https://www.thekickassentrepreneur.com/net-worth-by-age-perc…
Interesting site. You can enter your net worth and age (group) and find your percentile rank in that group. Also some other interesting data later in the article.
Dated Jan. 8 2022 so pretty recent. But it is for the USA so not applicable to many of our group.
I wonder about that calculator.
Wealthiest group is age 65 to 69 with Top 1% at a minimum of $11.2 MM.
Just for fun, I entered a $1 MM net worth for that group and the calculator said it was the 80th percentile.
Does anyone believe that 20% of the people on Medicare are millionaires?
intercst
I wonder about that calculator.
Me too. Didn’t think I was that well off.
So checked another calculator and came out 2% lower.
https://dqydj.com/net-worth-by-age-calculator-united-states/…
Does anyone believe that 20% of the people on Medicare are millionaires?
Do you have any guess on how many people in states like California, New York, NJ, Conn, Mass live in million dollar houses? Probably millions.
Here’s a third calculator. Based on 2019 data and claims to match US Treasury data.
https://personalfinancedata.com/networth-percentile-calculat…
Let me narrow my comparison range to a 5 year span. Answer came out same as first calculator.
I’m done with this thread.
Both calculators are using the same data, the Federal Reserve’s triennial “Survey of Consumer Finances” last issued in 2020.
https://www.federalreserve.gov/publications/files/scf20.pdf
Having 20% of the Medicare population at $1 MM or more probably makes sense. There’s a survivor’s bias to wealth. Poorer folks are less likely to make it to age 65 under the US health care system.
intercst
pauleckler asks,
Does anyone believe that 20% of the people on Medicare are millionaires?
Do you have any guess on how many people in states like California, New York, NJ, Conn, Mass live in million dollar houses? Probably millions.
No need to guess.
A Record 8% Of U.S. Homes Are Worth At Least $1 Million
https://www.forbes.com/sites/brendarichardson/2022/03/09/a-r…
But about half of retirees hold mortgaged homes.
intercst
I have played with those calculators in the past. Not sure what I have learned that is of interest.
When I run the “net worth with home” calculators I score in a lower percentile than when I run the “net worth without home” calculator. I suppose that is because we live in a small town and our home is only about 10% of our net worth.
I also have noticed that it is relatively easy for a middle or upper middle class lbym family to reach the 90-95th percentile, but nearly impossible for average people to reach the 99th percentile - which ususally is in the $12M plus range. I am guessing that is a function of money flowing disproportionately into the hands of people who already have millions of dollars.
It made more sense for us to retire early and live relatively well on a modest income than to chase more money by working till we died.
In our case, Ispouse’s relatively modest salary became the lynchpin of our wealth building efforts because her state pension and benefits enable us to continue to grow our investments while enjoying our retirement.
In the era of suppressed rates and inflated stock prices, I consider her pension to be roughly the equal of a $1.5M IRA even if it does not count as ‘net worth.’
Our net worth would be higher if I hadn’t put roughly $1M into cash a year ago in anticipation of a crash that has not happened yet, but I can sleep at night knowing that we can live on Ispouse’s pension and SS combined with my taxable dividends even if our stocks lose more than half their value in the coming year.
I no longer think of dividend income as safer than selling principle given that I could have sold off 2-3% of my brk over the last ten years and generated more income than I did with my vig income, and I would have paid fewer taxes, and I still would have had a larger holding at the end of the ten years.
Random thoughts while youngest grandchild naps.
I no longer think of dividend income as safer than selling principle given that I could have sold off 2-3% of my brk over the last ten years and generated more income than I did with my vig income, and I would have paid fewer taxes, and I still would have had a larger holding at the end of the ten years.
Exactly!
A lot of people think there’s some magic to dividend payments. But a 4% yield on a dividend paying stock is the same as selling 4% of your shares over the course of the year of a non-dividend paying stock. And the non-dividend paying stock gives you more control over the timing of your tax liability.
The other crazy dividend benefit I’ve heard of is the that dividends reduce the amount of money that Management can spend unwisely on acquisitions, private jets, etc. If you have a fear that Management is allocating corporate resources sub-optimally, you should be selling the stock whether it pays a dividend or not.
intercst
Do you have any guess on how many people in states like California, New York, NJ, Conn, Mass live in million dollar houses? Probably millions.
Back in 1969-70, we rented a 2BR 2Bath apartment in NYC on the West Side not far from Lincoln Center. Nothing special, the ones on the East Side were far too expensive. And at night you didn’t go too far north after dark. NYC wasn’t that safe back then. I think we paid $375 a month.
Recently I found that these had been converted to condos. And one that seemed to be the same as ours listed for $2.4 million.
Now I tell the wife that we didn’t know at the time that that apartment would become the most expensive home we would ever occupy. (grin)
Does anyone believe that 20% of the people on Medicare are millionaires?
Including homes? Okay.
This site says that the median (half above, half below) net worth for a married couple over 65 was $482K.
https://financebuzz.com/us-net-worth-statistics
Older folks are more likely to be married (65% for Baby Boomers).
DB2
texirish writes,
Back in 1969-70, we rented a 2BR 2Bath apartment in NYC on the West Side not far from Lincoln Center. Nothing special, the ones on the East Side were far too expensive. And at night you didn’t go too far north after dark. NYC wasn’t that safe back then. I think we paid $375 a month.
Recently I found that these had been converted to condos. And one that seemed to be the same as ours listed for $2.4 million.
Now I tell the wife that we didn’t know at the time that that apartment would become the most expensive home we would ever occupy. (grin)
I believe OrmontUS occupies a rent-controlled property in Brooklyn and has been paying a rent almost as low as yours for decades. That’s likely allowed him to put the money most people have tied up in a home into the stock market at a much higher rate of return.
What would your condo fees, taxes, and maintenance assessments have been on that $2.4 MM condo over the past 50 years as an owner?
intercst
What would your condo fees, taxes, and maintenance assessments have been on that $2.4 MM condo over the past 50 years as an owner?
Fair Warning - OFF TOPIC
Would not have happened. I would never raise my family in NYC. Served my two years in Rockefeller Center and moved on with my career.
It turned out to be a popular location however. We had 52 house guests in just over two years. Some were family, some were friends. A few were friends of friends - or so they said. A fair number of the managers coming up for meetings - guys I knew well - also stayed with us. And my boss would have my wife accompany me on two week business trips and move it from NJ to “watch over the place.” Turned out my wife was correct in insisting on a 2BR 2Bath apartment. I didn’t know it was going to become a free B&B.
It was an interesting assignment. And my finances ultimately recovered.
I like these sites.
As the ranting steadily increases re: “HANG THE 1%!” — it’s comforting to be happily cruising under the radar
—sutton
hanging contentedly @ 98%
no debt
took long enough
Does anyone believe that 20% of the people on Medicare are millionaires?
Probably. Their paid off home is worth $500-800k, and they have an IRA worth $300-400k, and maybe a 401k too worth $300-600k. And likely some post-tax investments as well. Oh, and 4-8% of them have a second rental home worth a few $100k.
texirish: Thank you for recommending this post to our Best of feature.
https://www.thekickassentrepreneur.com/net-worth-by-age-perc……
Interesting site. You can enter your net worth and age (group) and find your percentile rank in that group. Also some other interesting data later in the article.
Dated Jan. 8 2022 so pretty recent. But it is for the USA so not applicable to many of our group.
Thanks for pointing that out Tex, a lot of what happens on Metar has nothing to do with we foreign types which is why I use thread ignore a lot.
Tim Back in chilly Canada after a couple weeks in the sun and recovering from a hellish return flight
due to our Sunwing pilot who landed in Varadero and was immediately whisked off in an ambulance to a Cuban ER with severe COVID
Sunwing flew a crew down from Quebec to fly us and the bird home to Halifax where we were over 12 hours late arriving>
Speaking of Net Worth, how does one calculate indexed Federal pensions into Net Worth?
I have four of them including one that is tax free.
Anymouse
Speaking of Net Worth, how does one calculate indexed Federal pensions into Net Worth?
Something like that is cash flow (income statement) rather than a balance sheet item (unless you can sell your stream of future payments to someone for a lump sum).
DB2
Speaking of Net Worth, how does one calculate indexed Federal pensions into Net Worth?
Something like that is cash flow (income statement) rather than a balance sheet item (unless you can sell your stream of future payments to someone for a lump sum).
The Discounted Present Value of the Cash Flow!
The Captain
KISS
I’m guessing you probably have enough 
If you really want to know,you could always figure out what an annuity would cost to replace the income received.
Jk