The Average Net Worth By Age (2023)

Today we'll look at a study just released by the Federal Reserve that shows the average and median net worth by age of families in the U.S. The average net worth of all families now tops $1 million!

-------------------------------------------------------------------------------------------------

The Dough Roller Money Podcast is a finance podcast for easy-to-understand advice on managing your money. How to make it, give it, save it, spend it, and invest it in a way that puts you in control of your money and makes it work for you. This fun, relatable and honest podcast shoots straight and helps people understand the big picture as well as the nuances of owning your finances. From retirement planning, best practices for saving, paying off debt, smart investing and so much more. You don’t have to be a financial expert to listen, but you can become one!

Make sure you SUBSCRIBE so you won't miss any of our upcoming episodes!

#networth
#thefed
#2023

DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.

[ScottBruceman]

Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.

[DonaldMark-nese]

The average stock in my portfolio has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this market?

[Greggsberdard]

I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?

[Beatricegove]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.

[TheJackCain-]

Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.

[AminaCasazza]

Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?

[cihant]

Love these videos. The data is very interesting. One small thing though. Your image is obscuring part of the plot.

[Casey-summer]

Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.

[jsilverback]

Hard to read the charts with you picture over it.

[johndinning]

Another interesting way to look at this is using the percentile of net worth dimension. You can really see how the top 10 skews it.

[nocashtoday]

Finally at minute 7:40 you talk talk about the real reason for the rise and fall of the net worth - the housing bubble, the prices of houses are catching up and exceeding what they were before the crush. It is not as a big of drop that happened in other values. I wish you exclude housing from the net worth to see the true picture.

[Nguyenvictory]

I am so happy that I made productive decisions about my finances that changed my life forever. I am a single mother and I live in Spain, I bought my second house in September and I hope to retire next year at 40 if all goes well. thanks to Karen Cosmann for helping me achieve this.

[jonathanjames]

I enjoyed these comparisons, but when you (or the Fed) compare age groups you need to keep in mind that it’s a snapshot in time. Being in the 65 plus group now, and comparing that to when I was in the under 35 group, ignores the fact that I benefited from growth over time and inherited wealth from the older group that (no longer with us) that those in the younger groups have not. That’s apples/oranges, or so it seems to me🤔

[arisgod]

If you look at this exact data minus primary home you will have your answer. Homes jumped tremendously during the pandemic. A lot of the 30-35 year olds that got into a home before benefited greatly. The opposite happened in 2007 when the prices of homes started to crush

[HolySoliDeoGloria]

Note that the charts include assets, which means that the fluctuations in home values probably account for a very large amount of the increases and decreases. Thus, the charts don't explain a lot about people's net worth exclusive of real property (savings less debt). (I haven't read the comments; I imagine that others have already noticed this. The host did allude to this.)

[hourgmtchannel]

Networth includes your home. I live in Illinois and own a paid home worth about 350k. Add mine and my wife's savings, and we are at 2.3m. Now take someone in Los Angeles. The vast majority of their net worth could be their home. This is why I'm not an advocate of including your home in net worth, especially when talking retirement unless you are willing to sell and move into something significantly cheaper.

[grahamlawlor]

You are completely misinterpreting the age cohorts. You speak of the 35-44 cohort as if they are "just now digging out of a 30 year hole". Actually, the people who were in the 35-44 cohort in 1995 are now in the 65-74 chort now and are doing great. To see how a specific set of people have performed over time you need to track them as they move from one cohort to the next over time.

[Calipeixegato]

What was most amazing to me was that people who are in the 35-44 age group today don't have a net worth that is any higher than people who were that age in 1989 (when looking at median values, I'm sure the mean values are much higher now). And the value today includes the impact of the recent run-up in real estate values and the fact that in today's dollars, things generally cost a lot less less today than they did in 1989 (with the exception of real estate). That is not a good sign.

[educatedwanderer]

I was a young adult during the 2008 crash, I started working and saving in 1993, and basically rode the market back up. I was contributing into my work 401k, and during the 13 years after I had many years where I was getting returns above 10%. My 401k went from about 30k in early 2000's to 250k in 2016, then 600k in 2021. It's something like 800k in 2023. I'm hoping to retire in 10 years but the next few years may be slower growth.

[leanmixture]

This data doesn’t mean anything because it’s not adjusted for inflation. If you had 130k in 2007 that is completely different from having 130k in 2023