Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Are those of you who are in your 40s or younger including homes that you haven't paid off yet? I assume you need to subtract that from any assets you have, right?

I'm 33 and DH is 34. We have owned our home for about 2 years. Given that we don't have a huge amount of equity in the house yet and that we're paying for preschool, we have negative net worth, despite having well-paying jobs.

I'm confused as to how so many of you in your 30s have so much net worth? Do you not own a home?

Equity in the house is an asset. You owe $900k on a $1M house, you can still sell the house for $1M and get $100k. The mortgage is not a liability.

Exactly. Again, net worth is assets minus liability. In my case for example I just refinanced my mortgage of $750k and the house appraised at $1.55 million. So, not counting, my house contributes $800k to my net worth ($1.55 minus $750)

You lost me at "refinanced my mortgage." Only stupid people do that.

Right. I was stupid to refinance my mortgage to take advantage of a 2.875 percent interest rate. Real stupid.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Are those of you who are in your 40s or younger including homes that you haven't paid off yet? I assume you need to subtract that from any assets you have, right?

I'm 33 and DH is 34. We have owned our home for about 2 years. Given that we don't have a huge amount of equity in the house yet and that we're paying for preschool, we have negative net worth, despite having well-paying jobs.

I'm confused as to how so many of you in your 30s have so much net worth? Do you not own a home?

Equity in the house is an asset. You owe $900k on a $1M house, you can still sell the house for $1M and get $100k. The mortgage is not a liability.

Exactly. Again, net worth is assets minus liability. In my case for example I just refinanced my mortgage of $750k and the house appraised at $1.55 million. So, not counting, my house contributes $800k to my net worth ($1.55 minus $750)

You lost me at "refinanced my mortgage." Only stupid people do that.

41 yo and 40 yo. Net worth 2.5 MM due to retirement, savings/investments, and home equity.

43 and 39, net worth $1.4 million, about 1/3 of which was an inheritance from my grandparents, 1/3 from getting lucky with buying a house EOTP in 2009 that we sold for more than twice our purchase price last year (and invested what was left after putting down 20 percent on a house WOTP), 1/3 retirement and other savings.

If we had $21 million or even the $8 million some of you claim to have, there’s no WAY we’d be working.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How did you all under 40 save so much money? I assume part of the pps here have really awesome paying jobs, but I can't imagine that majority of 35 year olds has jobs that pay over 300K. Was it a trust fund? Parents buying houses? What is it, honestly? If you had absolutely no money coming from parents or grandparents how are you saving so much?
Or is it that only rich are posting here and those that live pay check to pay check are not posting?

New P here, Ages 35,36, NW of $1.3 million, $300 of which is home equity. We were given $200k to help buy a place, but generally speaking, we both have been working since college graduation and saved saved saved. That means we have two incomes being saved for 14 years. We also paid off DH and my student loans in that time. Its been tight but I don't feel deprived.

LOL LOTS of people -- I'd venture to say most people -- in this area have been working since graduation + save save save. Guess what the difference maker is, YOUR PARENTS.

Yep, there is not BUT in that post. 200K is never a BUT! 200K means much lower mortgage, means security, means being able to save. I don't have 200K to give to my kids for a house. Everything that pp wrote is because of the parents! BUT.... let's pretend it's on her own merit!!!!

I mean not counting anything else

Anonymous wrote:

Anonymous wrote:Are those of you who are in your 40s or younger including homes that you haven't paid off yet? I assume you need to subtract that from any assets you have, right?

I'm 33 and DH is 34. We have owned our home for about 2 years. Given that we don't have a huge amount of equity in the house yet and that we're paying for preschool, we have negative net worth, despite having well-paying jobs.

I'm confused as to how so many of you in your 30s have so much net worth? Do you not own a home?

Equity in the house is an asset. You owe $900k on a $1M house, you can still sell the house for $1M and get $100k. The mortgage is not a liability.

Exactly. Again, net worth is assets minus liability. In my case for example I just refinanced my mortgage of $750k and the house appraised at $1.55 million. So, not counting, my house contributes $800k to my net worth ($1.55 minus $750)

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$200

Anonymous wrote:

Anonymous wrote:OP here. I wouldn't count pensions. I'm not counting Social Security.

My breakdown is: retirement accounts 3.4 million, brokerage/checking/savings accounts $1.6 million, home equity $750k.

I quit working 5 years ago. Had worked in BigLaw.

Are others with healthy net worth continuing to work? If so, why?

I am the 42 y/o poster with $21MM net worth. I continue to work for a few reasons. 1) I feel that I should show my kids that adults work. 2) I am a bit afraid of running out of money (crazy I know) 3) while I try to get past #2 every month I work increases my net worth by $100K post taxes or roughly I can comfortably withdraw an extra $333 per month for every month do my life every month that I defer retiring.

You sound like all the crazy people in my former law firm who had millions of dollars yet still felt they couldn’t afford to retire. You’re right: it is insane.

55 and after 2 divorces, a bankruptcy and a failed business venture I am left with a negative net worth. I will be working until I'm 80.

Anonymous wrote:

Anonymous wrote:Are those of you who are in your 40s or younger including homes that you haven't paid off yet? I assume you need to subtract that from any assets you have, right?

I'm 33 and DH is 34. We have owned our home for about 2 years. Given that we don't have a huge amount of equity in the house yet and that we're paying for preschool, we have negative net worth, despite having well-paying jobs.

I'm confused as to how so many of you in your 30s have so much net worth? Do you not own a home?

Equity in the house is an asset. You owe $900k on a $1M house, you can still sell the house for $1M and get $100k. The mortgage is not a liability.

This is true although if you think you will sell your home through a realtor, you should also subtract their fee from your equity when calculating net worth. A 2% commission on a $1M house is $20K, a not-insignificant chunk of that $100K equity.

I'm the pp who is 39, my DH is 40, our net worth is $1.02M. We've never had super high incomes. I think we've just been super frugal. I've resented DH at times, but it helps to look at our net worth - I look at it a lot. DH's salary is $120K. My salary was $150K until earlier this year when I quit to be a SAHP. We do NOT own a home. Neither of us had help from parents (I've actually given money to one of my parents when they needed it). We went to inexpensive colleges, received pell grants for at least part of college, and both worked throughout college. The combination of these things menat that we each graduated college without any debt. DH was smart enough to get a master's degree at a fancy school with a large enough endowment to give him a stipend, so he didn't pay for grad school. We started working in our late 20s (10-11 years ago). While I was paying off my $160K in law school loans we only saved enough to get our max employer match (5% for me, 10% for DH at one time, but now down to 7% I think). We prioritized paying off my school loans and lived in a tiny crappy apartment to do that. Before we got married I shared a two bedroom apartment with three other people to keep the rent low and still be close in. We did pay for nannies for our kids when I was working. Our last international trip was 4 years ago. We often drive for vacation (Maine, Boston, NC, FL), or stay with family if we fly to the west coast. One thing that I think helped, and was completely beyond our control, was that we started our retirement savings in 2008 and 2009, right as the recession started. Stocks have increased a lot since then. I was dumb and scared so put everything in bonds for too long. DH's 401K is $100K larger than mine. Yes he had a higher employer match, and higher starting salary (almost double mine) but I think a lot of the difference was that he invested in stocks right away.

Anonymous wrote:Are those of you who are in your 40s or younger including homes that you haven't paid off yet? I assume you need to subtract that from any assets you have, right?

I'm 33 and DH is 34. We have owned our home for about 2 years. Given that we don't have a huge amount of equity in the house yet and that we're paying for preschool, we have negative net worth, despite having well-paying jobs.

I'm confused as to how so many of you in your 30s have so much net worth? Do you not own a home?

Equity in the house is an asset. You owe $900k on a $1M house, you can still sell the house for $1M and get $100k. The mortgage is not a liability.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:35 and 36 and I guess around $1-1.3 million including the equity in our home. A lot of our assets came from some inheritances I received over the last few years and gifts from my parents. My husband is a surgeon and didn’t finish his residency until he was 31 so he’s only been saving for 5 years. I had a job I loved but the pay was so low that once I became a mom I’ve stayed at home. We are now saving at a very good rate and we have paid off my husband’s medical school loans!

People like you suck sorry not sorry

Same age same net worth and no bs help from Mommy and Daddy

Give me a break. I’m not that poster but I have a significant net worth because my parents died young and never met my kids. So you’re saying in my position you wouldn’t have accepted the inheritance? Suuuuure.

What the hell does your parents meeting your kids have to do with anything?

Not the PP, but clearly it means: "Instead of having a large net worth thanks to having inherited money from my parents, I would rather they had lived longer and met my children".

Are those of you who are in your 40s or younger including homes that you haven't paid off yet? I assume you need to subtract that from any assets you have, right?

I'm 33 and DH is 34. We have owned our home for about 2 years. Given that we don't have a huge amount of equity in the house yet and that we're paying for preschool, we have negative net worth, despite having well-paying jobs.

I'm confused as to how so many of you in your 30s have so much net worth? Do you not own a home?