http://www.fool.com/investing/gener...ge-americans-net-worth-by-ageheres-where.aspx
Where do you stand?
Back in 2011, the U.S. Census Bureau published a report breaking down the median household net worth by age and in quintiles. Because I only think comparison is a valuable tool to get a very broad feel for where you stand, I've excluded the lowest and highest quintiles. What's left is the 30th, 50th, and 70th percentiles.
The plain English explanation is this: the 30th percentile means that if you have exactly this net worth, it is greater than 30% of households your age. The same is true for the 50th and 70th percentiles.
So, broken down by age groups, here's what the median American's net worth looks like:
For many in the older age categories, the value of one's house and property account for a large swath of overall net worth. That's important to note, because -- unless you have a hospital and a farm on your property -- your house can't help pay the food and health bills in retirement. Downsizing might make more sense to free up cash. Clearly, the younger you are, the lower your net worth will be. This is not only due to lower salaries and higher student debt loads of the young, but also a result of them taking on new mortgages.
And if you're in the 50th percentile, and over the age of 65, it's important to know that even if all $171,135 of your net worth is in cash and investments -- that will provide less than $7,000 per year in living expenses. That might work for some, especially after Social Security, but for many others it could be a rude awakening.
Where do you stand?
Back in 2011, the U.S. Census Bureau published a report breaking down the median household net worth by age and in quintiles. Because I only think comparison is a valuable tool to get a very broad feel for where you stand, I've excluded the lowest and highest quintiles. What's left is the 30th, 50th, and 70th percentiles.
The plain English explanation is this: the 30th percentile means that if you have exactly this net worth, it is greater than 30% of households your age. The same is true for the 50th and 70th percentiles.
So, broken down by age groups, here's what the median American's net worth looks like:
For many in the older age categories, the value of one's house and property account for a large swath of overall net worth. That's important to note, because -- unless you have a hospital and a farm on your property -- your house can't help pay the food and health bills in retirement. Downsizing might make more sense to free up cash. Clearly, the younger you are, the lower your net worth will be. This is not only due to lower salaries and higher student debt loads of the young, but also a result of them taking on new mortgages.
And if you're in the 50th percentile, and over the age of 65, it's important to know that even if all $171,135 of your net worth is in cash and investments -- that will provide less than $7,000 per year in living expenses. That might work for some, especially after Social Security, but for many others it could be a rude awakening.
