I am a 39 year old hardware engineer, PhD from a top 10 school. My annual TC is 650k (before tax of course). My wife is not working at the moment. Current net worth: slightly over 2M which consists of Home equity: 1.2M 401K: 520k Stock: 160k CD: 350k Bank saving account: 50k We are both single child of our parents, and expect over 3M of home asset will pass down us in the future. Feel our NW is low compared to many people of our age. What we can do to get more NW.
To me you’re low for TC of 650k, it’s not your age you should be comparing. I believe it is a mistake to bring home equity into the NW calculation but if you’re comfortable doing that then hit it. How to increase your NW? 1. Make more money. 2. Reduce Major expenses (not talking skipping your $8 morning latte). 3. Save (invest) every spare penny. 4. Create income generating expenses (land leasing, rental stream, intellectual property).
You are already being overpaid. Stop complaining.
Did you get your high TC recently? With your home equity, did you pay it off completely or are you making double payments? Anyway, here's our break down: $1.5M investments ($580K is outside workplace retirement) $570K paid off house (2300 SQ ft, 7000 SQ ft lot) We will add around $209K this year. I assume you save more than us every year. HHI $340K about evenly split. All we do is buy VOO/VTI in all our accounts and wife accumulates a little MSFT from her job. Break down: 85% SPY/VOO/VTI, 5% QQQ, 5% MSFT, 5% BRK.B 45M/38F/5F in MCOL
Your NW is fine, your investment decisions aren't. In particular, why do you have so much money in CDs? And how exactly did you end up with 1.2M home equity? Both of those show lack of financial education. Fingers crossed "stocks" at least means some broad index.
What's wrong with having 1.2M home equity ?
OP paid their mortgage off early, in all likelihood when the rates were still very low.
You’re delusional.
Your competition is with your life style, per year expenditure*250 time, are you headed that direction when you planning to retire? If yes, you are on track, if no, you are behind. I’d your ‘NW 10 and you dream is own a private jet, than you are far behind … if ur net worth is 500k and you want to retire is costarica, you can retire today. I’d you flexing, then good for you. If you are not, hire a financial planner and listen to what I said for free after paying $400.
Another jerk face
Phd is a 5 year missed earnings. Very hard to make that up compared to someone who joined faang after bachelors. If you compare to 33 year olds you are not doing too bad
OP can easily compete against and get a higher TC compared to those 33 year Olds.
650k income and 3M inheritance? I think, somehow, you'll manage 🙄
And worst case... There is always food stamps for them