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Old 01-06-2019, 07:21 PM
 
1,053 posts, read 513,755 times
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Just looked at my SS earnings record for the first time.

What do you think a net worth vs gross wages should be at 57?
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Old 01-06-2019, 07:29 PM
 
Location: Aurora Denveralis
8,590 posts, read 3,019,935 times
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Quote:
Originally Posted by Cabound1 View Post
Just looked at my SS earnings record for the first time.

What do you think a net worth vs gross wages should be at 57?
I can't imagine a more variable question. Between wide variance in cost of living - from no kids, simple life, low COL area, to raising kids, buying the usual amount of RE and cars, higher COL - and things like savings rate and investment returns, you could have a net worth of very little or well over a million.
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Old 01-07-2019, 07:49 AM
 
Location: Wooster, Ohio
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The Millionaire Next Door uses the formula 0.1 * Age * Gross Income

A PAW (Prodigious Accumulator of Wealth) has at least twice that amount.

A UAW (Under Accumulator of Wealth) has half that amount or less.
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Old 01-07-2019, 08:02 AM
 
Location: NJ
24,115 posts, read 30,231,951 times
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Quote:
Originally Posted by mshultz View Post
The Millionaire Next Door uses the formula 0.1 * Age * Gross Income

A PAW (Prodigious Accumulator of Wealth) has at least twice that amount.

A UAW (Under Accumulator of Wealth) has half that amount or less.
this is gross annual income?
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Old 01-07-2019, 08:59 AM
 
Location: Wooster, Ohio
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Quote:
Originally Posted by CaptainNJ View Post
this is gross annual income?
Yes, from all sources except inheritance, according to the book.
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Old 01-07-2019, 09:24 AM
 
Location: The Triad (NC)
28,490 posts, read 62,120,010 times
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Quote:
Originally Posted by Cabound1 View Post
What do you think a net worth vs gross wages should be at 57?
The two (income vs what you've done with it) really have NOTHING to do with each other.
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Old 01-07-2019, 09:40 AM
 
Location: NJ
24,115 posts, read 30,231,951 times
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Quote:
Originally Posted by mshultz View Post
Yes, from all sources except inheritance, according to the book.
ok, i got the feeling that OP is looking at total lifetime income earned. probably not a useful number but i guess interesting to see of everything you earned what wealth you made of it.
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Old 01-07-2019, 10:13 AM
 
1,053 posts, read 513,755 times
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Quote:
Originally Posted by Quietude View Post
I can't imagine a more variable question. Between wide variance in cost of living - from no kids, simple life, low COL area, to raising kids, buying the usual amount of RE and cars, higher COL - and things like savings rate and investment returns, you could have a net worth of very little or well over a million.
That’s why I asked. Curious what financially savvy folks think.
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Old 01-07-2019, 10:15 AM
 
1,053 posts, read 513,755 times
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Originally Posted by MrRational View Post
The two (income vs what you've done with it) really have NOTHING to do with each other.
I don’t know, I made $900 at age 16. I doubt I’d have retired had that continued :-)
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Old 01-07-2019, 10:18 AM
 
Location: Phoenix, AZ
1,809 posts, read 2,084,584 times
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Quote:
Originally Posted by mshultz View Post
The Millionaire Next Door uses the formula 0.1 * Age * Gross Income

A PAW (Prodigious Accumulator of Wealth) has at least twice that amount.

A UAW (Under Accumulator of Wealth) has half that amount or less.
So, according to that I should have $656k in net worth right now?! I'm not even close to that. If I was, I feel like I could almost retire right now. I assume they think all people are just going to keep living the exact same lifestyle they currently do upon retirement? Because I know my spending will go WAY down without a child at home, moving to a much lower COL area (which I intend to do), going down to one car, and living a whole lot more simply. I'm betting that the vast vast majority of people aren't even close to their formula result based on that equation, especially most people under 40.
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