What are some good benchmarks for networth based on YOE of 2, 5, 10, and 20?
100k, 500k, 2m, 5m
In my opinion you should be saving half your take home. Hand wavy if your are 300k TC and pay a third in tax you should be saving about 100k per year. This includes not only your stock market investments but also the capital you have saved in your home. The S&P 500 returns about 7% after inflation. So you can work out how much you should have saved my year n, as 100k x (1.07^n - 1)/.07 That gives these values: 2yr: 0.207 million 5yr: 1.8 million 10yr: 13.8 million 20yr: 41 million If you think you should be saving a lesser amount per year you can use a different multiplier in the above future value of an annuity formula. In reality most people retire rather than continue working before they get to the big number at 20yr because there is more to life than having a big investment. So I guess most people retire or do something different after 3mil or so.
Them 10 year savings though! Wonder why everyone doesn't reach 13.8 by 10 years ..
This isn’t grounded in reality.
2, $20k (almost all 401k)
10, 5mil
lol