40 years old - what is your net worth?

[Anonymous]

At 40, we probably had a million or two.

But seriously, the 40s are where the money starts banking. Student loans usually paid off, childcare costs significantly reduced, you probably own a home and are starting to have a lot more equity in it, and income often skyrockets in your 40s as you hit your prime earning years.

At 50, we're now at around $9m net worth.

[Anonymous]

Fidelity rule of thumb is 3x gross Hhi in investable assets at 40. E.g. hhi 300k at 40 you should have 900k in pre and post tax investment accounts (including retirement account). Everyone’s situation is different.

[Anonymous]

Anonymous wrote:

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..

OP - we have steadily increased our salary over the past 10 years. Started at $210,000 HHI and now are at $600,000.

[Anonymous]

Anonymous wrote:

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.

Why would it count your pension? Whenever I hear that I think striver.

When people don’t account for their pension, I think they want people to pity them. OP is right to consider that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think it's low. I took several years off and have worked several years part time and my personal assets are close to 700k. That doesn't include home equity or my spouse's share of assets. We probably are close to 3 million all in combined. Spouse is planning on a military reserve and fed pension as well (since OP mentioned it).

Low by DCUM standards. Very high by normal American standards.

Also, high for DMV just not DCUM. Stay the course, OP.

[Anonymous]

Anonymous wrote:Fidelity rule of thumb is 3x gross Hhi in investable assets at 40. E.g. hhi 300k at 40 you should have 900k in pre and post tax investment accounts (including retirement account). Everyone’s situation is different.

Op - so based on this we are well short. Our HHI just reached $600,000 at 40 years old

[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.

The old saying holds true: ‘you need money to make money’. You will now start to make money on your first 1 mil. But, please keep saving more and investing. Don’t go on a spending spree. Now is the time to stockpile money and invest. You are in great shape. You still have your earning years ahead of you.

[Anonymous]

I am 42 and I have 1.4 million by myself. Partner has the same.

I made six figures only a couple years ago. But!

-I only had $20k student loans because I chose a state school due to money
-I had kids late so had time to build up savings/investments while single
-I only have one kid
-Live in NYC so 3k and PreK are "free" here

If you are making $600k you should def be able to fast track your net worth.

[Anonymous]

A little over 40 is when you start appreciating “compounding interest”.

[Anonymous]

Anonymous wrote:I am 42 and I have 1.4 million by myself. Partner has the same.

I made six figures only a couple years ago. But!

-I only had $20k student loans because I chose a state school due to money
-I had kids late so had time to build up savings/investments while single
-I only have one kid
-Live in NYC so 3k and PreK are "free" here

If you are making $600k you should def be able to fast track your net worth.

I am getting divorced and after I receive my settlement I’m hoping to cross 1 million in a couple years. What are you invested in? I also crossed 6 figures in my salary this year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am 42 and I have 1.4 million by myself. Partner has the same.

I made six figures only a couple years ago. But!

-I only had $20k student loans because I chose a state school due to money
-I had kids late so had time to build up savings/investments while single
-I only have one kid
-Live in NYC so 3k and PreK are "free" here

If you are making $600k you should def be able to fast track your net worth.

I am getting divorced and after I receive my settlement I’m hoping to cross 1 million in a couple years. What are you invested in? I also crossed 6 figures in my salary this year.

Just standard index funds and maybe 10% in individual stocks. Very low on bonds.

[Anonymous]

This is good for you and your wife. You are under no obligations to support your kids beyond college. If you follow the people here they think their kids and grandkids should all have only fully paid college (which I agree with as long as you don't do it at the expense of your own retirement) but also 99% down payment for a home. Teach your kids from the young age to be financially independent and when they graduate college don't give them any impression that an inheritance is waiting for them.

[Anonymous]

OP, you are doing great. my wife and i hit $1 million in 2020 (ages 41 and 42). we are now at $2.5 million. your nw will start snowballing.

[Anonymous]

Op, you’re doing great. Do try to max out the retirement contributions, though. “Catching up” is very hard. On the other hand - although you never want to be counting on it - your inheritance picture should give you some comfort.

We are both 40 as well and are at about $3M including home equity. But both sets of parents are in the “negative” inheritance territory. We already subsidize one set of parents modestly, about $1k/mo, and the other set is probably headed that direction, too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Fidelity rule of thumb is 3x gross Hhi in investable assets at 40. E.g. hhi 300k at 40 you should have 900k in pre and post tax investment accounts (including retirement account). Everyone’s situation is different.

Op - so based on this we are well short. Our HHI just reached $600,000 at 40 years old

But you just had significant increases to income so it's not a good rule of thumb for you. We had the same - our income has nearly doubled in the past four years. It's not practical to hold ourselves to the 3x rule based on our new income yet. Set your goals based on your savings objectives for retirement, etc. and then figure out how you get there whether or not you're "on track" at this moment.