Average Net Worth of Retirees

[@BennettElizabth]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@JacquelineTheresa]

I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.

[@BennettElizabth]

@@JacquelineTheresa Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. MARGARET MOLLI ALVEY, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.

[@JacquelineTheresa]

@@BennettElizabth Oh please I’d love that. Thanks!

[@BennettElizabth]

@@JacquelineTheresa MARGARET MOLLI ALVEY

[@BennettElizabth]

Lookup with her name on the webpage,

[@shobavakkalagadda9831]

You hit the nail on the head. Comfortable, but not rich. My husband would show an aghast face if someone said that we were rich after looking at our numbers. We still bargain shop at the Dollar Store and Walmart. We always are looking for a good deal on any of our purchases big or small.

[@dstevens518]

Recently learned some friends have fallen on hard times, after inheriting the husband's mom's home and a sizable lump sum a few decades ago. I made a comment that they might want to replace their old beater instead of shelling out for pricey repairs at this point, since they have the money to, and was told that inheritance money is long gone! And here I was thinking it should have been double the size easily by now! It doesn't matter what you make apparently, as you're either the type that wastes whatever you have, or accumulates it throughout your life. I'll take accumulation, please.

[@Old_Sailor85]

That's being smart.

[@matthewtate5581]

Don’t forget Costco 😊

[@livingunashamed4869]

Best finance youtuber hands down. Love your vids.

[@squasherofchickens]

She is good. I’d also recommend Ramit Sethi. His KZbin is channel is “I Will Teach You to be Rich”.

[@511Stallion]

She really is fantastic

[@jayoman4453]

I'm in the 80%, however I find myself shopping at Goodwill for my clothing and drive a 20 year old truck. It's hard to spend after saving all my life.

[@robertfrank886]

I would say that is smart planning. More people need to look at a car or truck as an appliance. Who cares how old it is, so long as it’s reliable. I’m in the same camp- my 2 cars are 20 and 31 years old now and the wife’s SUV is now 12 years old. Being debt free is the way to be.

[@vincentdesalvo1464]

I would say you have a spending problem of not spending. It really isn't healthy being a miser, mentally and physically, but on the bright side, your beneficiaries will love it. Spend wisely and enjoy life.

[@tajdvl-advocate6113]

Exactly.

[@bahadorvalizadeh3014]

The number she reported are way off. Us median household income is around 80k not 50k

[@tajdvl-advocate6113]

@@bahadorvalizadeh3014 And, median income is not close to being the same in NYC, SF, Juneau or Boise, Idaho.

[@miked1542]

The content on this channel is excellent - clear, articulate, fact based, useful. Thanks Erin!

[@ErinTalksMoney]

Thank you so much!

[@well-blazeredman6187]

'Comfortable'? Yep - that's the word. My biggest problem right now is shedding the thrifty habits that got me into that top quintile. But I'm enjoying a retirement full of travel. Good video.

[@EddH64]

Exactly! I keep telling myself that I saved for a good retirement so now is the time to spend the money. I'll be leaving for Greece in a couple of days and once I'm back I'll hook up the camper and head out to the unknown.

[@well-blazeredman6187]

​@EddH64 Love Greece. I go once a year, preferring the islands to the mainland. Enjoy your vacation.

[@jenniferlowery7170]

@@EddH64we did the same thing and enjoy, have a great time.

[@markwilkins1544]

Hi Erin, you look amazing this morning! I love this video! It’s really nice to see where everyone stands with net worth and how each person is doing compared to the average and median. Hope you have a blessed weekend 😊

[@texasroccogaming]

Really enjoying the videos Erin and happy to learn from your content. Also keep the bloopers - they are so fun!

[@hsvkid]

Worried and saved my whole life for retirement. Today I see I’m in the 90+% for net worth. It was still a challenge and took a long time to go from a worrier/saver to a spender. That was the hard nut to crack, spend what you saved your whole life for.

[@rickchandler2570]

I’m having that problem myself. Not easy to do but a good problem to have

[@terrykemp457]

I'm in the same boat. Retired at 55 2 1/2 years ago in the 90+% for net worth. It has been a real challenge to convert from saver to spender even though my net worth keeps going up. However, being retired has been great.

[@Iffy50]

Another great video! I really liked the chart that showed net worth with and without residence included!

[@CormacNJ]

My retirement exceeds my expectations. My cashflow now is greater than when I was working. No debt at all makes all this much calmer.

[@jamestone265]

Feels great doesn’t it!

[@rongendron8705]

I'm retired, with a pension & doing well! My younger brother, 71, still works, but will also get a sizable pension, but I can't talk him into retiring! How can I persuade him that one can live on less, because you spend less?

[@CormacNJ]

@@rongendron8705 I have tracked how much I spend monthly/yearly for 20 years. I knew within 90% how much I needed to bring in (cashflow) monthly/yearly to make retirement work for me. Also have a good sized emergency fund for unforeseen expenses. (as I type this my master bath ceiling is being repaired after yellow jackets built a nest in the ceiling and destroyed a secion of the sheet rock). Good luck with your brother. Tell him to use his time wisely.

[@stanskidmore9093]

Well, I am paying more tax than when we were working...!

[@genxretiree]

Makes sense. Late 40s and retired - net worth is just short of 9m now. Liquid is just over 5m. One house and one commercial building with no mortgages. No debt of any kind. Kids are out of college as well. It's a very freeing place to be.

[@511Stallion]

Congratulations this is such a fantastic achievement and blessing ❤

[@genxretiree]

@@511Stallion Thanks and we certainly consider ourselves blessed. A lot of work in and a lot of reward out.

[@loborocket]

By my calculations, my retirement will far exceed my expectations. I am looking at retiring a bit early (~57) so I can starting enjoying the $ I have saved over my lifetime. I am fairly sure I will never end up spending it all at this point.

[@robertewalt7789]

It can’t hurt to have a financial advisor double check your calculations. If the advisor tries to sell you high commission investments, you have the wrong advisor.

[@TonyCuratolo]

Similar but suggest a larger than reasonable cash/bond position as an “emergency fund” to cover a sequence of returns risk in the equities market.

[@danielgant2214]

Believe it or not, a million dollars doesn’t go as far as you might think. If you have a house that’s paid for, cars with low miles that are paid off, and have a budget that works, you may be ok. I have 3 million, been retired for 9 years, and still spend conservatively. But, I don’t worry about it.

[@NewGuy2024]

We are in the 90% range. In our late 40's. We actually weren't expecting that the more we make, the less our expenses become: --Kids start college and 529 supports them 9 months of the year. --We desire less thus spend less. --We eat less due to appetite and health focus. I can now believe that the growth will outpace our joyful expenses.....crazy!

[@iamkerenlouise]

You are awesome in your content Erin! I just learn so much but also, your presentation is so spot on ! Thank you for all the work you put into your channel! It’s really fantastic!🎉

[@ErinTalksMoney]

Thank you so much!

[@williamkhsu4]

You do a great job mixing in graphics to display info!

[@Markrtsoon]

I watch it twice

[@ErinTalksMoney]

Thank you so much! I have a wonderful editor who works very hard to make these videos look beautiful. And he does such an amazing job!

[@RickRiva]

Hi Erin, during this past year I have been watching so many videos from so many others on retirement and you are AT THE TOP! You are a number person who also has exceptional communication skills explaining financial retirement principles in a very simple way while also using pictorial graphs with supporting data! I have learned so much from you! Well done…You will have MANY followers:)!

[@alanm7186]

Thanks Erin! I always love seeing where other people stand for net worth. It keeps me assured that I will be financially safe with what I have when I retire at the end of this year at 60!😊 Your videos are always my favorite to watch. Your always very informative!

[@ErinTalksMoney]

Thank you so much for watching! I think being on the brink of retirement must feel really exciting, I hope you have a lot of really fun activities planned for your retirement. Enjoy!!!

[@myvalium1]

Great video. I appreciate your point to exclude principal residence value from net worth when analyzing where one stands. I’ve seen so many videos that ignore this element. For obvious reasons, it could lead one to feel good while making poor choices regarding timing of retirement. I’m retired now almost 2 years and glad to report that I feel great, knowing proper planning served me well.

[@ErinTalksMoney]

I’m so glad you have found that you executed your financial plan so well! Congratulations! 😊

[@tkhemjinda]

I'm in that 90% group without home equity. Decades of consistent investing. Now I'm 47 and just went out and brought my self mercedes gls 450...little fun😊

[@ErinTalksMoney]

Enjoy your hard work! Fun is important to 😊

[@chaselesser3191]

@@ErinTalksMoneyNot bad. I just saw a 2023 GLS450 for $65k. With 16k miles. Basically brand new. Basically the price of a 2023 Tahoe. With similar miles. A 2022 was $56k with double the miles.

[@arar983]

Spot on. Both with respect to liquid NW vs. total NW and feelings of being rich vs. simply comfortable or getting by. There was some other article that I read, summing it up best with something like "if you are worth less than $5M, you are not wealthy, you are scared."

[@ErinTalksMoney]

I think there’s a lot of reasons that there’s a lot of truth to that. There’s so many unknowns as you go into retirement and facing what our very graceful aging years. But you always have that thought over your head that what if you end up in assisted-living or need a nursing care facility. Those are incredibly expensive, and can deplete an entire life savings really quickly.

[@shobavakkalagadda9831]

@@ErinTalksMoney This is EXACTLY what has been scaring me since my youth. You hear about how expensive medical care, assisted living, and nursing care can be. I don't want to worry about affordability of those things if we ever have to take on such expenses. I rather live with less expensive items and have the money to take care of medical and dental expenses.

[@shobavakkalagadda9831]

@@ErinTalksMoney In our household, we prioritize our children's education and medical/dental expenses. For these 2 things, the sky is the limit.

[@dsvillalva]

Great video Erin. There is the health factor to consider as well, and would've been nice to summarize what the average cost of health-related expenses retirees face.

[@darrenmatthews1667]

Retired early 3 years ago - "comfortable". Heads up on the spending. Your first year spending will be higher than you expected. After talking to other retirees, they say the same thing. You end up doing maintenance or remodeling that you've been putting off. Getting in those vacations you had no time for when you were working. Doing a few more things that cost money that you never had time for. Good news is after a couple years things settle down and the spending levels out. The reason you feel comfortable and not wealthy is because you understand you could lose those assets. Markets can go down as well as up. Having a job that provides a separate income stream gives a sense of diversification. I'm happy I retired. The job wasn't worth the stress it caused. If my assets drop in value, I still will have enough and I can adapt to the change in circumstances.

[@Markrtsoon]

This is one of the best videos on KZbin for a while. Please watch to the end. Fair and realistic assessment. Very different than those “retire now” nonsense.

[@ErinTalksMoney]

Thank you so much! These are such wonderfully kind words, your comment made my day. 😊

[@dstevens518]

So used to Erin consistently producing polished, informative videos that it took your comment to make me aware this one's even better than usual. For sure, Erin's firmly in the minority of content creators that want to educate, not just tell folks what they want to hear to boost their subscription numbers.

[@paulseidel5819]

I was that kid in grad school collecting soda cans to pay the grocery bill. I am now shocked as a retiree that a working life of good decisions and investing has worked out very well. I was not even in a high paying profession. What great opportunities for those who make good decisions in the U. S.

[@jenniferlowery7170]

It all depends on how much income you have coming in and your expenses. If you still have mortgage, car loans, college loans and credit card payments then it can be a struggle. Debt free makes it so much more relaxing.

[@andregriffin2836]

I truly love your videos and all the goooooood information you give us.

[@theprogressivemichigander6588]

Frankly, the retirement expectations chart looks pretty good for everyone on that chart. 68% of those with less than $50,000 in retirement income said retirement was better than expectations. 2/3 isn't bad.

[@nicolasgirard2808]

Yeah because we have screwed future generations with a massive public debt and unaffordable houses so that we can give retired boomers a better quality of life. Going forward you will need to have a lot more to have a good retirement than current retirees do.

[@jeannettedrown7687]

I always learn a lot from your videos. Can you, please, do a video about annuities (the basics, who might benefit from one, pros, and cons)? Thank you!

[@rarelycares8416]

It may be the right choice for some people who are too afraid of the market to invest...but always remember the person who benefits the most from an annuity is the person who sold it to you.

[@gmp116]

Good videos. Clear, organized, substantive. Tricky part is trying to figure out how to retire early, wait with social security, and bridging that gap. It is a puzzle with no easy answers, even with the ability to keep health insurance

[@frankoh3193]

LOL. Yes. Comfortable, but not rich. Exactly that's how I feel. Thanks for the clip.

[@ErinTalksMoney]

Thanks for watching!

[@bobdrago6965]

We’re in the 80th even without the home included. We are fortunate to have defined pensions and social security. We don’t act rich or even “feel” rich, but admittedly retirement has exceeded our expectations. We are very comfortable, even living in the San Francisco Bay Area. Life is full of surprises so we try not not to take anything for granted. Yes, expenses don’t disappear, and insurance premiums go up every year.

[@roncraft2042]

Living in the Bay Area, you are right … you’re not rich😎

[@stevenziegler2523]

Great video, loved the bloopers too

[@michaelfortney7510]

I like this type of video. You do a superb job. I retired January 1 , 2024. So far it exceeds my expectations. I used to cuss my accountant over how much I paid in social security, but now I draw the maximum amount. And because my wife paid in the minimum to qualify she will get half of mine in about a year. I feel blessed and grateful. Living a life in honest humble gratitude is what makes you rich.

[@Markrtsoon]

This is one of the most fair description of being rich. We have more than 3 million in investments plus a paid off house. We are collecting two pensions and will have high SS incomes when we start collecting. We are still working because of the uncertainty. We definitely say we are comfortable not rich.

[@islandnard]

Why are you still working!😊

[@rayreyes8497]

Seriously, why? 😂

[@gotUpdated]

Working for the health insurance! 😅

[@rahimlee5413]

3 MM retired and still working. You gotta be in the never enough category. Enjoy.

[@av8rgrip]

@@rahimlee54133 million equates to 120k per year in income using the 4% rule. A lot depends on expenses and what they were making while working.

[@kwilliams1958]

Erin, superb synopsis of what many of us experience...And yes, I have not heard anyone I know say 'I wish I hadn't saved so much for my retirement.' Your charts were most instructive in this video. Thanks....

[@ErinTalksMoney]

Thanks for sharing!!

[@RobertDiMatteo-m3u]

Yet, another GREAT video young lady! Thanks.

[@ErinTalksMoney]

Thanks so much for watching!

[@jamestone265]

Nice to be where we are… I’m glad I saved my entire working career. Taking SS later rather earlier was the best thing I ever did.

[@elee14]

Another great and informative video! You do a lot of research on these topics and break it down in terms for people to easily comprehend. Everyone should be paying attention to what you are saying.

[@ErinTalksMoney]

Thank you so much! And thank you for watching!

[@Coover90210]

The blooper reel was charming :-)

[@mikeg0802]

I love your bloopers at the end…..anyone that’s ever made content feels your pain 😂😂. Also, great video and information…..plus you’re very easy on the eyes 👀 👀!!!

[@justfine77777]

Erin spitting more facts! 🤘🏽

[@34dawgsgo]

Best thing I ever did was paying off both mortgages when the company stock went gang busters. NO DEBT in retirement is key. Not super wealthy but live very comfortable as you said.

[@JohnPro38]

Wow! I expected the numbers of the top 10% to be a huge separation…I did not at all expect such a disparity between the 60% and 80% groups…

[@KJFC388]

Erin is always spot on. What a pro.

[@ErinTalksMoney]

Thanks so much!

[@Mr.Eeeeeeeee]

Great video. The tricky part of net worth is how you treat pensions. My wife and I have a pension that starts at 55 for instance, that will cover all our living expenses. It also increases 2% a year so if we live until 90, that is a significant amount putting us in the 90th percentile on the pension alone.

[@GAFB1122]

You could do a Net Present Value calculation based on your expected pension payments coupled with your life expectancy to place an actual value on it. Just know that pensions are becoming extinct, SADLY SO and as Gen X and future generations retire, this country will start to see a negative reckoning, in my opinion.

[@brucecooper7905]

Yes, you do produce the best finance product on KZbin.

[@user-gl9iz1bp1r]

Retirement is all about cash flow. We are retired and have a monthly positive cash flow of $2-3K. Our net worth has seen an increase YTD of $380K. We consider ourselves middle class. I do most of our home repairs (just rebuilt three decks) and still change the oil on our three vehicles. No boats or RVs.

[@sheneedsme]

We own our $1.5 million dollar free and clear and my wife never wants to move but those $20k a year property taxes are a killer which is why I’m still working at age 70. I’ll start collecting social security this year but all of it will go to taxes and insurance.

[@amazedworld2521]

I'm 49 and in a HCOL area with a liquid net worth of $3.5 million (down $3 million from 2021). Married with two teens in private school. Both will probably go to IVY league college that will be $90k each a year min. Even when I was above $6 million, I felt like we are no where near retirement. Household income has been $300k a year and home is over 50% paid off. My target to consider retirement is at $10 million in liquid assets (minus residence), which is basically entry level "wealthy" in our area. But with a 3% withdrawal rate, we can continue our current lifestyle, even with any future major drawdowns in the economy.

[@markkao9954]

I’m 45 with a net of around 6M or so, and I don’t feel like I’ve saved enough to retire. Granted I’ll probably retire around 50 or so

[@GHerna54]

Erin, I enjoy the delivery, content, graphics, and overall message of your videos.

[@ErinTalksMoney]

I appreciate that! Thanks for watching! 😊

[@ld5714]

Good topic and discussion Erin, nice job. Personally, I have never felt including a homes value in the new worth was something I was interested in doing. I figure you can't eat it or spend it, with the exception of Reverse Mortgages or Home Eqity Loans etc. It's nice to know it is out there in the background, but I never wanted to rely on it or include it in my planning. Additionally, I feel there is an element of danger for people who are years away from retirement relying on it too heavily in their planning as it could easily overstate the reality they will experience. That's my 2¢ - I'm retired 13+ years and old school. Retirement is great for me, however I planned for it and was very ready for it. Have a great week Erin. Larry, Centrl Valley, Ca.

[@jessn6974]

A home should most definitely be included in net worth as a retiree can take a reverse mortgage or sell the home and downsize or pay for assisted living.

[@lsmith5678]

Please make a video in the pros and cons of cashing out a pension. I can send you my pension monthly payment vs cash out amount if that helps. I love your videos!

[@jdollar5852]

I don't consider my net worth in my income calculations. We have our home and farm, a rental house, and a farm we own jointly with a friend. All of those add to our net worth, we have zero debt, but the valie of those don't really add to our retirement income every month. We just listed our rental property today. I signed the paperwork yesterday to get it listed. If it sells, I will invest the proceeds and include that in my calculations. If not, we will just keep renting and pocket the $800 a month it provides after expenses. Net worth is cool and all, but so what? I have tools, cars, a boat, tractors, an RV, etc, all of which add to my net worth, but Walmart won't take a tractor in trade for groceries. Our net worth is well over $4million. I justvlooked at my wife and asked her if she felt rich. "I feel comfortable" was her exact answer.

[@dstevens518]

Well said. Net worth tied up in assets that don't provide income don't feel that useful. It's the income level that determines whether you feel well off and comfortable, or something less. Which goes back to Erin's advice in other videos, namely don't buy more house than you need.

[@MichaelToub]

Great Video!

[@ihaveadreamformykids4400]

A house is part of the net worth. You can basically get money out of your mortgage which is called a HELOC or used it for end of life care. Even cars are included in your net worth.

[@bryanwhalen8324]

and rental property

[@nathanyoder4509]

I got a chuckle out of “Oh gosh darn. I saved too much😂” Looking great Erin💪 Hope you have a nice weekend!

[@ErinTalksMoney]

Have a great weekend Nathan! 😊

[@roburb73]

As always - great video, Erin! Without a second thought, our retirement will be what we expect. I say that because we planned a retirement better than how we live now! We can't wait! Sadly, we have to wait until my wife turns 50 in '33! She wants to reach 20 years in Federal Service and her goal is to be a GS-15 before she retires. She's a -13 now, and with her work ethic and desire to do better - she'll get there! We'll have 3 pensions and 2 SS before we need to dip in to our portfolio. I made the joke our kid is going to be rich because I don't know if we will be able to spend what we bring in each month. Sure, maybe a month or two but for 12 straight months? I doubt it! We will have a monthly income (adjusted using a 2.5% inflation) of about $15k a month in 10 years and $19-$21k a month in 15 years. This is before our investable assets and there at 7 figures now. Having grown up in section 8 housing and relying on government assistance, I never thought this life woukd be possible!

[@dstevens518]

Wow, congrats! That's quite the retirement income you're building! I can relate to the part where you say you came from humble beginnings and never thought you'd end up so well off. I can't decide whether the best part of it is the peace of mind or the appreciation of being here (almost, within the decade). I guess it's both.

[@roburb73]

@@dstevens518 I'm with you, it's both! It wasn't easy, but I will do everything I can to enjoy the wealth we've built! We will leave our son a healthy inheritance, but we surely will enjoy the ride! Congrats on your journey - enjoy it!

[@ronwheeler4529]

Excellent approach. Your videos are very informative and cross many levels of users. Thank you

[@ErinTalksMoney]

You're very welcome! Thank you for watching!

[@jglee6721]

I've never seen the net worth percentile table before nor the Parkinson's Law. It also helps that you're easy on the eye. Thanks.

[@CalicoCooperFan]

I feel like i'm on track for a "confortable" retirement. I'm always concerned about things that are putside of my control that could throw me off course - severe illness, layoffs, severe economic long-term downturn, etc...

[@dstevens518]

We have the same concerns and that's what fuels the continued saving/investing, but the concern keeps shrinking as our net worth keeps growing, so hopefully it will be negligible soon...lol.

[@kdjones5149]

My wife and I are 66 & 67 respectively. She's going to start SS in January when she turns 67. I am still working but may retire next year. If I retire next year, I plan to start SS in January 2026. I will be 69. From SS, we will be receiving $40k and $54k respectively. I also have two annuities. We'll start receiving income from one in June 2026 @ $80k per year. The 2nd when my wife turns 70 in 2028. The latter annuity will pay out $34k. Assuming tax rates go back to 2017 levels in 2026, we will be in the 28% tax bracket going forward. We more than likely won't have to take out any of our IRA assets but will need to consider RMDs later on. I say this because one needs to first look at fixed income they will be receiving. It's not simply about total assets.

[@rickdunn3883]

Good video. Folks, pay attention...some of these points can be used to enhance and strengthen your individual plan. I don't do financial plans...but I did stay at a Holliday Inn once. Actually: took CFP courses and completed an MBA...self study for 30+ years, also started a self help group retirement planning group for high net worth DIY individuals. Remember; "Money Doesn't Grow on Fees". "The best thing you can give your kids...is to not become a financial burden for them." "Invest early and often". "Trust but Verify". "nobody will take care of you like you."

[@matthewroth5062]

In planning for retirement, my attitude was to save as if I wasn't getting social security (hi, I'm a millennial). I'd like to believe I can have a comfortable retirement, and things look on track for that right now, but 20+ years is still a ways away, ya? Among my complications: I'm in a rare job with a pension, and I did >5 years at the railroad so I should in theory have RRTA - an SS equivalent. RRTA is actually solvent, lol, but yeah, my benefit wouldn't be much (The tier II is supposed to be the lucrative portion... if you're married). Anyways, thanks for the stats, I like looking at them!

[@ErinTalksMoney]

I have a lot of friends in the railroad industry, here in the north east Keolis and Amtrak are really big employers. And their pension system is absolutely wonderful. I’m a millennial right there with you, and I am saving as if Social Security will not be there.

[@matthewroth5062]

@@ErinTalksMoney My apologies for not mentioning this... My "on track" for retirement comment did not include my pension in my current job. That's just gravy and I lucked into a pretty good job! (FWIW, I'm really close to being a net worth millionaire, or if you add the PV of my pension, then I am one. But that PV calculation is pretty darn nebulous and incorporates a lot of variables!)

[@cashflow68]

I agree with you 100% NOT to include your primary residence as part as your net worth. I live in California where most of the homes are near 1M. Investments to me is much more accurate. Thanks for posting and clarifying this.

[@calminacrisis126]

It’s part of your net worth just shouldn’t be considered retirement assets

[@cashflow68]

@@calminacrisis126 yes it is, but I like to use cash flow investments to measure wealth. My primary residence doesn’t provide cash unless I’m considering selling. Otherwise I like stocks and dividend paying investments.

[@laurijohnson7754]

After all income sources my husband and I have a gross yearly income of 90000. We don’t have anywhere near1.1 million in our IRA but both above average SS incomes and a small pension with around 550000 in our IRA. No debt which helps our money go further. But we still can’t let our guard down😊

[@MountainGoat67]

We are in the 60th %. Our retirement is to retire early at 59 overseas ($2K/mo) with Avg SS benefit and IRA dividend income ETF + adopting "Die with zero" concept. Heaven.

[@Growing-Our-Retirement]

Great video Erin. I would add you can tweak your income upwards from age 65 to 70 just by working a little, start or buy a little micro business, own some rental property, seek a little more than a 4% withdrawal rate. The idea of working your whole life, gaining great skills and then shutting them off completely isn’t wise. Retirees need to stay mentally and physically active. Do some consulting, learn to sell covered calls, don’t be sitting on the couch.

[@wheels636]

I wouldn't describe myself as rich either. I've also got close to $3 million with the house and cabin. But my income streams aren't from my investments alone. I have a rental, full retirement age social security. State disability, two large annuities, small pension, and my wife's social. All together its over $150k a year in income. I figure if I get in trouble I can always sell the cabin or do a reverse mortgage on the house.

[@thomasmoshier3920]

Thanks Erin. Your information is always precise and easily understood. Don’t get me wrong, I love Josh and his channel, but that boy is all over the place!

[@hojo70]

FACT: about two thirds of retirees who use a 4% withdrawal rate end their 30 year retirement with more than double their starting principal. Don't be afraid!

[@kyleolson9636]

That is because it has been over 50 years since the US has had a bad market to retire into. That 4% recommendation is because about 50-70 years ago you would have went broke in a couple decades if you were were using a 5% withdrawal date. Productivity has been dropping for decades and the developed world is aging. People retiring over the next few decades are very unlikely to see the same returns as those who have retired in the past few decades. 4% may even be too aggressive.

[@desiv1170]

Great video! Net worth is an important metric. But, if you don't plan on selling your home in retirement, it's less beneficial to think of your Net Worth as your income. Yes, it is still good in that if your home is paid off, you don't have "rent," so it is helpful. But you still have property taxes, insurance, maintenance, etc... There are options, like a reverse mortgage or selling your home and downsizing. But I'm not a fan of reverse mortgages... Just a gut feeling mostly; I don't know enough about them... And downsizing is more problematic with fewer available less expensive homes out there right now... As for lifestyle creep and that filling up the amount of money we make, I think that is a terrible thing while you are working. It can kill your retirement future... But once you get to retirement that flips; I think spending the amount of money you get in retirement is now your goal... ;-) (Well, almost..)

[@papster33]

Great video! I will echo a few people below. It is often unclear when the statistics are talking per person or per household. I suspect that, at least in some cases, both are being used. While there is not a really great reason to compare ourselves to others financially - lets face it, we all do it! Many households that have been great savers, will still rely heavily on social security. Why? Because even with a 'large' income, between taxes and savings you are not spending nearly that amount. Social security - particularly in dual income households - may make up a significant amount of future spending. I anticipate that SS will be about 1/2 (ish) of what we spend going forward - at least while we are both collecting it. And I do expect to have a 'meets or exceeds' expectations retirement - because I plan for the worst, and hope for something greater than that.

[@ErinTalksMoney]

These numbers were based off household, so I hope that helps to add a little bit of clarity. I appreciate your comments!

[@trackguy4038]

Starting working in the mid 1980s, then 2/3s of mutual funds had an 8.5% comission. Others had a 6.75%, 5.75 A B and C shares, and Fidelity was 3% loads. No target retirement funds or robo advisors. It was difficult setting up a portfolio. Things are so much simplier now for those getting into investing. Can you do a video on how you saw robo advisors and target retirements funds come out and do things simplier for the investors?

[@MeltingRubberZ28]

Let's make it even simpler. 100% VOO, done.

[@vinyl1Earthlink]

In high-income areas, there are tons of wealthy retirees. In this locations, you could make tons of money in the professions, and in your real estate. The guys I hang out with would all be in the official 'wealthy' category, even though they consider themselves middle class. Most of them feel that real wealth starts at $10 million, and that's not them....except for our richest guy, who has to admit that a 9-figure portfolio does put him into the wealthy category. If you only have $3 million or $5 million, you still have to be careful in your spending and watch your budget.

[@paulc1352]

Good video Erin....

[@rda9441]

Great video. I agree to pull out house and look at liquid net income as your focus point. I am in the comfortable range currently and hoping to stay in same range for retirement. I am hoping to retire by 58 or 60 at the latest.

[@JBoy340a]

Well done on pointing out we should exclude you primary home. You have to live somewhere in retirement.

[@tajdvl-advocate6113]

The lower quintile may even live with their kids or are otherwise being directly supported by them. My mom is in this category. Also, the definition of “wealthy” varies a great deal, geographically.

[@mikellock]

Engagement comment to help bring more traffic to Erin’s channel

[@ErinTalksMoney]

Woo-hoo!! 🙌

[@rarelycares8416]

I absolutely saved too much for retirement. But being conservative and a realist meant plan for the worst hope for the best. I probably have about double what I need, but if we have a market crash of 50% in the next few years (just retired this year at 55) I would still feel comfortable. There is no way I am ever going back to work. I can't believe that according to your charts we are probably in the 95% bracket, I feel comfortable, and I feel what we have done should be achievable by 50% of the population.

[@TheBeagle1956]

I have a suggestion for a video with you being a young mom. A video about custodial accounts and 529 college savings plans, including tax implications for parents and children.

[@ErinTalksMoney]

Great suggestion!

[@kevinhoock9742]

Another great video ! Figuring your net worth how do you value a 5 K Pension at age 65 ?

[@bryan8638]

Love the ending outtakes, brings me back to Jackie Chan movies 😂

[@KevinDamerell-c7t]

Great video but missed seeing the puppy on the couch. lol

[@KJFC388]

Very interesting that top percentile had less of their wealth tied up in their house. Makes sense. I need to have a heart to heart talk with my son who bought a McMansion . I want him to understand that will not generate cash flow

[@Very_Concerned-Citizen]

I anticipate spending ~ 40% of my pre retirement income in retirement. While working I live on ~ 38% of my income.

[@Christian_Villanueva]

Sometimes it feels like its impossible to reitee comfortably. Just turned 26 and have a net worth of around $245K. Around $122K in equity from my home, around $20K in work retirement account, and the rest in the stock market. No matter the calculations i run j dont see myself reaching $2Mil which is what i think i would need to retire comfortably by age 50

[@mikeconnell4067]

Keep saving u will get well above 2m

[@dstevens518]

I remember feeling like this when we were younger, but we did it AND we had less than you have at your age, PLUS we didn't have KZbin university to teach us what to do. You'll end up making more than you thought, and your investments will grow exponentially, just like all the graphs show. Key is, you have to keep at it until that exponential growth hits. So don't be discouraged, you're well on your way.

[@jdollar5852]

You'll get well over $2mil with that type of savings. You have 30 years of compounding that will be shocking.

[@Christian_Villanueva]

Thanks y'all, I appreciate the motivation and kind words 🥹

[@amazedworld2521]

If you have $100,000 invested now with an average 7% annual return rate, you can reach $2 mil in 22 years if you invest $2,500 a month.

[@norvinhornberger3510]

What ever your available money was in 2020, most now have about 20% less available for daily living. People’s emergency and or savings money has gotten torched over the last four years. If cost of living doesn’t get better there will be a lot of people in real trouble soon.

[@mrjuvy49]

Wow, didn't know we made the top 20% made our day.

[@ErinTalksMoney]

Nice!

[@kevinmott9046]

these retiree numbers are quite scary. I wonder if by the time we retire in 30-40 years the younger generation will say the same thing about our numbers even if they're higher than these? Inflation is the true enemy.

[@ErinTalksMoney]

It will be really interesting to see what these numbers look like in 20 or 30 years time, inflation is thathuge X Factor

[@Therestof]

My net worth is high but its mostly in my primary home which then costing more tax/insurance/ utility😢

[@MrTimbo17]

It seems the higher ones net worth the lower percentage of that is in your home and other properties outside of liquid assets. But I wonder if there are guidelines or recommendations for higher net worth people to have a minimum percentage of it in home(s) ownership as a hedge against a market collapse or recession? At 64, with 4.8M NW and living in 300K home with no debt, should I buy a more expensive home to be more diversified? It seems there is a housing shortage so perhaps property would retain value even in a downmarket/recession situation

[@amuthita9170]

Great video. Can you provide the source of information for us to do more research?. TIA

[@ErinTalksMoney]

Federal Reserve Survey of Consumer Finances : www.federalreserve.gov/econres/scfindex.htm

[@jarjar45123]

This video (and most) ignores the vast number of retirees who need to pay for assisted living out nursing home which can double or triple triple expenses. Retirement expenses can often drop until they explode higher

[@joewatts9132]

I'm not going to think about that right now. Still, some interesting info, thank you.

[@blongshanks77]

Great video, Erin! You have me looking forward to retirement, even though I still have about 16 years to go! 😄😄

[@ErinTalksMoney]

I hope you have a wonderful retirement when you get there! 😊

[@BobZed]

Of course, nobody ever says, "Oh gosh darn I saved too much money." They say, "Oh gosh darn I have a really nice cushion."

[@arndtbc]

Is this for individuals or couples? when your referring to the segmented groups so plus 100k is that for a couple or individual?

[@ErinTalksMoney]

These were household numbers