Latest news with #networth
Yahoo
7 hours ago
- Business
- Yahoo
There Are 6 Tiers Of Wealth For Retirees — Are In The Top 1% Or Just Upper Middle Class?
How much money does it take to retire comfortably? Using the Federal Reserve's 2022 Survey of Consumer Finances, retirees' net worth has been split into six tiers, offering a sharp snapshot of financial health for those aged 65 and up. The Fed doesn't list these tiers outright, but the data—based on percentiles—is rich enough to draw a clear picture. Net worth is calculated by adding up everything someone owns—homes, retirement accounts, investments—and subtracting debts like mortgages or credit cards. This survey is done every three years, and since the last update was in 2022, the insights here will remain the benchmark until new data arrives, most likely in late 2026. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can About one in four retirees falls here, with net worth under $50,000. Many rely primarily on Social Security, including the average $1,900 monthly benefit. There is often little in savings, and emergency needs—like medical bills—can quickly drain limited resources. Next up, retirees with net worth between $50,000 and the median $410,000. Homeowners in this group may be debt-free or carry manageable mortgages. With cautious planning, they often stretch Social Security and modest savings to make ends meet, though luxury remains out of reach. Between the median and the 80th percentile, retirees in this bracket likely hold paid-off homes and healthy investments. They have enough flexibility for travel, health surprises, and occasional extras without jeopardizing their budget. Trending: Maximize saving for your retirement and cut down on taxes: . Here, retirees enjoy real financial comfort. Investments are diversified and managed. Philanthropy, home upgrades, and travel are doable. They sleep better knowing unexpected costs are unlikely to derail their plans. These retirees sit in the 90th to 99th percentile. Their wealth allows for complex financial strategies—multi-generational planning, private wealth advisors, long-term care budgets. They've often built this through long-term investing or real estate gains. At the pinnacle, just 1% of retiree households exceed $13.7 million in net worth. This group enjoys complete financial choice—most continue working by choice, not necessity—and can focus on legacy, impact, or passion projects. Americans often underestimate the challenge. The Northwestern Mutual 2025 Planning & Progress Study found the average person believes they need $1.26 million to retire well. Yet data shows most households age 65 to 74 hold under $410,000. Only about one in ten have saved more than ten times their depends on more than just a number. Are you planning to renovate your home—or downsize? Do you see yourself spending retirement traveling the country, or helping raise grandkids? Will you pay off a mortgage, start a small business, or take on part-time work for fun and flexibility? Your lifestyle matters just as much as your balance sheet. Two retirees with the same net worth might live very different lives depending on how they spend, where they live, and how much support they have. One might be sipping coffee in a paid-off condo while the other is juggling property taxes, adult children, and a second car payment. The six wealth tiers can give a sense of where you stand—but the real question is how you'll use what you have. The number alone won't define your retirement. What you do with it will. Read Next: Can you guess how many retire with a $5,000,000 nest egg? . Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article There Are 6 Tiers Of Wealth For Retirees — Are In The Top 1% Or Just Upper Middle Class? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
8 hours ago
- Business
- Yahoo
There Are 6 Tiers Of Wealth For Retirees — Are In The Top 1% Or Just Upper Middle Class?
How much money does it take to retire comfortably? Using the Federal Reserve's 2022 Survey of Consumer Finances, retirees' net worth has been split into six tiers, offering a sharp snapshot of financial health for those aged 65 and up. The Fed doesn't list these tiers outright, but the data—based on percentiles—is rich enough to draw a clear picture. Net worth is calculated by adding up everything someone owns—homes, retirement accounts, investments—and subtracting debts like mortgages or credit cards. This survey is done every three years, and since the last update was in 2022, the insights here will remain the benchmark until new data arrives, most likely in late 2026. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can About one in four retirees falls here, with net worth under $50,000. Many rely primarily on Social Security, including the average $1,900 monthly benefit. There is often little in savings, and emergency needs—like medical bills—can quickly drain limited resources. Next up, retirees with net worth between $50,000 and the median $410,000. Homeowners in this group may be debt-free or carry manageable mortgages. With cautious planning, they often stretch Social Security and modest savings to make ends meet, though luxury remains out of reach. Between the median and the 80th percentile, retirees in this bracket likely hold paid-off homes and healthy investments. They have enough flexibility for travel, health surprises, and occasional extras without jeopardizing their budget. Trending: Maximize saving for your retirement and cut down on taxes: . Here, retirees enjoy real financial comfort. Investments are diversified and managed. Philanthropy, home upgrades, and travel are doable. They sleep better knowing unexpected costs are unlikely to derail their plans. These retirees sit in the 90th to 99th percentile. Their wealth allows for complex financial strategies—multi-generational planning, private wealth advisors, long-term care budgets. They've often built this through long-term investing or real estate gains. At the pinnacle, just 1% of retiree households exceed $13.7 million in net worth. This group enjoys complete financial choice—most continue working by choice, not necessity—and can focus on legacy, impact, or passion projects. Americans often underestimate the challenge. The Northwestern Mutual 2025 Planning & Progress Study found the average person believes they need $1.26 million to retire well. Yet data shows most households age 65 to 74 hold under $410,000. Only about one in ten have saved more than ten times their depends on more than just a number. Are you planning to renovate your home—or downsize? Do you see yourself spending retirement traveling the country, or helping raise grandkids? Will you pay off a mortgage, start a small business, or take on part-time work for fun and flexibility? Your lifestyle matters just as much as your balance sheet. Two retirees with the same net worth might live very different lives depending on how they spend, where they live, and how much support they have. One might be sipping coffee in a paid-off condo while the other is juggling property taxes, adult children, and a second car payment. The six wealth tiers can give a sense of where you stand—but the real question is how you'll use what you have. The number alone won't define your retirement. What you do with it will. Read Next: Can you guess how many retire with a $5,000,000 nest egg? . Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article There Are 6 Tiers Of Wealth For Retirees — Are In The Top 1% Or Just Upper Middle Class? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
10 hours ago
- Business
- Yahoo
Can You Guess What Single Asset Makes Up 30% Of The Average American's Portfolio? It's Not a 401(k)
When most people imagine the average American's wealth, they picture 401(k)s, mutual funds, maybe a pile of cash stashed in a bank account. But if you dig into the data, it turns out the biggest piece of the pie is something you drive by every day: a house. According to the Federal Reserve's 2022 Survey of Consumer Finances — the most recent data available — primary residences make up 30% of the average American household's total net worth. That's right. The roof over your head often holds more weight in a family's finances than any stock ticker ever could. The report, which surveys thousands of households across income brackets and age groups every three years, gives a unique look into what the typical American portfolio really looks like. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can Here's how the rest of it breaks down: Retirement accounts like 401(k)s and IRAs come next, accounting for 25% of household wealth. It's the kind of savings most people don't touch until they're older, but for many, it's their biggest long-term bet. Public equities and mutual funds make up 15% of net worth. These are the traditional stock market investments — the kind you'd expect to see topping the list. But for most households, it's just a slice of the pie, not the main course. Private business ownership or equity stakes account for 12%, though this is more common among wealthier households and small business owners. It's a high-risk, high-reward category — one that can heavily tilt net worth upward or downward depending on success. Trending: Maximize saving for your retirement and cut down on taxes: . Other real estate, including rental properties and vacation homes, makes up 10%. Not everyone is in the landlord game, but those who are tend to diversify here. Cash and deposits — the checking, savings, and emergency funds — only make up 5% of household wealth on average. It's enough to pay bills, but hardly the driver of long-term financial growth. And finally, "other" assets like vehicles, collectibles, and miscellaneous valuables total just 3%. While they might feel like assets in the garage or attic, they don't move the needle much on paper. So why does this matter? Because the way wealth is held in America isn't just about the number in your retirement account — it's about where your money lives. And for most households, that's still in real estate. It's a reminder that while investing is important, owning a home is still the biggest building block of wealth for everyday Americans. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Can You Guess What Single Asset Makes Up 30% Of The Average American's Portfolio? It's Not a 401(k) originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
11 hours ago
- Business
- Yahoo
Can You Guess What Single Asset Makes Up 30% Of The Average American's Portfolio? It's Not a 401(k)
When most people imagine the average American's wealth, they picture 401(k)s, mutual funds, maybe a pile of cash stashed in a bank account. But if you dig into the data, it turns out the biggest piece of the pie is something you drive by every day: a house. According to the Federal Reserve's 2022 Survey of Consumer Finances — the most recent data available — primary residences make up 30% of the average American household's total net worth. That's right. The roof over your head often holds more weight in a family's finances than any stock ticker ever could. The report, which surveys thousands of households across income brackets and age groups every three years, gives a unique look into what the typical American portfolio really looks like. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can Here's how the rest of it breaks down: Retirement accounts like 401(k)s and IRAs come next, accounting for 25% of household wealth. It's the kind of savings most people don't touch until they're older, but for many, it's their biggest long-term bet. Public equities and mutual funds make up 15% of net worth. These are the traditional stock market investments — the kind you'd expect to see topping the list. But for most households, it's just a slice of the pie, not the main course. Private business ownership or equity stakes account for 12%, though this is more common among wealthier households and small business owners. It's a high-risk, high-reward category — one that can heavily tilt net worth upward or downward depending on success. Trending: Maximize saving for your retirement and cut down on taxes: . Other real estate, including rental properties and vacation homes, makes up 10%. Not everyone is in the landlord game, but those who are tend to diversify here. Cash and deposits — the checking, savings, and emergency funds — only make up 5% of household wealth on average. It's enough to pay bills, but hardly the driver of long-term financial growth. And finally, "other" assets like vehicles, collectibles, and miscellaneous valuables total just 3%. While they might feel like assets in the garage or attic, they don't move the needle much on paper. So why does this matter? Because the way wealth is held in America isn't just about the number in your retirement account — it's about where your money lives. And for most households, that's still in real estate. It's a reminder that while investing is important, owning a home is still the biggest building block of wealth for everyday Americans. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Can You Guess What Single Asset Makes Up 30% Of The Average American's Portfolio? It's Not a 401(k) originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
17 hours ago
- Business
- Forbes
Making Money Matter More: The Power Of A 'Massively Transformative Purpose'
Net worth is easy to measure. But what makes it worthwhile? What justifies the effort, investment, or sacrifice required to pursue financial success? And how is that—financial success—even defined in the first place? And then, once you've reached whatever definition of financial success you've determined, what gives your wealth meaning? (A question worth considering) Redefining Financial Success We've long been taught to measure financial success with numbers: net worth, portfolio returns, retirement dates, income generated, gifts granted, taxes paid and avoided, inheritance left behind. Yet one could check every box—and still feel unfulfilled. In fact, many people go to great lengths to achieve supposed financial success—but at the expense of their time, influence, health, and relationships. This all-too-common phenomenon begs the question: What's it really worth? This nagging question is one that has plagued my firm since its inception, nearly 30 years ago. And it's why we coined our own term—Net Worthwhile®—designed to remind us and our clients that our pursuit is not solely numerical…that a mountain of wealth can be worthless without purpose while bringing meaning to money can empower families, both personally and financially. Behavioral Science Meets Financial Planning Here, we're taking concepts rooted in behavioral science, like Self-Determination Theory (SDT)—which suggests that identifying with a purpose enhances intrinsic motivation, boosting persistence, engagement, and performance when tasks align with personal values—and extrapolating it to wealth management. Others have done the same in other fields. For example, building on Jim Collins' BHAG concept (Big Hairy Audacious Goal), Peter Diamandis and Salim Ismail introduced us to the concept of the Massively Transformative Purpose (MTP) in their ode to entrepreneurs in their book, Exponential Organizations. What's A Massively Transformative Purpose? Hyperbolic by design, a Massively Transformative Purpose for a business is a clear, aspirational statement that articulates an organization's deeply held purpose to create meaningful, large-scale impact. 'It establishes a long-term goal for the company so sweeping and profound that it is always within reach yet always unreachable,' Ismail suggests. 'It inspires employees and customers. And it galvanizes employee morale and retention.' For example, at my company, we review our version of an MTP with the entire firm every quarter: 'We are going to impact the lives of 10,000 families by 2030 because financially healthy families and individuals change the world.' This infuses our collective efforts with a purpose well beyond profit, while providing a standard against which all of our individual initiatives and decisions can be gauged. What's Your Net Worthwhile®? The concept of Net Worthwhile®, therefore, can be used to help those families we impact with a similar plumbline for their financial planning. Net Worthwhile® helps bring money to life (and life to money) in three key ways: At its simplest, your Net Worthwhile® is the completion of this sentence: For the relationally oriented, Net Worthwhile® serves as a family financial mission statement. For the practically minded, it becomes a clear set of marching orders from client to advisor. For the analytical, it provides the standard by which goals and next actions in the plan are evaluated. And for the experimental, it may serve as a catalyst to expand what's typically considered possible in financial planning. For some, Net Worthwhile® serves as a phrase or sentence. For others, a paragraph or bullet points or even pictures. Its effectiveness is judged not by its articulation but by its power to activate and motivate. So, what's yours? What's the Massively Transformative Purpose that gets you up in the morning, that inspires you to push through when you face resistance, that gives you clarity in the midst of confusion, that brings meaning to money? What's your Net Worthwhile®?
