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How much do you have in assets and how old are you? I never think I have enough but then I see poor people and think I'm rich - so I'm conflicted. I am 30, married, and we make about 85K pre-tax.
I have 25K in my retirement account, about 60K in stocks, and 20K in cash. I have a traditional pension at work so we don't get employer match 401ks which makes it hard for me to gauge my progress because I don't have a "set" amount in that pension until I retire or leave this job. I bought my house in 2008 and the value has down about 25K so I figure I just lost about that much if I try and sell it.
Even with these good assets I feel as if things like a new car are too expensive. I don't understand how people with less than us do it and still save. Even things like taking big trips in the winter seems really expensive.
I doubt too many people feel comfortable providing this information even on an anonymous internet forum.
Multiply your age times your realized pretax annual household income from all sources except inheritances.
Divide by ten.
This, less any inherited wealth, is what your net worth should be.
So your net worth should be 30*85000/10 = $255,000
If your actual net worth is two or three times higher than the calculated net worth then you are doing great.
i think a lot of people already provided these information on this forum.
I say for 30 year old, you are doing fine, especially without consumer debt. Most of us in 30's bought houses at the peak of the housing market, so don't feel about about dropping in housing value. it will recover eventually.
I am 26, have a little under 60k in retirement, 15k in taxable trading account, lil over 40k in cash, and probably 40k equity in my house. But that being said, if I liquidate my 401k I will only get 50% after penalties, and after closing costs I would probably break even on my house. So personally, I would only consider cash and trading account liquid, so 65k
I doubt too many people feel comfortable providing this information even on an anonymous internet forum.
Multiply your age times your realized pretax annual household income from all sources except inheritances.
Divide by ten.
This, less any inherited wealth, is what your net worth should be.
So your net worth should be 30*85000/10 = $255,000
If your actual net worth is two or three times higher than the calculated net worth then you are doing great.
Curious... where did you get this formula? Is this standard thinking? Never heard of it/seen it before (which doesn't mean much....).
Related, if you are a married couple, do you just pick one of your ages and then combine incomes to get your pretax income number and then compute?
Last edited by chicagotodc; 10-25-2012 at 12:30 PM..
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