Can someone explain why median or average net worth matter when the recommended net worth is the most important number?

[Anonymous]

It does not help me at all when I see articles stating median or average net worth. The number that is important is the recommended amount for your age (with a formula on what you might need). Why does anyone care what the median or average is, when it only serves to show where they fall compared to their peers, or serve as a data point for financial programs to help people (since most people in America are far behind)? What am I missing?

[Anonymous]

Why would I care about what some idiot has "recommended" for my age, OP? Not all financial situations and expectations are the same, even if age is the same. I advise you to have more than the recommended amount. Otherwise you'll run into surprises later.

[Anonymous]

Why do you care what the “recommended” net worth for your age is either? Unless they know what your situation is, it is of no usd to you st all.

But to answer your question, people like to feel that tgey are doing better than most.

[Anonymous]

Recommended, hmm.
And what are the criteria used for that recommendation?
Cost of living your area?
Number of dependents?
Are you used to more lavish lifestyle and will you be shocked when you can't maintain that in retirement?
Does it factor in college costs?
What about nursing homes when you get dementia, like most people who live long enough?
Are you really this dumb?

[Anonymous]

Anonymous wrote:Why would I care about what some idiot has "recommended" for my age, OP? Not all financial situations and expectations are the same, even if age is the same. I advise you to have more than the recommended amount. Otherwise you'll run into surprises later.

Why are you so angry?

As mentioned, there are formulas for what you might need. YOU. I didn’t say one formula. If you work with an advisor, they will have a formula for you.

[Anonymous]

Anonymous wrote:Recommended, hmm.
And what are the criteria used for that recommendation?
Cost of living your area?
Number of dependents?
Are you used to more lavish lifestyle and will you be shocked when you can't maintain that in retirement?
Does it factor in college costs?
What about nursing homes when you get dementia, like most people who live long enough?
Are you really this dumb?

I don’t think you can read very well. Formulas do take into account everything above you mentioned, as well as a buffer for unforeseen circumstances. Are you really that dumb?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Recommended, hmm.
And what are the criteria used for that recommendation?
Cost of living your area?
Number of dependents?
Are you used to more lavish lifestyle and will you be shocked when you can't maintain that in retirement?
Does it factor in college costs?
What about nursing homes when you get dementia, like most people who live long enough?
Are you really this dumb?

I don’t think you can read very well. Formulas do take into account everything above you mentioned, as well as a buffer for unforeseen circumstances. Are you really that dumb?

The. Point. Is. That. No. Formula. Can. Take. All. These. Criteria. Into. Account.

But to be honest, it's my bad, OP. I shouldn't expect anyone who creates a thread asking this question to have anything more than a low IQ.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Recommended, hmm.
And what are the criteria used for that recommendation?
Cost of living your area?
Number of dependents?
Are you used to more lavish lifestyle and will you be shocked when you can't maintain that in retirement?
Does it factor in college costs?
What about nursing homes when you get dementia, like most people who live long enough?
Are you really this dumb?

I don’t think you can read very well. Formulas do take into account everything above you mentioned, as well as a buffer for unforeseen circumstances. Are you really that dumb?

The. Point. Is. That. No. Formula. Can. Take. All. These. Criteria. Into. Account.

But to be honest, it's my bad, OP. I shouldn't expect anyone who creates a thread asking this question to have anything more than a low IQ.

I think you need to go outside and take a walk or something.

The point of the post was asking why people continue to report average and median net worth if it doesn’t necessarily provide an individual with information they need for their own planning. I have seen this over and over again when reading about personal finance.

There are plenty of formulas which one uses *as a baseline* for a goal number to know when to ideally retire and how much to withdraw per year. These are obviously highly individual. Most people will add a buffer % to be on the safe side. Not sure who you are but most people want to retire knowing they are likely to be safe financially and enjoy their retirement, as opposed to continually working to stay because “there’s no formula.”

[Anonymous]

OP, your post doesn't make a lot of sense. If you derive value from some "recommended" net worth, well that's super. I'm not sure what you're claiming that other people are doing with average net worth stats, or why it bothers you. Perhaps start with an example?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Recommended, hmm.
And what are the criteria used for that recommendation?
Cost of living your area?
Number of dependents?
Are you used to more lavish lifestyle and will you be shocked when you can't maintain that in retirement?
Does it factor in college costs?
What about nursing homes when you get dementia, like most people who live long enough?
Are you really this dumb?

I don’t think you can read very well. Formulas do take into account everything above you mentioned, as well as a buffer for unforeseen circumstances. Are you really that dumb?

The. Point. Is. That. No. Formula. Can. Take. All. These. Criteria. Into. Account.

But to be honest, it's my bad, OP. I shouldn't expect anyone who creates a thread asking this question to have anything more than a low IQ.

I think you need to go outside and take a walk or something.

The point of the post was asking why people continue to report average and median net worth if it doesn’t necessarily provide an individual with information they need for their own planning. I have seen this over and over again when reading about personal finance.

There are plenty of formulas which one uses *as a baseline* for a goal number to know when to ideally retire and how much to withdraw per year. These are obviously highly individual. Most people will add a buffer % to be on the safe side. Not sure who you are but most people want to retire knowing they are likely to be safe financially and enjoy their retirement, as opposed to continually working to stay because “there’s no formula.”

If your question is about when you can retire and retain a lifestyle of X, perhaps just ask that, rather than another word salad?

[Anonymous]

I think average and median are helpful. If you are above average you will probably be OK, even if it means trimming down your desired lifestyle somewhat.