What is your net worth if you are 55 years of age

[Anonymous]

Late 50's, $8.5m total, including about $2m in home equity (2 houses). Aim is to get to $10m before retirement, which if the market keeps up will be within 4-5 years between additional savings, paying off the last bit of mortgage, and market growth. DH will also get a moderate pension from the Fed Govt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Properties - $67 million
Stocks - $119 million
Art/jewels/collectibles - $185 million
Yachts/cars/helicopter/jet- $72 million
Various cash/treasuries/liquid funds - $63 million

Forgot to mention $3.7 billion in Bitcoin.

Grow up.

[Anonymous]

Anonymous wrote:It is really funny. Compare this thread to the 35-40 year old thread. It seems like the younger people have MORE money than this crowd, which is most likely BS.

I noticed that too, and I don’t think it is B.S. for a few reasons:
1. Younger arrivals to DC tend to work in highly paid careers; often they have relocated from NY;
2. Still on first marriages or had early starter marriage with no kids;
3. Not old enough to have experienced disability that impacts earnings power;
4. Not old enough to have had to take time away from work to care for sick or dying family members;
5. May not have special needs diagnoses for kids or selves (this leads to out of pocket medical costs).

Yes, when I was 35, I thought I’d be rich forever because I had $750k in wealth and a lucrative career. Ha!

At 57 and 59, we still have two kids to get through college. Biggest area where we screwed up on savings. Lost a lot of money due to family health, disability and caretaking responsibilities as well as disability.

Thank God we saved as much as we did in our 20s and 30s. The 40s and 50s have dragged us down financially, but looks like we will still be fine, God willing.
I’ve actually never before calculated the value of the pension / annuity other than to know it will pay us roughly what we make now @ $175k yearly. So I’m shocked we are worth this much. Gotta love DC, you always feel poor! Actually it is our cash flow as a family of four here that is so hard. Had to move kids to private school due to crazy public schools, so there is that too!

Net Worth:$7.2M
Income: $175k
Home equity: $900k
401ks, IRAs: $3M
Value of pension/annuity per calc shared upstream in the thread: $3M
College and emergency savings: $350k

[Anonymous]

Anonymous wrote:

Anonymous wrote:It is really funny. Compare this thread to the 35-40 year old thread. It seems like the younger people have MORE money than this crowd, which is most likely BS.

I noticed that too, and I don’t think it is B.S. for a few reasons:
1. Younger arrivals to DC tend to work in highly paid careers; often they have relocated from NY;
2. Still on first marriages or had early starter marriage with no kids;
3. Not old enough to have experienced disability that impacts earnings power;
4. Not old enough to have had to take time away from work to care for sick or dying family members;
5. May not have special needs diagnoses for kids or selves (this leads to out of pocket medical costs).

Yes, when I was 35, I thought I’d be rich forever because I had $750k in wealth and a lucrative career. Ha!

At 57 and 59, we still have two kids to get through college. Biggest area where we screwed up on savings. Lost a lot of money due to family health, disability and caretaking responsibilities as well as disability.

Thank God we saved as much as we did in our 20s and 30s. The 40s and 50s have dragged us down financially, but looks like we will still be fine, God willing.
I’ve actually never before calculated the value of the pension / annuity other than to know it will pay us roughly what we make now @ $175k yearly. So I’m shocked we are worth this much. Gotta love DC, you always feel poor! Actually it is our cash flow as a family of four here that is so hard. Had to move kids to private school due to crazy public schools, so there is that too!

Net Worth:$7.2M
Income: $175k
Home equity: $900k
401ks, IRAs: $3M
Value of pension/annuity per calc shared upstream in the thread: $3M
College and emergency savings: $350k

Oops...I made a mistake in calculating pension / annuity value. No wonder I did not think we were worth that much!

So Actual Net Worth is @ $5.2M

Pension value: $1.1 M, @ $70k yearly but with addition of other 401ks and IRAs we should hopefully be making @ $175k

[Anonymous]

What is the appropriate tax discount for IRA / 401k equity? I realize the tax liability will vary depending on other income, but is there a rule of thumb to think about those amounts?

[Anonymous]

Anonymous wrote:Late 50's, $8.5m total, including about $2m in home equity (2 houses). Aim is to get to $10m before retirement, which if the market keeps up will be within 4-5 years between additional savings, paying off the last bit of mortgage, and market growth. DH will also get a moderate pension from the Fed Govt.

I'm the earlier poster in my late 50s who retired a half dozen years ago and now has a net worth of $7.3 million -- not quite what you have but in the ballpark. Interesting enough, we also have two houses with close to $2 million in equity between them and have elected to keep the mortgage on one. Out of curiosity, why are you waiting? Why do you feel the need to "get to $10m before retirement," especially if you're thinking it'll take another 4-5 years? By then you'll be in your 60s and will have wasted another 4-5 years when you have to have plenty of money already. Time is more precious than anything else at this point. What expenses do you have not including your mortgage makes you conclude that you need $10 million? We are leaving like kings and queens on less than what you already have . . .

[Anonymous]

Anonymous wrote:A lot of old farts here

Enjoy every moment of your life. Wealth grows but days are numbered.

[Anonymous]

Anonymous wrote:What is the appropriate tax discount for IRA / 401k equity? I realize the tax liability will vary depending on other income, but is there a rule of thumb to think about those amounts?

Typically there isn't much "other income" beyond social security and pensions since most folks who tap their IRAs and 401k are retired. So the "discount" is basically what you'd be paying in taxes on the amount you take out each year at the same rate you'd be paying if you got the same amount in a job. You just need to be smart about how you withdraw it ans when.

[Anonymous]

I totally love this thread OP. But I am surprised the folks have as much as the 35-45 do. So 8 am guessing they are into tech or medial sales and law. Compared to this crowd where I see a lot of pension listed so fed type jobs.

[Anonymous]

Anonymous wrote:You supposed to have a multiplier by age in this case 5.5 million total is goal for a 55 year old.

For most people it is better to multiple how much they need to live on by 25 or even 30. Not ever 55 year old needs or can get to 5.5MM.

[Anonymous]

Anonymous wrote:I totally love this thread OP. But I am surprised the folks have as much as the 35-45 do. So 8 am guessing they are into tech or medial sales and law. Compared to this crowd where I see a lot of pension listed so fed type jobs.

I'm not OP, but I would guess that people are learning a whole lot more about investing younger than the older crowd. And, as you said, you've got a bunch of people here who are in high income jobs.

[Anonymous]

I think we are the "poor" ones on here! LOL

55 and 53
Total Net Worth: $3M
$2M IRAs and 401K
$250K regular savings/investments
$400K college savings
$350K home equity

Plan to retire in 4-5 years

[Anonymous]

Anonymous wrote:A lot of old farts here

If you are lucky, you’ll get to be an old fart, too.

[Anonymous]

Maybe the 35 year old gunners all die from stress.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Late 50's, $8.5m total, including about $2m in home equity (2 houses). Aim is to get to $10m before retirement, which if the market keeps up will be within 4-5 years between additional savings, paying off the last bit of mortgage, and market growth. DH will also get a moderate pension from the Fed Govt.

I'm the earlier poster in my late 50s who retired a half dozen years ago and now has a net worth of $7.3 million -- not quite what you have but in the ballpark. Interesting enough, we also have two houses with close to $2 million in equity between them and have elected to keep the mortgage on one. Out of curiosity, why are you waiting? Why do you feel the need to "get to $10m before retirement," especially if you're thinking it'll take another 4-5 years? By then you'll be in your 60s and will have wasted another 4-5 years when you have to have plenty of money already. Time is more precious than anything else at this point. What expenses do you have not including your mortgage makes you conclude that you need $10 million? We are leaving like kings and queens on less than what you already have . . .

Not the poster you’re responding to but here’s my answer: there is a lot of satisfaction in work and while I don’t want to continue working deep into my 60s, I do worry that I’d get bored/restless if I stopped in my 50s. It’s a delicate balancing— who knows if I’ll get it right.