40 years old - what is your net worth?

[Anonymous]

Anonymous wrote:We are 40 and have 3 young kids. Working with a financial advisor right now. After doing our paperwork I see we have a net worth of just around $1.1 million. This doesn’t count my pension that is around $72,000 a year (right now - could go up with cost of living increase over the next decade or two).

Does this sound about right for our age? We have been aggressively paying off student loans and are just getting out of daycare payments.

It depends entirely on your career trajectory and how far from your personal ceiling you are.

[Anonymous]

Doing great, OP. Keep at it.

[Anonymous]

OP, your pension is probably worth about $1M in today's dollars. If it is guaranteed, you should add it to your balance sheet.

[Anonymous]

Anonymous wrote:OP, your pension is probably worth about $1M in today's dollars. If it is guaranteed, you should add it to your balance sheet.

Op - I believe it’s guaranteed. I work for the state. I can collect my pension in full at 57 years old. So another 17 years. Right now my salary is $150,000 so my pension is based on the highest 5 consecutive years salary. Presumably it will go up with escalation over the next 17 years. Not sure how to calculate how much.

[Anonymous]

I calculated around $700k at the beginning of the year. We didn't have access to employer sponsored 401ks/TSPs for many years, and bought a house late that hasn't appreciated much.

[Anonymous]

At 40, my NW was around $1.5M. At 45, it's $2M, plus a fully paid off condo. If I include the condo, I'm at $2.5M.

At least $500K of that net worth is attributable to gifts I received over many years from parents and grandparents. I started off at age 23 with a fully paid college degree and about $100K in assets, all provided by my family.

My salary increased from $32K at age 23 to $180K now (age 45). Will have a small pension as a Federal employee.

[Anonymous]

My NW is $2.5m. That doesn't include home equity ($3m), 529 plans ($550k), or DH’s accounts (idk, anywhere from $2-10m).

[Anonymous]

Anonymous wrote:My NW is $2.5m. That doesn't include home equity ($3m), 529 plans ($550k), or DH’s accounts (idk, anywhere from $2-10m).

OP - this is what makes me nervous that we are nowhere near where we should be in terms of savings.

[Anonymous]

It’s ok. Just save aggressively. At least you have some money now which can make money for you. Are you counting 2 people in this or just yourself?

[Anonymous]

Anonymous wrote:It’s ok. Just save aggressively. At least you have some money now which can make money for you. Are you counting 2 people in this or just yourself?

OP - this is 2 people. Obviously not counting any inheritance since I have zero idea what that will be like when my parents eventually pass away. Mom has a net worth probably around $2 million and Dad has a net worth of probably $5 million. They are both in their 70s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My NW is $2.5m. That doesn't include home equity ($3m), 529 plans ($550k), or DH’s accounts (idk, anywhere from $2-10m).

OP - this is what makes me nervous that we are nowhere near where we should be in terms of savings.

Only by DCUM standards. Just keep on saving and you'll be fine. Oh, and spend less time on DCUMs.

[Anonymous]

Age 42 and getting divorced. I should have over $800,000 net worth by the time it is over. That is all in an IRA and cash. I no longer own any homes. If I stay at my current job for 20 years, I should have a pension and more in my 401k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s ok. Just save aggressively. At least you have some money now which can make money for you. Are you counting 2 people in this or just yourself?

OP - this is 2 people. Obviously not counting any inheritance since I have zero idea what that will be like when my parents eventually pass away. Mom has a net worth probably around $2 million and Dad has a net worth of probably $5 million. They are both in their 70s.

How much do you guys make? Your ability to build your NW is highly dependent on that..

[Anonymous]

The first million is the hardest!

[Anonymous]

Retired financial advisor here. There’s no point in comparing your net worth to that of other people. What matters is your progress toward your own goals (retirement, supporting your kids, etc.) Everyone will have a different net worth goal based on their retirement lifestyle/income goals.