Money To Live

February 2, 2010

Net worth by age and income

Filed under: Uncategorized — by moneytolive @ 5:07 pm

This is a neat online tool that shows the median net worth for your people of your age and also for people with your income.

http://cgi.money.cnn.com/tools/networth_ageincome/index.html

I like this tool because it lets you know how your net worth compares to your peers. That is really what we humans care about – do we have more [—-] than the Joneses down the street? While most financial planners give clients a target number for retirement based on their income and lifestyle, another important number to aim for is average. As long as your net worth is not below average (median), you’ll probably do okay.

Have fun!

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3 Comments »

  1. mmm higher for age (the age value really surprised me and made me wonder if I was using the calculator correctly), but lower for income (probably explained by too many years in grad school) — both variations were large (to my untrained, unfinancially-literate sense). I was quite surprised at the disparity of the two values, as I don’t think my input for the latter is that far out of “reasonable” for my age. (I also had to puzzle over what net worth means, as I confess I didn’t know.)

    Comment by anita — February 11, 2010 @ 1:27 pm |Reply

  2. How do you calculate net worth? All assets (retirement, house, bank accts.) minus all debt?

    Comment by shannon — February 11, 2010 @ 2:35 pm |Reply

  3. There are a lot of different definitions of net worth, which depend on what you include.

    CNNMoney included real estate in these estimates. Some people argue against including real estate because it can be hard to value — just look at the mortgage crisis. Many homes have dropped significantly in value in very little time.

    Since I do not own any real estate and have no debt, it is pretty easy for me to calculate my net worth. I just add up the balances from my bank account, investment accounts, and retirement accounts. I do *not* include the value of my car or other physical assets (i.e., computer equipment). Some people include the KBB value of their car when evaluating net worth.

    Comment by moneytolive — February 11, 2010 @ 5:00 pm |Reply


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