That’s awesome Good work!

my dog

@@stephenk6045my dog

This is amazing. Road to 2 Million dollars

you'll be amazed how much shorter it takes to reach 2 million and from there 3 million etc...

So you should have to pay a wealth on that $1.1M net worth every year, right? Otherwise you aren’t paying your fair share?

@tommyboym6563 I pay what is expected of me with income, sales and property taxes. Cheers!

@@Brad_Boersma this is why we need a wealth tax. Vote Blue!

Yeah, that's the way to go. Who cares about NII and IRMAA - take you gigantic income, pay your taxes, and you can live like a king. People don't believe saving and investing works, but over 40 or 50 years, it sure does.

You could just live off earnings and take out more on high earning years and less in low interest years@@Gabe.G_Live

from another immigrant, arrived in the US in 1993 at 27y/o 0 networth , retired at 55 in 2021. currently 57. started investing 27 yrs ago and had a good paying job. made it to 97 percentile in investable assets NW but only driving a honda. we are relatively frugal but comfortable. we attained our american dream.

@@Random-ld6wg congratulations! That’s sounds awesome! And great to hear your story, and also an immigrant. Me too, I stop working at 50. And do the things that I like and take care my kid all through school, now in college. I feel so grateful investing early and be consistent. Wish you have a wonderful holiday and happy 2024!

@@aferrari5538 same thing my son is a sophomore in college. happy holidays!

When will we start taxing wealthy people like you so that you pay your fair share?

@@tommyboym6563 No worry, IRS did very good job on that!

not only that, but the earning potential of that Capital has risen to about $10k per year.

Damn good job . I’m on the same boat but im 37 with 340k .

Just curious as to what kind of a small motor yacht you are considering buying? I am retired at 60, and my dream has always been to get a small cruiser, but I haven’t even started to consider options.

I'm a retired Army nurse; got a GS position immediately doing the same job at the same military hospital. I figure two retirements are better than one; and still healthy enough to enjoy full retirement.

Good point about saving even in retirement. Once you adopt the saver/investor mentality you carry it with you beyond your working years.

My net worth is the median for the group which is two decades older than me. I am content with that. I am not stopping my investments or savings, but I also am not comparing myself to the top percentiles.

I started at 19. I'm 23 now and I wish I started 2-3 years earlier!

@mvloz113 wow! That's awesome. You're going to be so far ahead by the time you're my age.

We felt comfortable during our 20s and 30s and it truly seems in our 40s is when our net worth exploded overnight! Though maybe I was busy working in the office my whole career and not until 2020 at age 43 and working at home I finally took the time to analyze our finances in closer detail.

in the 2-3 yrs before the pandemic, had annual gains of 2-3 times of my annual salary in NW with 30-40% of gross income invested per year. so the growth was mainly from compounding of market returns and getting good returns on some individual stocks. since retirement 2.5 yrs ago and drawing down assets and no money c0ming in, portfolio is up in retirement slightly more than 2 times my highest salary.

I agree, and I would add that with compound interest your gains will be even greater than the numbers you provided - as you are always earning interest on your interest as well.

yep, it’s compounding and really accelerates the portfolio. keep investing though to keep it going.

That's great. I'm 37 and was in that same boat. We started putting 10-15% away in a brokerage account as well, so we will have some money for early retirement. I also max out my HSA because it can pay for insurance premiums before medicare kicks in. Or you can just work until 65 and be filthy rich, but I figure I'd rather retire early with 10-15M than work longer for 20-25M.

I always include home equity in net worth. Common knowledge that it doesn't generate cash flow in retirement is wrong. You can rent out part of it, or take out a reverse mortgage, all while still living in your own home until the day you die. Plus late life medical bills always loom on the horizon, and you can sell your home to pay those bills and fund any stay in senior care someday. Why not count the biggest financial investment most of us will ever make, especially when it can help in so many ways?

Well, thank you for always tuning in! I like to calculate net worth excluding Home value as well. Because I think investable assets kind of give you a better picture on the lifestyle you’ll be able to fund when retirement comes around. However, I have realized overtime that it’s probably best to calculate two different net worths. One, including your home value, and one excluding your home value. Both valuable, just for different reasons.

@@ErinTalksMoney , i have a net worth of about 1.4 million wirh the house being only 150,000 of that. If i had no house, the rent here is now 1100 a month.. Property tax i pay about 1100 a year. Its a 2 bedroom, i bath with a garage brick house with metal roof and enclosed porches that could be used as bedrooms i suppose. . Very inexspensive to heat and cool.. Paid 100 grand for it 10 years ago. Most of net worth is index funds. Have 4 utilities that cost 200 a month. Zero debt. Do not receive social security or retirement funds yet. Have 1 million in retirement funds and with low exspenses allowing it to grow . Have a taxable account that provides a very modest income. Started working on family farm as a child and a corporate job at 20. Saved aggressively starting at 20 also. Current age 66. FRA for me is 66.5 . Trying to decide when to start collecting a payment from SS or retirement funds. So far have not needed the money. Unspent by yearly capital gains and dividends from taxable investments has accumulated to 70 grand in a couple years rather than having it redeposited so bought a CD i was tempted to buy a truck but bought the cd instead. . Have 18 year old convertible, not the best mountain car. So considering a 2 or 3 year old small truck if i can find one. Live in a nice part of a small rural town. I can walk to grocery store, post office, church, the few stores we have easily so drive the car very little anyway. Do have friends who take me to Arizona, Colorado and utah points of interests a lot. They find my convertible uncomfortable. So they drive there large pick ups. I go along for the drive. Help wirh gasoline when they let me. Biggest exspense is medicare insurance. From 58 to 64 had no medical insurance but never sick so was not a problem. Started at 65 to have medicare just in case. Also bought medigap insurance, G high deductible just in case . Its 366 for the year. I wonder what else i should be doing to enhance quality of life ? President of local Rotary club. Secretary to mens church group. Do a lot of service , donate time at a food bank etc. Been divorced 21 years and due to religious beliefs been celbate all those years too.. Play basketball with sister missionaries and there friends they bring to church. Seems ladies more my age have Healrh and Debt problems..Finding a lady with no health and debt problems a huge challenge. I just live the church teachings of no alcohol, tobacco, coffee, tea or caffeinated soft drinks when i joined the church at 23. Eat red meat sparingly. Chicken mostly. Use crock pot a lot. Went on a singles cruise but was lonely . Not into the bar scene.. Dont gamble. Enjoy walking or riding a bike. Again ladies my age have health issues and when i try to give information to help them like loose weight, eat heathy, of course doesn't go well. Any suggestions? .

Merry Christmas! 🎄

Agreed! My wife is the spender, so I just have it set up to invest an agreed upon amount automatically out of our paychecks. We do our budget together monthly, so she knows if the savings dips below our emergency fund amount, then it's time to slow down on the spending for a couple months. Right now we are in the yellow because we just paid for a years worth of tuition up front to get a 5% discount, and we paid in full for a vacation that's 3 months away. So we are going to cut unnecessary expenses for a couple months to build our cash reserves back up. We do 1/3 taxes, 1/3 investing, and then 1/3 we live on.

Hey Rick!! I’ve seen your name in the comments section for a very long time 😊thanks for sticking with me! Baby and I are doing great, thanks so much for asking - make sure to watch the video this coming Monday, baby J and my husband Steve will be making an appearance

Hang in there regarding those student loans. I paid mine off, month by month, for several years. It taught me about frugality and budgeting. Now, 20 or 25 years later, I'm that much better off for having learned those habits. Good luck!

@@TimIsThankful I’m lucky that all my loans are federal loans taken out while interest rates were low. I’ll just be following the standard payment plan and focusing on investing. I don’t understand the fear given how borrower friendly the government is.

Happy holidays Steve! 😊

You are absolutely correct. Most of my family/1st cousins are close to me in age (62-70). We are all in the 90th percentile, but all of us drive used vehicles, and live in modest homes.

I can't wait for the next one in 3 years to see how things trend. I feel like younger folks are investing more, and that generation should curve the numbers up.

If anyone is actually trying at all and starts investing in their 20's, they will be in the top 90% easily. It's only hard when you get a late start. But even with a late start, the best time to start investing is today.

@@Joenzinator We didn’t seriously start until later but agree. Just need discipline.

That would be an interesting topic!

Also, money for college alone would be interesting. If someone paid for even half of my college my NW would be over 1 million instead of 350k. Still doing very well but the math shows how much valuing your child’s education over bs spending matters.

Lots of studies show inheritance accounts for very little to zero percent of wealth for millionaires. Millionaire next door and Ramsey both point to this in their research. I would guess most of the 90 & 99 percentile are high income individuals. I'd love to see that data.

I read recently- I can’t remember where- but it was in the fact that people were inheriting estates later even after they retired. I started looking at this since it will really affect taxes with RMDs kicking in soon. To get inheritance at the same time would be a big deal

@@matthewtravis24 was just going to post this, good job

Then you weren't calculating net worth. It's infuriating how many people don't include their home in their "net worth" calculation. People should stop using net worth if they literally don't know wtf it is.

I don't own a home, nor do I rent. Not everyone's situation is cut & dry and no I'm not going to explain how that's possible to a narrow-minded dish*t like you.@@robloxvids2233

household

Glad you enjoy it! Welcome!! 😊

That's what median numbers are for

@@tuan2u Median just shows the dead middle. My proposal gives the average of the group minus the outliers.

You must just be out of touch with reality. Clearly not broke

@@AusValue well. Saving/investing 50% or so for years on end helps. We never go out to eat, rarely take vacation where we're not just staying with family, own a rental. It certainly didn't just happen.

Head of household

Thanks Nathan!! Merry Christmas 🎄

Happy holidays!

Nice! Welcome to the channel 😊

Great question. I'm wondering that as well. Are these amounts for individuals or for households?

Yes!!! 😊thank you and merry Christmas!

@@ErinTalksMoney Yes Indeed!

Merry Christmas 🎄

I'm no expert, but I include my portion of my pension in my net worth (i contribute 6.5% while my employer contributes 7.5%). I can log in and see what the balance is. It appears to be accumulating interest at around 3% annually, too. That is the portion I could take and run if I decided to back out of the pension.

exactly. it's actually a liability for me personally. since i have no plans of selling, i am stuck with much higher property taxes every year. net worth is higher but it also decreases my disposable income to invest.

It’s household

If you're using it to compare, make sure it's the same formula as whoever you compare to, otherwise it's not accurate data

@@bryan8638 in California, most homeowners are millionaires. But it’s basically dead money. My personal investments excluding my primary home is producing cash flow to fund my lifestyle. But overall, on paper a house is an asset.

This kind of thinking is silly. It's still an asset that you have that you could sell. Clearly your net worth would be higher than a hypothetical you in a parallel universe who lives in the same house with a mortgage or rental agreement. Imagine three versions of you, owning, mortgaged, and renting the same $200k house. Does it really make sense for the renter and owner to both be at +$0 NW, and the mortgaged version to be at -$200k due to the mortgage? I wouldn't necessarily consider the house a financial investment, or use it for cash flow calculations, but it is a valuable asset you own.

Not including your home is a good idea for your planning. While it does not match the formula most of these statistics are based on, it is a truer picture of the assets you have easy access to when making investment decisions, without a change in lifestyle.

The cliff is what you want. Especially being that you are 30. The blood bath is when you can get the stocks cheap. Keep investing. Keep the ship steady. Grab your balls and buy more!

It's household. The DQYDJ site used in this video has more info.

Hahaha…. I first saw your second comment. And I was like when did I say sexy? This actually makes much more sense now. Merry Christmas! 😂😂

@@ErinTalksMoney I'm not sure either of these responses make sense. I guess I am just dense.

Great question!

Put as much as you can away. Compounding interest is your friend. Roth IRA at your income level is also your friend. Also, shoot for investments that average 10% ROI. If you exceed this, great. If you are significantly below this number consider changing your investments.