Looking for stats: Average/Median age when $1M networth (household) is attained?

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corp_sharecropper
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Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by corp_sharecropper »

There are plenty of net worth percentile calculators out there but I'm struggling to find this specific permutation of these statistics.

I'm curious to know what the median age (of household) is when a $1M net worth (household nw) is attained.

I don't know if those outliers that are practically born into this category skew things but I'm hoping there's not enough to meaningfully move the needle.

I can find household net worth by age percentile calculators but I'm mostly curious about at which age the $1M line is typically crossed (as opposed to an average NW overly influenced by UHNW or how many households at a specific age have >$1M). Hopefully I've explained that nuance clearly.

I've exhausted my Google skills on this one. Links to sources are appreciated as well as details like "includes primary residence equity" and specifying individual/household net worth values.
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MinnGuyInvesting
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by MinnGuyInvesting »

This is kind of hard to determine.

The truly "average" person doesn't become a millionaire.

Only when taken as a true average offset by the incredibly wealthy does the "average of an age group achieve over a million.
That appears to happen in the 55-64 range as an average.

https://www.cnbc.com/select/average-net-worth-by-age/
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JoMoney
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by JoMoney »

I would point you to the Fed's Survey of Consumer FInances... but the calculators you've found are likely already based on that, and it sounds like that's not what you're looking for.
FWIW, even "networth" is a bit convoluted and different people will calculate different ways. Do retirement accounts count? Do they get offset by some taxable amount? Does a non-marketable pension get a value? Does home equity count toward net worth? What about a car?
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by StormShadow »

Median net worth of US retirees is $201,500. Most people don't become millionaires.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Jack FFR1846 »

I would assume that the medium age is "never".
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by alex_686 »

A little bit of Googling got me this:

https://www.cnbc.com/select/average-net-worth-by-age/

And the answer is - never. 65+ have a medium NW of 266k. Few people crack the 1m mark.

Wealth distribution is highly uneven which is why there is such a big difference between average and medium values. There is also a problem on how that wealth is created. Some earn it, others inherited it. Even those who don't directly inherit it often inherit it. It is much easier for a 14 year old to save 1m over their lifetime if they know they have a funded collage fund or a family bussies that they will inherit. They don't have the drag of paying off student loan and/or access to cheap venture capital.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by MathWizard »

Since the median network for household in each age group is about 250K or less, I would
say that the median age does not exist, since more than half of households do not attain that level of wealth.

Now perhaps you mean, of those households that attain $1 million NW. I would guess that
is likely at an age when the households would be inheriting from one or both parents, since that
would be a quantum jump in NW. So I am going to guess around late 50s to 60s. (Parents in their 70's to 90's)

This is not to say that those households would not have attained $1 million eventually, but if they are
going to get there eventually, then even a relatively modest inheritance can push them over the $1 million mark.

You are not looking at the top NW, but the middle of the group that will eventually reach $1 million.
You should have a cluster in the 50's to 60's, and that is where you would find a median.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by coupleofcents »

"The people in the study became millionaires by consistently saving over time. In fact, they worked, saved and invested for an average of 28 years before hitting the million-dollar mark, and most of them reached that milestone at age 49." according to the Ramsey study of 10,000 millionaires. https://www.daveramsey.com/research/the ... llionaires with about 11 million households in the U.S. with a networth of 1 million or more. https://www.daveramsey.com/blog/how-man ... ires-in-us
Last edited by coupleofcents on Thu Jan 14, 2021 3:33 pm, edited 2 times in total.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by PVW »

Redux of some Fidelity research on 401k millionaires:
https://www.businessinsider.com/how-to- ... gs-2017-11
https://www.nytimes.com/2017/11/24/your ... naire.html

It looks like Fidelity is doing this research yearly, but quick searching only revealed news articles. I couldn't find a Fidelity report.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by 22twain »

StormShadow wrote: Thu Jan 14, 2021 2:23 pm Median net worth of US retirees is $201,500. Most people don't become millionaires.
Yep. According to this page, the 75th percentile of household net worth reaches a maximum of $816K in the age 70-74 group. Therefore, more than 3/4 of US households never reach $1 million.

This thread is an informal survey of forum members from a few months ago. Entering "first million" in the forum search box turns up some similar older threads.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Gardener »

I thought I remember reading that the average age of hitting $1M was 59.

Unfortunately I cant remember exactly where I read it. Possibly in Thomas Stanley's Millionaire next door. But I think it also could have been in one of Brian Tracy's books, which I'd highly recommend.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by MinnGuyInvesting »

Gardener wrote: Thu Jan 14, 2021 3:21 pm I thought I remember reading that the average age of hitting $1M was 59.

Unfortunately I cant remember exactly where I read it. Possibly in Thomas Stanley's Millionaire next door. But I think it also could have been in one of Brian Tracy's books, which I'd highly recommend.
I assume that would be an average of a subset of all people.

Maybe the average age for people who are millionaires. Take a pool of people who are millionaires, and check their average age.
But for the "average" person, they never become one, so it's not a average of all.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by willthrill81 »

corp_sharecropper wrote: Thu Jan 14, 2021 2:13 pm I can find household net worth by age percentile calculators but I'm mostly curious about at which age the $1M line is typically crossed (as opposed to an average NW overly influenced by UHNW or how many households at a specific age have >$1M). Hopefully I've explained that nuance clearly.
I think I understand what you're looking for. I would rephrase the question as "Among those who eventually attain a net worth of at least $1M, what is the median age at which they do so?"

I'm not aware of any readily available data source to answer that question.
MinnGuyInvesting wrote: Thu Jan 14, 2021 3:24 pm
Gardener wrote: Thu Jan 14, 2021 3:21 pm I thought I remember reading that the average age of hitting $1M was 59.

Unfortunately I cant remember exactly where I read it. Possibly in Thomas Stanley's Millionaire next door. But I think it also could have been in one of Brian Tracy's books, which I'd highly recommend.
I assume that would be an average of a subset of all people.

Maybe the average age for people who are millionaires. Take a pool of people who are millionaires, and check their average age.
But for the "average" person, they never become one, so it's not a average of all.
Yes, that's my take as well. The problem with Stanley's study is that it was definitely not a representative sample of American millionaires. They only sampled individuals in areas where they already had strong evidence that there was a high likelihood of many millionaires (i.e., at best, they mostly sampled millionaires who live close to other millionaires).
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Carguy85 »

Reminds me of the stat that only about 1/3 of households living in a home that costs 1 mil or more actually have a net worth of 1 mil or more.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by MinnGuyInvesting »

Here's a net worth site that shows percentiles.


https://dqydj.com/net-worth-percentile- ... ed-states/

This indicates if you have $1,000,000 net worth including home equity, you are 88th percentile.
If you have $2,585,000 or more you are 95 percentile.

If you ignore equity in home, $1,000,000 net worth puts you at 90.5.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by MinnGuyInvesting »

Carguy85 wrote: Thu Jan 14, 2021 3:31 pm Reminds me of the stat that only about 1/3 of households living in a home that costs 1 mil or more actually have a net worth of 1 mil or more.
I'd assume in most of those cases, people with a $1,000,000 house have $200,000 net worth in their equity (down payment).

Very few people buying houses for cash I'd presume.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by huskerfan1414 »

alex_686 wrote: Thu Jan 14, 2021 2:25 pm A little bit of Googling got me this:

https://www.cnbc.com/select/average-net-worth-by-age/

And the answer is - never. 65+ have a medium NW of 266k. Few people crack the 1m mark.

Wealth distribution is highly uneven which is why there is such a big difference between average and medium values. There is also a problem on how that wealth is created. Some earn it, others inherited it. Even those who don't directly inherit it often inherit it. It is much easier for a 14 year old to save 1m over their lifetime if they know they have a funded collage fund or a family bussies that they will inherit. They don't have the drag of paying off student loan and/or access to cheap venture capital.
I had no funded college and will inherit no business or million. I have no access to outside capital, and am paying off student loans.

I expect to become a millionaire, not only in net worth, but by simple portfolio. Will it happen? Maybe not, but I'm on the way... and while many issues can get in the way of that, I am my own worst enemy.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by checkyourmath »

People forget that money doubles every 5 years from the stock market. It isn't that hard! The people that don't owe stocks just miss out. My guess is most millennials will be worth a $1M by their early 40s once things pick up if you are looking for a goal.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by willthrill81 »

checkyourmath wrote: Thu Jan 14, 2021 4:08 pm People forget that money doubles every 5 years from the stock market.
That would require a real rate of return of 14.4% (i.e., rule of 72). U.S. stocks' real return has averaged about 6.8% (i.e., doubling the inflation-adjusted starting capital approximately every 10.6 years), less than half that rate.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Pandemic Bangs »

Just an FYI, this reads like another "how much money do you have?" thread.

If the topic comes up organically, so be it. But as a thread title, I'm always a little dubious.

Proposed thread: "BH with net worth > $5 million: where do you buy your chicken breasts?"
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Helo80 »

Pandemic Bangs wrote: Thu Jan 14, 2021 4:17 pm Proposed thread: "BH with net worth > $5 million: where do you buy your chicken breasts?"
"BH with net worth > $5 million: what frugal thing have you done today?"
"BH with net worth > $5 million: flaunt your high mileage car!"
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by corysold »

MinnGuyInvesting wrote: Thu Jan 14, 2021 3:35 pm Here's a net worth site that shows percentiles.


https://dqydj.com/net-worth-percentile- ... ed-states/

This indicates if you have $1,000,000 net worth including home equity, you are 88th percentile.
If you have $2,585,000 or more you are 95 percentile.

If you ignore equity in home, $1,000,000 net worth puts you at 90.5.
The fact that the term "Net Worth" doesn't have an agreed upon definition makes this that much more difficult. I understand it's Assets - Liabilities, but what goes into each category seems up for debate.

Depending on what I include, we are either in the 30th percentile, the 68th or the 90th.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by corp_sharecropper »

MathWizard wrote: Thu Jan 14, 2021 2:28 pm Since the median network for household in each age group is about 250K or less, I would
say that the median age does not exist, since more than half of households do not attain that level of wealth.

Now perhaps you mean, of those households that attain $1 million NW. I would guess that
is likely at an age when the households would be inheriting from one or both parents, since that
would be a quantum jump in NW. So I am going to guess around late 50s to 60s. (Parents in their 70's to 90's)

This is not to say that those households would not have attained $1 million eventually, but if they are
going to get there eventually, then even a relatively modest inheritance can push them over the $1 million mark.

You are not looking at the top NW, but the middle of the group that will eventually reach $1 million.
You should have a cluster in the 50's to 60's, and that is where you would find a median.
The highlighted part is precisely what I was asking about. I was afraid I didn't articulate that well.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Quirkz »

willthrill81 wrote: Thu Jan 14, 2021 4:09 pm
checkyourmath wrote: Thu Jan 14, 2021 4:08 pm People forget that money doubles every 5 years from the stock market.
That would require a real rate of return of 14.4% (i.e., rule of 72). U.S. stocks' real return has averaged about 6.8% (i.e., doubling the inflation-adjusted starting capital approximately every 10.6 years), less than half that rate.
While I think they're off about the "doubles every five years" conclusion, they're nudging us in the direction of an important point: inflation. That doubles the value of things every 30 years or so, which vaguely approximates a generation. Millennials, on average, will become millionaires much faster than the greatest generation did, and my great grandkids could be making their first million mowing lawns. (Okay, not quite, but eventually a million won't mean anything at all.)

However, I'm also satisfied to note I'm pretty much on track, with my $1m net worth date projected sometime in a year or three before my 50th birthday. My wife is 7 years younger, though, so she's way ahead of the curve. :P
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by corp_sharecropper »

Pandemic Bangs wrote: Thu Jan 14, 2021 4:17 pm Just an FYI, this reads like another "how much money do you have?" thread.

If the topic comes up organically, so be it. But as a thread title, I'm always a little dubious.

Proposed thread: "BH with net worth > $5 million: where do you buy your chicken breasts?"
Wow, ok. I wasn't asking people to share financial anecdotes about their personal lives, I wasn't even trying to survey bogleheads at large. I was simply hoping someone might know the answer/numbers, for US residents, and be pointed to the available data. Obviously, it would be inescapable to privately (in my head) compare my current status w/ the numbers I seek but if this question runs afoul of your smell test then you best avoid searching this forum with something like "is this enough for me to retire?" or "what's your net worth progression".
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by jarjarM »

Bored with my meeting so I decided to look at 2019 Fed survey of consumer finances (where the dqydj.com got the net worth data). Simply look at households with net worth between $900k - $1.1M:

- Total of 135 households
- Average age of 59.7 (median 61)
- Average HHI $150k (median $129k)

Not exactly what you asking but that's what I found for 5min of works :beer

https://www.federalreserve.gov/econres/scfindex.htm
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Pandemic Bangs »

corp_sharecropper wrote: Thu Jan 14, 2021 5:07 pm
Wow, ok. I wasn't asking people to share financial anecdotes about their personal lives, I wasn't even trying to survey bogleheads at large. I was simply hoping someone might know the answer/numbers, for US residents, and be pointed to the available data. Obviously, it would be inescapable to privately (in my head) compare my current status w/ the numbers I seek but if this question runs afoul of your smell test then you best avoid searching this forum with something like "is this enough for me to retire?" or "what's your net worth progression".
You're right. I made up for my under-reacting to some past threads by over-reacting to yours. :oops:

They do still bug me, though.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by alex_686 »

huskerfan1414 wrote: Thu Jan 14, 2021 3:42 pm I had no funded college and will inherit no business or million. I have no access to outside capital, and am paying off student loans.

I expect to become a millionaire, not only in net worth, but by simple portfolio. Will it happen? Maybe not, but I'm on the way... and while many issues can get in the way of that, I am my own worst enemy.
Not commenting on your situation or trying to say that somebody from a lower class family can’t make it.

Rather, if you pick 1m in X years as a finishing line - as the end measurement point, you kind of want everybody to start at the same point. Else the measurement is not going to be very good.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by zaboomafoozarg »

Age 36 or 37 is when the average Boglehead becomes a millionaire.

That was per the Bogleheads 2015 Net Worth Survey.

But that was 5 years ago. Given the stock market and real estate returns of the past 5 years, the average age would probably be low-to-mid 30s if we did another poll now.

Granted, that survey was just Bogleheads, not the general population.
Last edited by zaboomafoozarg on Thu Jan 14, 2021 8:57 pm, edited 3 times in total.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by jarjarM »

zaboomafoozarg wrote: Thu Jan 14, 2021 8:43 pm On the Bogleheads 2015 Net Worth Survey, the average age to reach $1M was 36 or 37.

That was 5 years ago though. Given the returns of the past 5 years, the average age would probably be low-to-mid 30s if we did another poll now.
Bogleheads as a subset of the population is quite a bit more wealthier (the general population won't reach $1M 'til 60).
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Portfolio7 »

zaboomafoozarg wrote: Thu Jan 14, 2021 8:43 pm Age 36 or 37 is when the average Boglehead becomes a millionaire.

That was per the Bogleheads 2015 Net Worth Survey.

But that was 5 years ago. Given the stock market and real estate returns of the past 5 years, the average age would probably be low-to-mid 30s if we did another poll now.

Granted, that survey was just Bogleheads, not the general population.
That's for sure. I've always been a late bloomer, so I was roughly a decade or so later than that. The thing about it, is once you get there, unless you are earning a lot and living on very little, then returns have become a bigger determinent of your gains than saving. You have less control. You end up swimming in the Great Material Continuum, and the current does a lot more for you than your swimming technique.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by dml130 »

checkyourmath wrote: Thu Jan 14, 2021 4:08 pm My guess is most millennials will be worth a $1M by their early 40s once things pick up if you are looking for a goal.
Really, you think most millennials will be worth $1M by their early 40's?? Maybe you should checkyourmath ;)
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by TravelGeek »

dml130 wrote: Thu Jan 14, 2021 9:24 pm
checkyourmath wrote: Thu Jan 14, 2021 4:08 pm My guess is most millennials will be worth a $1M by their early 40s once things pick up if you are looking for a goal.
Really, you think most millennials will be worth $1M by their early 40's?? Maybe you should checkyourmath ;)
Of the millennials in my extended family, I would guess less than 10% will achieve that goal. And about 80% have a college degree.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Sandtrap »

corp_sharecropper wrote: Thu Jan 14, 2021 2:13 pm There are plenty of net worth percentile calculators out there but I'm struggling to find this specific permutation of these statistics.

I'm curious to know what the median age (of household) is when a $1M net worth (household nw) is attained.

I don't know if those outliers that are practically born into this category skew things but I'm hoping there's not enough to meaningfully move the needle.

I can find household net worth by age percentile calculators but I'm mostly curious about at which age the $1M line is typically crossed (as opposed to an average NW overly influenced by UHNW or how many households at a specific age have >$1M). Hopefully I've explained that nuance clearly.

I've exhausted my Google skills on this one. Links to sources are appreciated as well as details like "includes primary residence equity" and specifying individual/household net worth values.
Depends on area and demographics. IE: In a HCOL or UHCOL area, a home is easily worth a million. There should also be a stat that does not include the value of one's home, perhaps.

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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by novemberrain »

The average boglehead becomes a millionaire by age 22. Everyone else is barely scraping by. Lol.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Vihoo »

zaboomafoozarg wrote: Thu Jan 14, 2021 8:43 pm Age 36 or 37 is when the average Boglehead becomes a millionaire.

That was per the Bogleheads 2015 Net Worth Survey.

But that was 5 years ago. Given the stock market and real estate returns of the past 5 years, the average age would probably be low-to-mid 30s if we did another poll now.

Granted, that survey was just Bogleheads, not the general population.
Kind of crazy, but my wife and I fit this exactly.

Due to rapid RE acquisition + appreciation, as well as maxing out our 401ks, and investing aggressively (100% equity allocation, own TSLA stock), we’re on pace to hit our first $1 million between 35-36.
Last edited by Vihoo on Fri Jan 15, 2021 8:24 am, edited 1 time in total.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by phxjcc »

novemberrain wrote: Thu Jan 14, 2021 11:04 pm The average boglehead becomes a millionaire by age 22. Everyone else is barely scraping by. Lol.
22?
Slackers!

I find this conversation troubling.

Does the OP really appreciate that most households don't ever come close.
stoptothink
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by stoptothink »

TravelGeek wrote: Thu Jan 14, 2021 10:02 pm
dml130 wrote: Thu Jan 14, 2021 9:24 pm
checkyourmath wrote: Thu Jan 14, 2021 4:08 pm My guess is most millennials will be worth a $1M by their early 40s once things pick up if you are looking for a goal.
Really, you think most millennials will be worth $1M by their early 40's?? Maybe you should checkyourmath ;)
Of the millennials in my extended family, I would guess less than 10% will achieve that goal. And about 80% have a college degree.
I'm a millenial and personally hit $1M networth in late 30's (wife low-mid-30's). Of our 9 siblings, the likelihood of any of them doing the same is effectively zero; I'd bet there is a significant chance that collectively they won't do it by age 40 (FWIW, 7 of 9 are college grads). Of my close friends, three that I can think of certainly already hit that mark, maybe two more will (out of ~50, similarly ~80% with college degrees). "Most"; someone definitely has a different social circle than I do (Bogleheads is a different world than the one I physically live in).
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by ThatGuy »

stoptothink wrote: Fri Jan 15, 2021 8:12 amOf my close friends, three that I can think of certainly already hit that mark, maybe two more will (out of ~50, similarly ~80% with college degrees)
You have 50 close friends? :shock:
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by CyclingDuo »

coupleofcents wrote: Thu Jan 14, 2021 2:32 pm "The people in the study became millionaires by consistently saving over time. In fact, they worked, saved and invested for an average of 28 years before hitting the million-dollar mark, and most of them reached that milestone at age 49." according to the Ramsey study of 10,000 millionaires. https://www.daveramsey.com/research/the ... llionaires with about 11 million households in the U.S. with a networth of 1 million or more. https://www.daveramsey.com/blog/how-man ... ires-in-us
^^This.^^

I was just about to suggest the White Paper study for Hogan's book as it has a better sampling than Stanley's The Millionaire Next Door book.

Image
(the above graphic is from the study)

The full 71 page study is available here...
https://www.daveramsey.com/store/produc ... naires-pdf

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Last edited by CyclingDuo on Fri Jan 15, 2021 3:10 pm, edited 1 time in total.
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stoptothink
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by stoptothink »

ThatGuy wrote: Fri Jan 15, 2021 8:30 am
stoptothink wrote: Fri Jan 15, 2021 8:12 amOf my close friends, three that I can think of certainly already hit that mark, maybe two more will (out of ~50, similarly ~80% with college degrees)
You have 50 close friends? :shock:
Maybe the words "close friends" wasn't necessarily the best choice, but thinking of family, childhood friends, co-workers, neighbors, and wife's social circle; there are absolutely 50 people in the "millenial" category of which I have a pretty good idea regarding their financial situation. Wife and I are considered the "go-to" for financial advice in our places of employment and among family and friends, so I know way more about the financial situation of many of these individuals (including both sets of parents and all 9 siblings and their spouses) than I wanted to.
Last edited by stoptothink on Fri Jan 15, 2021 10:21 am, edited 1 time in total.
Leesbro63
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by Leesbro63 »

willthrill81 wrote: Thu Jan 14, 2021 4:09 pm
checkyourmath wrote: Thu Jan 14, 2021 4:08 pm People forget that money doubles every 5 years from the stock market.
That would require a real rate of return of 14.4% (i.e., rule of 72). U.S. stocks' real return has averaged about 6.8% (i.e., doubling the inflation-adjusted starting capital approximately every 10.6 years), less than half that rate.
Unless you invested big in 1929 or 1966. Or in Japan in 1989. Or perhaps in a whole bunch of other circumstances.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by CyclingDuo »

Leesbro63 wrote: Fri Jan 15, 2021 10:21 amUnless you invested big in 1929 or 1966. Or in Japan in 1989. Or perhaps in a whole bunch of other circumstances.
What percentage of the world's population invests once, and only once (lump sums it all without ever adding anything else to their original investment) at absolute market peaks?

:beer
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by willthrill81 »

Leesbro63 wrote: Fri Jan 15, 2021 10:21 am
willthrill81 wrote: Thu Jan 14, 2021 4:09 pm
checkyourmath wrote: Thu Jan 14, 2021 4:08 pm People forget that money doubles every 5 years from the stock market.
That would require a real rate of return of 14.4% (i.e., rule of 72). U.S. stocks' real return has averaged about 6.8% (i.e., doubling the inflation-adjusted starting capital approximately every 10.6 years), less than half that rate.
Unless you invested big in 1929 or 1966. Or in Japan in 1989. Or perhaps in a whole bunch of other circumstances.
I was quoting averages. Or are you perhaps just trying to troll? :twisted:
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by am »

StormShadow wrote: Thu Jan 14, 2021 2:23 pm Median net worth of US retirees is $201,500. Most people don't become millionaires.
Most people on bogleheads would tell the median retiree that they can not retire and will be living under the bridge soon. This would also apply for someone with 2 million as well unless they had a pension that covered expenses and healthcare. :D
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by White Coat Investor »

corp_sharecropper wrote: Thu Jan 14, 2021 2:13 pm There are plenty of net worth percentile calculators out there but I'm struggling to find this specific permutation of these statistics.

I'm curious to know what the median age (of household) is when a $1M net worth (household nw) is attained.

I don't know if those outliers that are practically born into this category skew things but I'm hoping there's not enough to meaningfully move the needle.

I can find household net worth by age percentile calculators but I'm mostly curious about at which age the $1M line is typically crossed (as opposed to an average NW overly influenced by UHNW or how many households at a specific age have >$1M). Hopefully I've explained that nuance clearly.

I've exhausted my Google skills on this one. Links to sources are appreciated as well as details like "includes primary residence equity" and specifying individual/household net worth values.
Never. Most households never have a $1M net worth. But of those who do, I'm sure the median is at career end, at least 55+.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by jarjarM »

White Coat Investor wrote: Fri Jan 15, 2021 11:17 am
corp_sharecropper wrote: Thu Jan 14, 2021 2:13 pm There are plenty of net worth percentile calculators out there but I'm struggling to find this specific permutation of these statistics.

I'm curious to know what the median age (of household) is when a $1M net worth (household nw) is attained.

I don't know if those outliers that are practically born into this category skew things but I'm hoping there's not enough to meaningfully move the needle.

I can find household net worth by age percentile calculators but I'm mostly curious about at which age the $1M line is typically crossed (as opposed to an average NW overly influenced by UHNW or how many households at a specific age have >$1M). Hopefully I've explained that nuance clearly.

I've exhausted my Google skills on this one. Links to sources are appreciated as well as details like "includes primary residence equity" and specifying individual/household net worth values.
Never. Most households never have a $1M net worth. But of those who do, I'm sure the median is at career end, at least 55+.
Yeah, that matches with the Fed's survey of consumer finance, where the age of household with ~$1M networth is average around 59.
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by surfstar »

Lets tease it out more - no inheritances allowed, higher education must be self-funded (scholarships are fine, but parents footing the bill is a large monetary gift), no gifted home down-payment, etc, and rerun the numbers...

I'd wager that would increase the median boglehead age a bit


and again, a thread where I have to question what is actionable about this? You get to pat yourself on the back if you're ahead of the curve, or try harder if you're behind it?
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by celia »

Our California paid-off house was worth about a million when we were about 55, but our liquid assets were much less.

Knowing this, how does this help anyone?
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Re: Looking for stats: Average/Median age when $1M networth (household) is attained?

Post by zaboomafoozarg »

surfstar wrote: Fri Jan 15, 2021 1:37 pmand again, a thread where I have to question what is actionable about this? You get to pat yourself on the back if you're ahead of the curve, or try harder if you're behind it?
I think threads like this do serve some purpose.

Seeing them when I joined made me feel financially behind at times, but also compelled me to spend less and earn more.

I cut my spending until it hurt and started a side hustle in order to "keep up". Both of these moves have been beneficial financially.
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