic information! It seems to me that the “powers that be” never want the middle class to be comfortable . Biggest factor is the rate of inflation. Something we (middle class) have no control of, what’s a good nest egg today is a drop in the bucket tomorrow.
@@metalmike570 you're not kidding. Friend of mine retired Air Force Lt. Colonel makes so much money and free healthcare. The VA is supporting our soldiers in a big way.
Make sure you max out the appropriate retirement accounts (401k match, then Roth IRA, then traditional 401k/IRA). If you want to retire earlier, you may consider contributing to additional accounts: annuities, CDs (right now getting 5%, though variable), and your taxable brokerage account. Consult your accountant or local finance professional to recommend what’s best for your personal finance situation.
I like your style...for us it was buying a new car and keep it up to 12_15 years...pay yourself first , live below your means..stay out of debt (this is the most important) out of debt out of danger😮, be generous, be so thankful, and always keep mind your money 💰 and assets, no one will ever take care of them like you 😉
Based on the numbers you shared, it’s scary how little people save for retirement. I realize that I am much better off than I thought I was by comparison, but I still don’t feel as though I’m anywhere near where I want to be. Thanks for giving me perspective.
With all due respect, not sure where you got that number from. $608,900 to be considered wealthy in the United States in 2023? No way! Maybe 25 years ago. I think it's more like over $2 million to be considered wealthy today.
Do not get fooled by outside look. There are many people living luxury life style but all they have is debt. Having $600k in your account is a good accomplishment.
I have worked with people in their 30's and 40's and some of them have not even started saving for their future (401k, etc). I try to convince them to even invest $100 a month, but they say they can't. (You don't miss it if you have them take the cash out of your check). I just don't get the younger generation...... Thank you for your videos. Hopefully some younger people will take your information and start planning for their future.
Just add that education doesn't need to be in a college. Plummers, electricians anything in the trades pays well and will only continue to grow. Plan well from highschool and you could be done by 40 easy.
Yes, just go into debt in the hopes of finding a marginally better job that probably won't exist by the time you have qualified for it, and which will be given to somebody younger if they are available with the same education. As to the OP, these people are not "feeling sorry for themselves" you arrogant son-of-a bitch; they understand what is possible in ways that you will never, in your arrogant smug self-importance, ever understand. They are realistic about the virtually non-existent opportunities that are available in the ant-labor, hyper-capitalist, socialism-for-the-rich rugged-individualism-for-everyone-else, dystopia that is America.
I just found your channel and am enjoying your videos. On this topic, even those in the upper echelons, assuming they apply the 4% rule, are going to eke by. Add social security and it gets better, but taking it early adds longevity risk. What have you seen with your clients? Has 4% been too conservative?
All these quintile stats are really misleading unless they are age dependent. I saw a figure once saying that 60% or so of the population would be in the top 20% of incomes at some point in there lives, but people looking at quintile see them as mostly static.
@@infoseeker Very true. People also want to show their best side …. and they should. Hard to see how poor they really are. A lot of people really struggle.
My net worth is $1.6M, liquid assets are just over half that. I do OK, but I don't feel wealthy by any means. My wife and I started at zero 40 years ago. Nothing inherited at all, parents were poor. We raised two kids and worked hard, did not spend beyond our means and always put something away. Our house is small, but well maintained and updated. No debt at all now...finally cleared that up a few years ago. My wife is retired and I hope to do the same in 3-4 years. I hope to put away enough in that time to have liquid assets over $1M.
I jumped from upper middle to wealthy apparently with 1 house transaction in 2021 and what home prices did in the last 2 years. Cool! Wish I could have done that X10. Good vid. Thx
Where does 401K fall into the net worth formula? We have assets (house as you mentioned), cash in bank, and many years of savings in 401K/retirement fund. Does that add into net worth?
That's why I use the purchase price as the valuation on my net worth statement. Not the most accurate, but it better illustrates the progress I have made in the past year rather than riding the coattails of the real estate market.
Net worth tends to be tied up in untouchable assets. Just as one can’t buy groceries with home equity neither can one meet daily living expenses with retirement funds, unless one is actually retired.
Your home equity is part of your net worth. I like to break mine up into its components. Liquid and non-liquid (equity). Mine is broken into home equity, the amount in retirement accounts both Roth and traditional, taxable funds, and finally cash. Some is easier to spend than others. Of course cash is the easiest. Then taxable funds you’d have to sell and pay capital gains on and then traditional retirement accounts of which you’d have to pay income tax on whatever you take out over a minimum threshold, and then finally your Roth retirement accounts that you probably want to spend last unless you need some funds without increasing your taxable income in a particular year.
Once you're retired and don't need to live close to work anymore, you could consider moving to a cheaper area though. That might enlarge your retirement savings substantially
Class is more tied to income and expenses than wealth IMO. On paper I'm pretty wealthy, but my current income (~$50k) and expenses (~25k) are more modest and in line with a middle class life. You wouldn't call a paycheck to paycheck lawyer or doctor earning six figures lower class, right?
Discipline, discipline, Discipline! Retired, 61, about a million +/-, literally no debt, live modestly, no worries. Best friend still working, no fiscal discipline (admittedly) spoils grown kids, constantly worries about the future $$$$, lives large . DISCIPLINE!
This is true with me. Live in the SF Bay Area and in the same house for 28 years. The house is worth close to a million but our other assets are worth more because we've lived below our means (not easy in the Bay Area) and put our savings into stocks that have done well. We had to work instead of vacation and drive cars more than 10 years old for transportation. We've retired now and are looking to relocate to a cheaper area, all the years of sacrifice have allowed us the peace of mind of a stress free retirement. So Azul's advice is spot on.
You don’t need millions to be wealthy, folks. If you think that, then (a) you’re either living a very extravagant lifestyle, (b) you can’t do math, or (c) are unaware of the most efficient ways to make your money work for you. To provide an example, if I know I need $96k/year ($8k/month) after-tax to live on (what I consider a healthy/comfortable lifestyle), then that’s my starting point. Grossing that up for a 30% tax rate let’s say, we’re at approximately $137k in before tax income that I need to generate from my assets to retire. Now, if I know of a way to generate 10% returns on my money consistently (cash-flowing real estate is my weapon of choice there), then I simply need $1.37mm to fund that lifestyle. It’s that simple.
Besides the level of your income it's important to be as self sufficient as possible. I repaired my own cars, did my own home maintenance to the fullest extent possible. Whatever you buy, keep it until you use it up. If you get married, stay married. Divorce impoverishes the man and the woman. Having a wife who worked as hard as I did made a big difference also. We were lucky enough to stay at the same employer for 35 years. We both did factory work and retired with our house paid off and a 7 figure 401K so you don't need a college degree to succeed.
@@i_brought_a_flower You haven't a clue what you are talking about. My wife and I were factory workers, no college education. We used common sense to make decisions throughout our lives. We didn't drink $5 coffees every morning, didn't buy a new flat screen tv just because they were the latest and greatest. We bought one when our old tv quit working. We cooked a majority of our own meals at home, didn't eat out 5 times a week. We never had food delivered. The trouble with you people is you don't know how to do anything for yourselves. You want to pay someone else to do it all for you. Re-read my original post and pay attention this time. If you still haven't figured it out, go back to 4th grade and retake Reading Comprehension and stay awake this time. Lastly, stop voting for democrats.
Technology has changed significantly since your days as it has changed everything!!! Not only will the new generation have to keep up with technology but they have to have skills to compete in the job marketplace which is becoming more fierce everyday. In addition, manual labor jobs are being replaced by automation and that will be a factor as well. Lastly, inflation will cut whatever value the dollar has and just because you earn high dollars, it doesn't mean it will buy much!!!
@@LWRC I kept up with technology throughout my working career. The machinery I ran went from switches and levers to computerized controls and I learned how to operate it as well as doing some troubleshooting. You're focusing on income while I am emphasizing reducing spending. You can make big bucks but if you spend it all because you can't do things for yourself, you're likely to still be losing out.
It depends on where you are in life but generally I think passive income is more important than net worth and net worth is more important than active income. My goal from a young age was to learn how to save and invest for generating passive income so my loved ones would be fine even if I got hit by a bus. I was in the bottom 20% 23 years ago when I joined the workforce. But my net worth snowballed as a by product of that strategy and now I hope to be in the top 1% at 50.
I had that same mindset. Was always good with money at a young age. Saved at the age of 17 from my first job and every job since then. However I learned if you have lower income by your own personal standards, you should really be investing in yourself and seeking higher pay, before you get too caught up in saving and growing. If passive income is all you think about it could limit your abilities to seek higher pay as you're distracted.
@pilot88pro I can say you are definitely right about wanting to be careful about passive income distracting from your career. I thought I HAD to do something else as I had limited potential in my career and my wife didn’t want to work. So I bought a duplex and spent a ridiculous amount of time fixing it up while my kids were young. It’s been a ton of stress and never ending problems. A few years ago I snapped up a single family house that I thought I could flip and be done with the duplex. Well I’ve had it 4 years now and still working on it (still vacant). Lots more problems than I realized, and now labor costs have basically doubled from when I bought it. I NEED to try to do as much of the work myself, but now I just don’t have the motivation. I would have been better off just putting all my savings into an index fund…
You can not retire on 250k unless you have a super pension the last years won't be so good if you worked all your life how could you only have 250 something funny going on or you a lazy do nothing person you must move up the ladder fast these days or your fuc/ed at retirement
I see a lot of bodies on the sidewalks in the future. How are people going to afford nursing homes when they run 4-6k+/month. I'm in the wealthy group but don't feel like it. Drive a 20+ year old vehicle with 276K on it and just got back from the dollar ($1.25 now) store.
I’m in the same position as you describe & retire in 12 months, so the Im going to sell my large family home and build a home with a small self contained 1 bedroom apartment attached. This house will not have any money owing on it & I will live in the house and rent out the studio until I need care. Then the plan is to move me into the studio & hire a carer & they can live in the house as part of their wage to take care of me, or my son & daughter in law can move into the house & rent out their house to boost their income & take care of me. The cost of nursing care eats up a big part of your life time of savings & I want to leave my lifetime of hard work to my kids not some care corporation. The additional rental income in my initial retirement years is to fund the travelling I want to do. I don’t know enough to be investing in shares etc so want additional low risk income. I’m in Australia & rents are around 40% of your income & we have state funded health care. The new house will be solar powered so the energy costs will be negligible. I had to think outside the box to make use of what I have & minimise any future risk. If for any reason I need to sell the new house in the future an income producing property or multigenerational home will be in demand.
Hey Larry, I don't know about you, but I'm not going to afford a nursing home, because I'm not going to live in one. EVER. Part of Azul's message is that we "invest in ourselves." Taking time to be healthy is a huge part of this investment.
I make $60k/yr and my net worth is almost wealthy. Dang. Even more than upper middle if you take my paid off condo out all together. High income earners need to do better. They would all be talking about "bootstrap" BS if I complain about my salary, while I'm actually running laps around them. 😅
Love to hear this. The real pros, like you, live far below their means. You live disciplined, and that is to be admired. I make around $80k per year, my only debt is in my mortgage. I take regular vacations in the form of cruises, I eat out two to three times a week, have an aggressive retirement savings, and have a small nest egg for emergencies. Getting out from living paycheck to paycheck. Let’s just say I’m getting better at financial discipline.
So glad I found your channel! I have invested 100% in the C fund of the TSP, and have been max'ing out for 15 years -- based on very helpful recommendations when I was getting started. Just adjusted to 20% in the G fund in the last few years. Are you considering the money tied up in one's retirement funds as part of one's net worth?
How do you factor in a pension in your net worth? For example, my pension pays about $50K annually. I imagine it required a little more than a million dollars in investments to generate that payment. So, do I count that as an asset? Thanks!
Yes you would. But you shouldn't overvalue that asset. Look at what an annuity would pay in equal terms (age, spousal benefits, etc). I would estimate a 50k annuity for a 65 y/o male with no survivor goodies at more like 800k ish. It's voodoo math.
Another interesting video, thanks for sharing. Regarding the median retiree net worth you mentioned in the video, I am wondering, is it enough to retire on?
I don't know if this data is available, but I would be curious to learn about the net worth of these different groups with housing taken out of the equation.
According to the US Census, 90% percentile net worth is $1.4M. 90% would be the median of the top 20%. So not quite sure where the 600k figure is coming from. I cannot link to the US Census stats or UA-cam will delete the comment but here is a copy/paste from their stats: The Value of Household Wealth by Percentile: 2020 Percentile 2020 dollars 10th. . . . . . . . . . . . . . . -1,450 25th. . . . . . . . . . . . . . 11,670 50th. . . . . . . . . . . . . . 140,800 75th. . . . . . . . . . . . . . 526,200 90th. . . . . . . . . . . . . . 1,410,000
Also, you state that median net worth is $120k then state that the middle of the middle is $104k. These two groups should be exactly the same as the middle of the middle group of an odd number of groups must be the median of the entire group by definition. Whatever source you were looking at botched it.
I loved knowing where I fit in the scheme of things. My daughter is 18 and graduating. We have a college savings plan. Any tips on using it? We also have prepaid college. I want to distribute it to her in a way that will teach her to save. I also want to not dip to far into my savings.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
Exactly ! That's my major concern and what lucrative investment can one venture into with the current rise in economic downturn
In fact, I had no prior experience or understanding when I began investing in 2018, but by the end of 2019, I had made a profit of almost $750k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.
@@hunter-bourke21Impressive can you share more info?
*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I agree about having an emergency fund first and foremost.
My wife and I have been retired now for 12 + years we retired in our 50's. For us forgoing many things and expensive vacations in our younger years was the key. We spent our money (we both worked full time) on our home. We raised two kids and put them both through college. I was a mechanic and my wife an accountant, neither with a college degree. My advice is buy your home do not rent. Do what it takes to do this. Save as much as you possibly can especially tax defered, and have that emergency fund. Purchase good used car(s) and pay cash if possible. Use credit cards only if you can pay 100% of the balance every month. You will make your life so much better in your later years, and they will come faster than you think.
Jim, your advice is spot on! We did take a good vacation every year with our two children (only one BIG vacation, a month to drive from MI to CA taking in all the sights). College is way overrated (especially now with the indoctrination most have). The Budwiser VP who cost Bud $3 billion is a HARVARD woke grad. You have proved college is not needed to succeed. I am a college graduate but did not use anything from it (just retired at 72, money is all set). Again, congratulations. You sure retired young.
I agree 100%….we did the same and now have a very large net worth.
Wow….we are lucky as we are close to retirement. Well over 1m.
@@CheckThisOut77Boy you just can’t let the Beer issue go😂😂 but putting that aside I have to say working hard, not over spending, pay your future (savings) like it’s a bill every month, keep your foot on the gas and with some luck you can retire pretty comfortable. I can not agree about the college not any help, it’s made a big difference for our two grown kids. Not to take anything away from hard working blue collar or lower end white collar careers, we managed to make a good life without it, but our kids went the college route and we were glad they did. Hope everyone can find a well deserved rest and relaxation in retirement till or journeys end.
Travel before you get too old is really important.
I appreciate that you speak kindly of the folks who have had a rough time getting ahead. Thank you for your compassion and supportive videos.
It's not so much your net worth is important, it's what you do with your money
That actually made me subscribe.
@@8ofwands300 same, what a great person.
@ Dee _"I appreciate that you speak kindly of the folks who have had a rough time getting ahead."_
Agree! 👍
So do I
Delayed gratification, doing without wants (not needs), and discipline are the keys to building wealth. I know people w/o a college degree making $20 an hour who are wealthier than those with serious college debt making $75k and are living beyond their means. People make choices. Sometime they choose to be poor.
100% Rob. I have told my sister this for years as she bought campers, boats and partied. Now she laments not being able to help her son buy a new truck, as she heads for her retail job, which she hates. I have always wanted a truck, but drive a beat up old Subaru. I just respond "we all have choices." Then she doesn't speak to me for a month....
You don't get rich by spending money.
College is vastly overrated. It is NOT needed in order to succeed.
It’s not about how much money you make but what you spend.
This is a poor man's mindset, and while technically true in a sense, other people have an abundance mindset, and satisfy most of their wants while using the same mindset to make a ton of money. The best way to make money is to, in some way, own and run your own business. Salaried employees are always going to be limited, but safe. Business owners and hustlers are not safe, and might loose everything a few times, but ultimately manage to live almost limitlessly.
What a sincere guy. Hard to fake that. His compassion for the lower quintile is kind and admirable 🙏🙏🙏
I guess my wife and I are categorized as wealthy but I don’t feel like it. My wife and I came from nothing and worked hard to get where we are. We will probably always have enough but I am always worried we won’t. Thanks for the videos and the reminders to save but also live. There is much more to life than money.
I feel exactly the same. Don't take it for granted and still concerned in this economy.
My wife and I are in your boat. We don't feel or act wealthy. Our grandparents were coal miners who died penniless and we are retiring early. It is amazing what time value of savings does for a persons wealth.
Same. My kids always tell us we’re in the 1%. We spent 20 years with our heads down building businesses, investing and put away their school funds. Now that we’re coming up for air , we are wealthy. The time passes quick but we came from nothing so we always felt like the wolf was at the door.
Even upper class folks feel poor. The world is never enough
@@kdpowers I definitely don’t feel poor and surely don’t need more stuff, but I am a glass half empty kind of person so I don’t feel like I am wealthy. Fortunately, I am moving to the position that experiences are what will make me happy whether it is time with family or going out west to see all the beautiful things nature has to offer.
I too came from a lower middle class upbringing and was fortunate to have an ROTC scholarship from a respected university. My wife and I both have Masters degrees and continue to work hard in our early 60s. I have 2 reactions, first I would’ve never expected we were so far into the upper quintile. We feel prepared but certainly not wealthy. Secondly, I’ve heard most Americans have not been able to prepare adequately for retirement. Unfortunately, the numbers reveal just how steep the hill is for a lot of families. I’m sure your videos are helpful to many. Thanks!
The average retiree, I believe, should have been able to have enough to last the rest of his days. I t just depends on choices during your working days, just as I came to realize later. Surprising how I still netted more $2m. by retirement. And this is while living in New York!
New York is sure as hell an expensive place to live in. Were you affiliated to Wall Street? Because how could you net such a huge amount?
That's incredible. Were you investing yourself? I'm really interested in this, because I'm in a similar position at the moment.
Thanks a lot for this. I just sent her an email, and I hope she gets back to me soon.
I feel kind of weird being thought of as wealthy because I never had a high income, at 58 I finally hit 70K per year but started at 10K per year in 1983 or the equivalent of 30K today and gradually worked my way up. The thing is I am firmly in the wealthy category by net worth, I plan on being retired at 62 with a 7 figure net worth. The moral I guess is even if you don't make 6 figures you can still move up in net worth over time. I didn't even have to live like a pauper to do it.
It’s what we save / invest that matters.
I think the number for wealthy is wrong!
I didn’t catch who defined these categories. I’m mean seriously, is it a government definition to ease people’s minds about where they are sitting financially? If you retire at 62 and need a hip replacement and have a stroke or coronary event you’re money would be halved. So, that’s what goes for wealthy today?
you will have to live like a pauper to repeat your success in the future
You ARE an American success story. Age 62 is too young to “retire” in my opinion. Unless you have a health issue, I suggest you wait until full retirement age to collect SS (likely 67), plus, Medicare doesn’t start until 65. Make sure you retire TO something valuable to do. Again, congratulations on setting yourself up for success. Complainers may just say “you are lucky”. No, YOU did it!
Glad I'm not the only one with significant net worth and modest income.
These are very valuable info for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $109k now to put in the market.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.
true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from 275k to approx. 850k so far.
@@PhilipMurray251 Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
Cant reveal much info, KATHRYN ALETHE HALL is the shrewd advisor responsible for my portfolio success, it's only right you look her up and confirm yourself.
I just checked her out and I have sent her an email. I hope she gets back to me soon.
It’s possible to make a modest income and save $ for retirement. We don’t go to festivals, concerts or football/ basket games. We cook at home and treat ourselves to a restaurant once a month. Go camping, go to parks, walk around the farmer markets are loads of fun.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
That is why I work with *Camille Alicia Garcia* , who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures. You also get to meet new people, which was the best decision I ever made.
@@ThomasChai05 Mind if I ask you to point at how to reach this particular person assisting you? Seems you've figured it all out unlike the rest of us.
CAMILLE ALICIA GARCIA maintains an online presence. Just make a simple search for her name online.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I heard you say that you read the comments, which encouraged me to share that I'm considering using this video as an example in a class on rhetoric, or, basically, speaking and writing to reach an audience. I'm also refreshed by this sort of class-inclusiveness while you also speak gently, with empathy, regarding what people might work on, when they can. Plus, I'm in the age group you mentioned, who are deeper into a career and retirement isn't nigh, but it's more of a thought than it had been . . .
Thanks for being our motivator (coach), Azul.🥂
I'm 56 and fall well into the wealthy category and would have not guessed my net worth would be considered wealthy, but I'll take it. A majority is in 401k and home equity. You're right, it takes time. 20 or 30 years ago it was a different story.
Azul, thanks for the down to earth videos. Retired 2 1/2 years ago at 69. We were blessed to be able to have my wife stay home with the kids. And now we have 4 grandkids.
These retirement videos are all over the place. A lot say you can't retire on $2 million. Well, maybe if you live in NYC, or San Francisco, or Washington, DC. But if you live in a lower cost of living state it is way more than enough. $250,000 is definitely low, as is $600,000 to be considered "upper".
I’d say you need 3 million with all the devaluation of the dollar the past couple of years. A reasonable 5% return on your money will yield 100k a year thus depends on lifestyle
My daddy passed away in 2000 at 84 and never made more than $30k in his annual working income. He amassed a portfolio of just over 1.5 million at the time of his death. He always saved and invested 10% out of every paycheck since he started to work at 10 years old selling newspapers. He was raised by a single mother having lost his dad as a baby. He put himself through college after I was born in the 50’s. My dad was a smart man and had a great stay-at-home wife! Life was good!
You gotta adjust for inflation, $30k back in the early 80s would be worth 90k today.
The median individual salary was $11,000 back then, so he was making great money.
@@KevinQ1989 True, but, thankfully that same money supplements my SS and retirement by way of income from a Trust he set up. But, my point was, if one saves and invests from the time they first start working, they can have a good debt free life when they retire.
So what for?! 1.5 M for what? For Who? He worked his entire his best youth and young years to amass that money without realizing how short is life can be. Especially how short is to get to 50 . Did he traveled enough to see the world? No, he didn’t. So, what’s the point to work hard and be a slave to some ahole corporations for a cheap buck.
The earlier I start to save is the key
@@rodrigocortes3641 Yes, most definitely!
I am 39 and have a net worth of over $260k in a middle cost of living area, but I do not feel like upper middle class. I drive a really old car, have a modest house, an okay income, but save my butt off and try to keep my expenses low.
You will not feel wealthy either when you reach that milestone. But you are already well on your way. Keep it up.
You're living the millionaire next door lifestyle.
You’ll be wealthy in no time and still probably choose to drive that shitty car
There are many people in middle and upper income bracket that are in the lowest quintile for net worth. Also, there are many in the lower to middle income brackets that have above average net worth. It is not what you make, it is what you spend compared to what you earn!
The net worth of typical retirees is 250k?? Yikes!! That is not good.
No it's not! But it made my wife feel pretty good. 😮
Average retiree only at $250K? For real? That sounds too low in America, the land of opportunity.
@@CheckThisOut77 Those opportunities include living beyond your means - that's the American way for most. Choose to be weird, live within your means, have no debt and watch the numbers climb!!
Throw in Social Security and a decent pension and most people could likely live quite comfortably even though their net worth might be fairly modest.
The portion of net worth that is often excluded in these net worth calculations are future income flow from pensions and even SS.
People are better off than most think.
3k per month x 12 and a good safe multiplier is 15 IMO. That’s 540k additional net worth. Many couples easily get 3k per month. 2k from main working person plus half for spouse.
The better route though is to start with 250k and use 4% withdrawal.
That’s 10k a year plus the 36k in SS. Can today’s retirees make it. They should because there is no mortgage payment. Property taxes for my parents is less than 2k a year! Homeowners insurance isn’t not even 2k per year.
That talk is about the household ( family). What about individuals?
Wow, those numbers are way lower than i expected. I'm already ahead of the curve at 46.
Thank you for the great content. One topic that affects most of us when talking about net worth is the value of the home. In some cases it is like a White Elephant” because of associated expenses for something that served its purpose at some point, and now it is accumulating value,but at this point is under utilized, and property taxes are significant. The question is: how can I utilize this frozen treasure?
Reverse mortgage in my opinion is not a good option. Downsizing seems more practical. I am sure that a big portion of middle and upper-middle class folks is the value of their home, but does it really count?
I'm shocked that the upper middle and upper class numbers aren't higher. I would have thought upper middle would have been $600-700k and upper would be $1.2m to $1.5m.
That’s how I feel about it exactly
I sure don't feel upper class.
Upper Class in NY, Boston, etc…. Is much higher
Those figures are amazing! I've gone through life wondering how everyone around me is so rich that they can afford to spend money on things like walking-distance taxi fares or entry level luxury cars. I always felt that I was permanently sprinting just to keep up and that I was perhaps just a bit better off than average. Hearing these figures is a complete paradigm shift, it's made me realise that I'm actually rich!
I wonder the same thing! The middle income seem to have a retirement nest egg of $2 million plus a pension to go with their 401K and Social Security. It seems like most people in my area have that, but I just don’t know. I certainly don’t!
No, you’re not. These figures are meaningless without population numbers beside them.
Can you put numbers of people in each category? On these numbers I’m richer than mr. Musk. In fact, he’s poor compared to me.
Remember the key is not just what you earn, it's what you burn.
This really depends on your location. Any large metro coastal area is much more expensive than a rural area in the US so it takes a lot more to be wealthy.
Every teacher and cop in the NY metro area has a guaranteed pension equivalent to having millions of assets the second they pass probationary periods or tenure. Just have to get through the 20 to 30 years and it's yours.
Wow, this sounds crazy bc here in SoCal, even at 2-4 million net worth which we are
are upper middle class not wealthy, FYI
Thank you for doing a great public service!
If you live in a city on the US West Coast and have lived in your house for many years and have paid it off, your net worth will make you look like a tycoon, even if you have a paltry income.
Love your video as for myself I worked my way to the top at age 30 then retired at 47 I now know where I stand with my net worth. Everyone is different but, I think we all have it in us to accomplish more than our parents. My father is illiterate worked all his life for under $20k/year, My mother had a HS diploma worked as a secretary made about $25k. Seeing them struggle with money made me more determined I would not have those financial issues in life. America is still the greatest country in the world, I am older now but, would go again to defend America for my children and grandchildren.
These figures are way too low. Someone with $680k net worth isn't wealthy. They are middle class. I've been tracking my net worth for 4 years 1st year was $547k then $667k, $883k now $1.1m... I am not wealthy... I have 0 passive income. I am 40 years old.. I have to work for at least another 15 years. (Hopefully only 15 years) I save, I invest, I budget. But I don't consider myself wealthy (in America, compared to the rest of the world I definitely am) I only make $70k a year... I've just been able to compound my money over time.
As a retiree I really enjoy all of your videos Azul. I forwarded your videos to my son in his early 40’s and he is now subcripted as well, I don’t think I’ve seen you do much on the security of our Social Security system. Surprisingly, I found myself in the upper section of your network category which frankly surprised me. With my social security and annuities I have little need to drawn on my retirement money. I also have no debt so after watching your videos I feel pretty secure. I guess the only thing that could make things a little tight would be if my SS income were to disappear. Can you add some comments about your view of the future of SS? And thanks again for your great videos.
SS will not disappear. NO political party would do that. Sometimes you hear dems say “Republicans want to gut SS”. That is a lie.
I have found your series very helpful and hopeful! Most people including myself are to a degree are financially illiterate. We don’t have mentors or even with successful family members like they don’t have an actionable strategy to pass on or way to communicate what they did for success. Like take my dad for instance. He said he watched Louie reiukeiser and read prospectuses. So I tried it, learned zero! Based on what I’m seeing in your videos I could retire now at 59, however I enjoy my job and going to 67 would not be a huge stretch. I’m kind of doing bucket list stuff now while I’m still working my last years. So I won’t miss out on such if I pass early or have more health issues. I think I’m on track for doing real well. Probably above middle class but below the upper percentiles, like I almost got there!
Another great video. I wish many people would understand the path to becoming "wealthy" is attainable by nearly everyone and your words are spot on. Live below your means, invest in yourself, continue learning and never give up will take you a long way. Bonus points if you're lucky enough to choose the right partner fairly early in your life. Do this and one can go from homeless to retired very comfortably after raising and educating 3 kids. A bit oversimplified, but the process works.
Should you count pensions in net worth calculations? That doubles what my net worth if it is also counted. I don't feel wealthy even if just my assets outside my pension according to your clip puts me between upper middle and wealthy. Close to the 600k mark. One thing I have found out about retirement , wealth can still grow if you are frugal.
Your videos are professional,informative,realisic and respectful; well done,sir!
I'm in my final year or two but I had to reduce my hours three years ago due to stress. So, that's already knocked a chunk (maybe half) of what I could have saved if my job hadn't turned negative. And stress is a killer, so something had to give.
Retired 3 months ago with roughly that amount ($250K). Downsized to a house I could afford outright. With a modest work pension and a little social pension I will be just fine! Probably even get in a little travel once a year.
How old
@@rossgooding7423 Be 63 in May. Moving from an area with a large population to a more sparsely populated coastal region. Slow down the need to spend significantly. 😁
@@davidpetersen1 One order of Golden years coming up!
are you in US ? How would you pay your home taxes and car insurance ??
@@fwefhwe4232 Nope.. not in the US thankfully. You folks seem to be a bit out of control unfortunately. "Profit over People" hasn't trickled down to raise all boats with the tide.
Right now my retirement income is roughly $2K/ month. I am mortgage free. I no longer drink, smoke or gamble.. believe me.. these 3 vices are budget assassins. I stick with a little pot I grow myself.
I've been driving 45 years claim free so my auto is down to about $1 day. My "new" house is insured at about $150/ month (which I find excessive for the value of my place..$70K.. so I will look into the competition after I arrive there full time in a week or so and settle in a bit.).
Property taxes are about $100 / month. Basic health is government covered and dental/ vision is taken care of by my work pension agreement ( I worked for Chrysler.. such an awesome pension package for people of my generation.. that of course has changed drastically for the new hires. 🙁) Apart from power, internet, gas and food I really shouldn't have any other utility type expenses.
If I chose to do nothing like fulltime work again I would be fine but the reality is even though I finally left the grind of the assembly plant doesn't mean I will stop doing work type activity and making some $$. In the last 3 years I have upgraded my tool shed with new equipment.. large generator, new table saw/ miter saw.. etc. As long as I have my health I will always have an opportunity to make a few dollars and stay active.
My son graduated last year and started his "big boy" job. I'm teaching him to save, invest and hit some goals: get to $1k/year in unearned income, get enough investment income to cover all basic expenses, and the big one, get enough investment income that exceeds your earned income so you can have more choices in life. When you hit a critical mass of wealth the way you invest changes too. It's less about saving for emergencies or that dream vacation, it's more about how to manuver your wealth into higher returns with less taxes so doing what you like is a given. The sooner you can achieve this mindset the better.
Yea, the faster you can get your money working for you the better. Passive income is ideal, as long as it’s not a ponzi scheme like NFT’s or crypto
Wishing I had ‘met’ you years ago Azul. Love that you take us outside for a walk while talking about our future and the advice you give! Thank you!!
When I was young, I wanted to have 1 mil by 40. I'm 38 and have 600k. I know that is very good but I have made mistakes that have hurt my career and earnings. I'm tough on myself for not doing better, but still thankful for having a good career and good life. One mistake was that I was scammed by a shady realtor when I was going through a divorce and sold a home for a 40k loss when I was told I'd break even on it. I could have held it for a few years and made 70k on it. The other mistake was not starting my career earlier. I save around 50% of my income, though. There's always room for improvement.
You’re on track for success (and doing better than most). Dave Ramsey has great steps for success. Advice: Don’t just focus on the numbers. Also, find a good Bible-based church for a spiritual foundation. Look back to learn, not lament. Your windshield is larger than your rear view mirror. Again, congratulations.
It was good for you to have the '1 million by 40' goal, but you don't need an age based goal now that you have capital. Your priority now should be to deploy and invest your capital for maximum returns while managing risk according to your circumstances and personality.
Just make the right investing decisions and the results will come. Keep up the good work.
I came into the workforce doing work beneath young people of today and I’m still in the line of work, making a darn good wage at this point. I say beneath because we don’t have much success keeping anybody under 30. I do work Americans won’t do just like illegals. Me and my wife who also makes a good wage, for years on end, we work all the OT we can when it’s available. It’s just automatic. These days, we are fairly wealthy. We own two houses and live a nice life. I always hate it when someone makes a dumbass comment, “must be nice.” Usually comes from the type that would tell us how they’d never work that much, or the type that my work is beneath, the 40 hour complainer type. They choose to struggle, we didn’t. I always figured, I’d rather be at work making money than sitting home broke with just enough money to lay on a couch watching tv. First thing I always ask a person who complains about struggling is how much they work. Seldom do any of them work more than 40. A person can rack up 3-4 14 hour days in a week and still have a life, it’s just less couch time. My pool guy in Florida was complaining one day about making it. His answer was 40. I prioritize time completely different than these people do. I get leisure time doing things I love on nice trips, but when I’m in the thick of shit, it’s about making money. Couch time is an expensive, non fruitful experience I don’t need on a daily basis, watching rich people on a tv, lol. If I’m not at work, I’m at the gym, or doing something exciting.
Most banks consider “high net worth” to be at least net $1 million in liquid assets (not including house). This would be a bare minimum to be considered wealthy and would be barely upper middle class in many large cities.
Do we count Pension and 401k? $600k seems kinda low to be wealthy.
It would interesting to break this down by state or groups of states. These numbers for CA would be much much different (for example).
@Goat Skills like developing fusion (Livermore, CA) or ChatGPT (San Francisco, CA) or general farming (Central Valley, CA) or entertainment, shipping, refinement (Southern California)? Which skills are you referring to?
Purple sunglasses! Yay! Wear them more often. They look good. 😎
I guess I would be considered wealthy+. But I recently lost my wife and I would give every penny away to have her back. We worked and saved but still had a great life. I am recently retired and completely out of debt except for small mortgage balance (>40k) that I keep for tax purposes. But I agree with other people in the same situation.... I don't feel wealthy but I do have plenty to pay for whatever comes along.
A lot of people are saying X Amount of dollars isn't enough and really, it depends on the people's situations. It depends on a lot of things. It's "not good enough" if they have debt and are renting. If they are debt free and own everything they have, including their home, they will be fine as long as they have emergency funds put aside and enough residual income to support their living expenses and taxes, with some left over. I know a retiree that doesn't have much coming in, but he owns everything he has, and he seems to have enough money to pretty much do whatever he wants. He makes his rounds at the local craft breweries and eats out and goes to the movies anytime he wants, and he has enough money to jump on a plane from time to time for vacations or visiting relatives.
I am 34 and in that wealthy category but I sure don't feel wealthy. My stock portfolio has been in the toilet the past 2 years. Hopefully things get better. And for those of you at the lower end of the spectrum I was there too years ago. You have to make significant changes in your life to get ahead financially many sacrifices and struggles but keep at it and you will get there just don't give up because trust me you will want to.
Vote Biden out
@@justsomerandomgirl Pretty hard to do when his supporters cheat...
@@justsomerandomgirlHe didn’t start the fire.
@@kevinmcmullen..Prove it.
Good job, but your feeling is right. Look under the covers of the economy and markets to get a good feel for what is coming so you can adjust.
Thank you. I hope these numbers are correct because I’m not wealthy enough to claim to be. By your chart I’m wealthy. I say I’m frugal and worked hard.
I know people that make 100k a year and are living paycheck to paycheck
Keeping up with the Joneses will keep them broke.
58% of Americans are living paycheck to paycheck that's a shame. I did when I was younger but that nonsense as you get older.
My wife and I have over 1.1 mil in net worth, yet I’m still debating weather I want to spend $30K on a new car. I don’t feel wealthy at all.
Nice sunset and good info. Paying off a home is key, imo.
Great video! How do you quantify a pension and social security payments when calculating assets? 401’s, 457’s, home equity, and cash savings are straight forward but should it include a pension and SSI when calculating total net worth?
Azul what branch of the military did you serve? I retired from the USAF in 2015 after 20 years of service. 🇺🇸
Good basic information! It seems to me that the “powers that be” never want the middle class to be comfortable . Biggest factor is the rate of inflation. Something we (middle class) have no control of, what’s a good nest egg today is a drop in the bucket tomorrow.
As a retired military member it would be cool to see a vid on military retirement.
Yeah VA Comp and a military pension equals well off.
@@metalmike570 you're not kidding. Friend of mine retired Air Force Lt. Colonel makes so much money and free healthcare.
The VA is supporting our soldiers in a big way.
@@Userspice4275 I know he earned it.
God Bless the USA.
I would say it depends on where you live.
I just paid off my house at 38 - what’s your advice on what I do next?
Make sure you max out the appropriate retirement accounts (401k match, then Roth IRA, then traditional 401k/IRA). If you want to retire earlier, you may consider contributing to additional accounts: annuities, CDs (right now getting 5%, though variable), and your taxable brokerage account. Consult your accountant or local finance professional to recommend what’s best for your personal finance situation.
My advice is start collecting photos of dead presidents 🤑
@@AlexFlavellI would wait for a market downturn, at least the end of the year before putting any real money in the markets.
Inflation will make middle class $9,890,887,167 as net worth soon, expenses $34,689,007,856 so things look good until expenses are deducted
I like your style...for us it was buying a new car and keep it up to 12_15 years...pay yourself first , live below your means..stay out of debt (this is the most important) out of debt out of danger😮, be generous, be so thankful, and always keep mind your money 💰 and assets, no one will ever take care of them like you 😉
Correct! Stay out of debt - unreasonable debt anyways.
I have recently discovered your videos. I absolutely love them. You are such a kind and thoughtful man. Thank you. Keep the vids coming. Great work.
I like your motivational talks. You seem like a great guy.
Based on the numbers you shared, it’s scary how little people save for retirement.
I realize that I am much better off than I thought I was by comparison, but I still don’t feel as though I’m anywhere near where I want to be.
Thanks for giving me perspective.
With all due respect, not sure where you got that number from. $608,900 to be considered wealthy in the United States in 2023? No way!
Maybe 25 years ago. I think it's more like over $2 million to be considered wealthy today.
agreed
How does the fed track net worth?
I don’t even feel wealthy at 2 million
@@matney12 - Well, you may not feel wealthy, but you should definitely feel grateful. Well done! 😀
Do not get fooled by outside look. There are many people living luxury life style but all they have is debt. Having $600k in your account is a good accomplishment.
I have worked with people in their 30's and 40's and some of them have not even started saving for their future (401k, etc). I try to convince them to even invest $100 a month, but they say they can't. (You don't miss it if you have them take the cash out of your check). I just don't get the younger generation...... Thank you for your videos. Hopefully some younger people will take your information and start planning for their future.
Thank you for telling people to get education to help themselves move up vs feeling sorry for themselves!!
Just add that education doesn't need to be in a college. Plummers, electricians anything in the trades pays well and will only continue to grow. Plan well from highschool and you could be done by 40 easy.
Yes, just go into debt in the hopes of finding a marginally better job that probably won't exist by the time you have qualified for it, and which will be given to somebody younger if they are available with the same education. As to the OP, these people are not "feeling sorry for themselves" you arrogant son-of-a bitch; they understand what is possible in ways that you will never, in your arrogant smug self-importance, ever understand. They are realistic about the virtually non-existent opportunities that are available in the ant-labor, hyper-capitalist, socialism-for-the-rich rugged-individualism-for-everyone-else, dystopia that is America.
I just found your channel and am enjoying your videos. On this topic, even those in the upper echelons, assuming they apply the 4% rule, are going to eke by. Add social security and it gets better, but taking it early adds longevity risk. What have you seen with your clients? Has 4% been too conservative?
Wealthy is 600K+? No way. That's way too low. I'd say wealthy is 3M+, maybe even 5M+.
Wealthy in the US is now $20MM+
Exactly! You need at least $3M to retire with no worries…
@@davidlightman9551 That would make more sense, but the title of the video is net worth.
All these quintile stats are really misleading unless they are age dependent. I saw a figure once saying that 60% or so of the population would be in the top 20% of incomes at some point in there lives, but people looking at quintile see them as mostly static.
@@infoseeker Very true. People also want to show their best side …. and they should. Hard to see how poor they really are. A lot of people really struggle.
100k seems like nothing with inflation today
My net worth is $1.6M, liquid assets are just over half that. I do OK, but I don't feel wealthy by any means. My wife and I started at zero 40 years ago. Nothing inherited at all, parents were poor. We raised two kids and worked hard, did not spend beyond our means and always put something away. Our house is small, but well maintained and updated. No debt at all now...finally cleared that up a few years ago. My wife is retired and I hope to do the same in 3-4 years. I hope to put away enough in that time to have liquid assets over $1M.
Well done! I hope more people can follow your example.
@whiskey, congrats to you & your family
I jumped from upper middle to wealthy apparently with 1 house transaction in 2021 and what home prices did in the last 2 years. Cool! Wish I could have done that X10. Good vid. Thx
Love the scenic backgrounds although I’m also a train fan, so every time I hear one go by I want you to turn around so I can see it……😂
Where does 401K fall into the net worth formula? We have assets (house as you mentioned), cash in bank, and many years of savings in 401K/retirement fund. Does that add into net worth?
Sure it is an assert, include Roth and other cash, vehicles and cash
People need to be careful about including the value of their home in the net worth calculation. Being house rich, but poor otherwise is problematic.
I include it in mine but it’s paid off and up 20% over what we paid for it 3 years ago.
That's why I use the purchase price as the valuation on my net worth statement. Not the most accurate, but it better illustrates the progress I have made in the past year rather than riding the coattails of the real estate market.
Net worth tends to be tied up in untouchable assets. Just as one can’t buy groceries with home equity neither can one meet daily living expenses with retirement funds, unless one is actually retired.
Your home equity is part of your net worth. I like to break mine up into its components. Liquid and non-liquid (equity). Mine is broken into home equity, the amount in retirement accounts both Roth and traditional, taxable funds, and finally cash. Some is easier to spend than others. Of course cash is the easiest. Then taxable funds you’d have to sell and pay capital gains on and then traditional retirement accounts of which you’d have to pay income tax on whatever you take out over a minimum threshold, and then finally your Roth retirement accounts that you probably want to spend last unless you need some funds without increasing your taxable income in a particular year.
Once you're retired and don't need to live close to work anymore, you could consider moving to a cheaper area though. That might enlarge your retirement savings substantially
Class is more tied to income and expenses than wealth IMO. On paper I'm pretty wealthy, but my current income (~$50k) and expenses (~25k) are more modest and in line with a middle class life. You wouldn't call a paycheck to paycheck lawyer or doctor earning six figures lower class, right?
Your a wonderful man such good solid advice
Wish I had parents with you wisdom!!
Discipline, discipline, Discipline! Retired, 61, about a million +/-, literally no debt, live modestly, no worries. Best friend still working, no fiscal discipline (admittedly) spoils grown kids, constantly worries about the future $$$$, lives large . DISCIPLINE!
Darn near any homeowner on the West Coast with a paid off house is a millionaire, and probably living paycheck to paycheck…
But how many people in CA have paid off homes?
This is true with me. Live in the SF Bay Area and in the same house for 28 years. The house is worth close to a million but our other assets are worth more because we've lived below our means (not easy in the Bay Area) and put our savings into stocks that have done well. We had to work instead of vacation and drive cars more than 10 years old for transportation. We've retired now and are looking to relocate to a cheaper area, all the years of sacrifice have allowed us the peace of mind of a stress free retirement. So Azul's advice is spot on.
You don’t need millions to be wealthy, folks. If you think that, then (a) you’re either living a very extravagant lifestyle, (b) you can’t do math, or (c) are unaware of the most efficient ways to make your money work for you. To provide an example, if I know I need $96k/year ($8k/month) after-tax to live on (what I consider a healthy/comfortable lifestyle), then that’s my starting point. Grossing that up for a 30% tax rate let’s say, we’re at approximately $137k in before tax income that I need to generate from my assets to retire. Now, if I know of a way to generate 10% returns on my money consistently (cash-flowing real estate is my weapon of choice there), then I simply need $1.37mm to fund that lifestyle. It’s that simple.
Besides the level of your income it's important to be as self sufficient as possible. I repaired my own cars, did my own home maintenance to the fullest extent possible. Whatever you buy, keep it until you use it up. If you get married, stay married. Divorce impoverishes the man and the woman. Having a wife who worked as hard as I did made a big difference also. We were lucky enough to stay at the same employer for 35 years. We both did factory work and retired with our house paid off and a 7 figure 401K so you don't need a college degree to succeed.
@@i_brought_a_flower You haven't a clue what you are talking about. My wife and I were factory workers, no college education. We used common sense to make decisions throughout our lives. We didn't drink $5 coffees every morning, didn't buy a new flat screen tv just because they were the latest and greatest. We bought one when our old tv quit working. We cooked a majority of our own meals at home, didn't eat out 5 times a week. We never had food delivered. The trouble with you people is you don't know how to do anything for yourselves. You want to pay someone else to do it all for you. Re-read my original post and pay attention this time. If you still haven't figured it out, go back to 4th grade and retake Reading Comprehension and stay awake this time.
Lastly, stop voting for democrats.
Technology has changed significantly since your days as it has changed everything!!! Not only will the new generation have to keep up with technology but they have to have skills to compete in the job marketplace which is becoming more fierce everyday. In addition, manual labor jobs are being replaced by automation and that will be a factor as well. Lastly, inflation will cut whatever value the dollar has and just because you earn high dollars, it doesn't mean it will buy much!!!
@@LWRC I kept up with technology throughout my working career. The machinery I ran went from switches and levers to computerized controls and I learned how to operate it as well as doing some troubleshooting. You're focusing on income while I am emphasizing reducing spending. You can make big bucks but if you spend it all because you can't do things for yourself, you're likely to still be losing out.
What kind of camera are you using in this video? It looks great.
It depends on where you are in life but generally I think passive income is more important than net worth and net worth is more important than active income. My goal from a young age was to learn how to save and invest for generating passive income so my loved ones would be fine even if I got hit by a bus. I was in the bottom 20% 23 years ago when I joined the workforce. But my net worth snowballed as a by product of that strategy and now I hope to be in the top 1% at 50.
I had that same mindset. Was always good with money at a young age. Saved at the age of 17 from my first job and every job since then. However I learned if you have lower income by your own personal standards, you should really be investing in yourself and seeking higher pay, before you get too caught up in saving and growing. If passive income is all you think about it could limit your abilities to seek higher pay as you're distracted.
@poonekar what passive income strategies are you using?
@pilot88pro I can say you are definitely right about wanting to be careful about passive income distracting from your career. I thought I HAD to do something else as I had limited potential in my career and my wife didn’t want to work. So I bought a duplex and spent a ridiculous amount of time fixing it up while my kids were young. It’s been a ton of stress and never ending problems. A few years ago I snapped up a single family house that I thought I could flip and be done with the duplex. Well I’ve had it 4 years now and still working on it (still vacant). Lots more problems than I realized, and now labor costs have basically doubled from when I bought it. I NEED to try to do as much of the work myself, but now I just don’t have the motivation. I would have been better off just putting all my savings into an index fund…
@@eray9934 primarily long and short term rentals, but stock dividends help too.
Does net worth include the value of or your home and cars, and retirement portfolio?
Good video. Tough to retire on 250k unless you have a good pension or relatively high social security.
You can not retire on 250k unless you have a super pension the last years won't be so good if you worked all your life how could you only have 250 something funny going on or you a lazy do nothing person you must move up the ladder fast these days or your fuc/ed at retirement
Super helpful. I’ve been researching this topic to see where I’m at. The median is a better indicator 👍.
I see a lot of bodies on the sidewalks in the future. How are people going to afford nursing homes when they run 4-6k+/month. I'm in the wealthy group but don't feel like it. Drive a 20+ year old vehicle with 276K on it and just got back from the dollar ($1.25 now) store.
I’m in the same position as you describe & retire in 12 months, so the Im going to sell my large family home and build a home with a small self contained 1 bedroom apartment attached. This house will not have any money owing on it & I will live in the house and rent out the studio until I need care. Then the plan is to move me into the studio & hire a carer & they can live in the house as part of their wage to take care of me, or my son & daughter in law can move into the house & rent out their house to boost their income & take care of me. The cost of nursing care eats up a big part of your life time of savings & I want to leave my lifetime of hard work to my kids not some care corporation. The additional rental income in my initial retirement years is to fund the travelling I want to do. I don’t know enough to be investing in shares etc so want additional low risk income. I’m in Australia & rents are around 40% of your income & we have state funded health care. The new house will be solar powered so the energy costs will be negligible. I had to think outside the box to make use of what I have & minimise any future risk. If for any reason I need to sell the new house in the future an income producing property or multigenerational home will be in demand.
Hey Larry, I don't know about you, but I'm not going to afford a nursing home, because I'm not going to live in one. EVER. Part of Azul's message is that we "invest in ourselves." Taking time to be healthy is a huge part of this investment.
Visuals in this video were good-(the numbers in red)
. Hope you will continue and add to that beause it makes it easier to absorb....and nice sunset
I make $60k/yr and my net worth is almost wealthy. Dang. Even more than upper middle if you take my paid off condo out all together.
High income earners need to do better. They would all be talking about "bootstrap" BS if I complain about my salary, while I'm actually running laps around them. 😅
I guess you stayed in at night, cooking dinners at home. And didn't spend a lot on vacations.
@@metalmike570 I eat out once a week. I take a yearly in-state trip to the beach and take a modest international trip every 3 years or so.
@@RandomJane104 You rock!
Love to hear this. The real pros, like you, live far below their means. You live disciplined, and that is to be admired. I make around $80k per year, my only debt is in my mortgage. I take regular vacations in the form of cruises, I eat out two to three times a week, have an aggressive retirement savings, and have a small nest egg for emergencies. Getting out from living paycheck to paycheck. Let’s just say I’m getting better at financial discipline.
So glad I found your channel! I have invested 100% in the C fund of the TSP, and have been max'ing out for 15 years -- based on very helpful recommendations when I was getting started. Just adjusted to 20% in the G fund in the last few years. Are you considering the money tied up in one's retirement funds as part of one's net worth?
How do you factor in a pension in your net worth? For example, my pension pays about $50K annually. I imagine it required a little more than a million dollars in investments to generate that payment. So, do I count that as an asset? Thanks!
Yes you would.
But you shouldn't overvalue that asset. Look at what an annuity would pay in equal terms (age, spousal benefits, etc). I would estimate a 50k annuity for a 65 y/o male with no survivor goodies at more like 800k ish. It's voodoo math.
Another interesting video, thanks for sharing. Regarding the median retiree net worth you mentioned in the video, I am wondering, is it enough to retire on?
I wonder when looking at the median, would looking at different region based on cost of living give a clearer pic?
Absolutely, cost of living varies badly in the world.
I don't know if this data is available, but I would be curious to learn about the net worth of these different groups with housing taken out of the equation.
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According to the US Census, 90% percentile net worth is $1.4M. 90% would be the median of the top 20%. So not quite sure where the 600k figure is coming from. I cannot link to the US Census stats or UA-cam will delete the comment but here is a copy/paste from their stats:
The Value of Household
Wealth by Percentile: 2020
Percentile 2020 dollars
10th. . . . . . . . . . . . . . . -1,450
25th. . . . . . . . . . . . . . 11,670
50th. . . . . . . . . . . . . . 140,800
75th. . . . . . . . . . . . . . 526,200
90th. . . . . . . . . . . . . . 1,410,000
Also, you state that median net worth is $120k then state that the middle of the middle is $104k. These two groups should be exactly the same as the middle of the middle group of an odd number of groups must be the median of the entire group by definition. Whatever source you were looking at botched it.
I loved knowing where I fit in the scheme of things. My daughter is 18 and graduating. We have a college savings plan. Any tips on using it? We also have prepaid college. I want to distribute it to her in a way that will teach her to save. I also want to not dip to far into my savings.
A net worth of $608,000 qualifies one as wealthy? Many people have home equity alone amounting to that much.
I gained my undergrad while i was in the military and then my Masters when i got into Aerospace....made a huge difference....love compounding!