Average Net Worth by Age 62

in this video i'm going to disclose the average net worth of a 62 year old in the united states coming up next on holy schmidt holy schmidt i've got a question for you are you ahead behind or in the middle of the pack when it comes to net worth well you're about ready to find out in this video i disclose the average net worth of a 62 year old two different ways by the average and by the median or in other words the person who sits exactly in the middle of the pack with an equal number of people above and below them stick around to the end because i'm going to disclose the net worth of the top 1 percent of 62 year olds in this country i will also tell you how the number got to be so large for the people at the top you would think in this day and age that it would be easy to determine what the net worth is of an average 62 year old but it was actually quite hard why the first reason is because the definition of net worth varies the second reason is that there is no easy way to bring this information together the third reason is that in this litigious society people don't really want you to know how much they're really worth this video uses the data from the federal reserve board's consumer finance report from 2019 and so it is quite accurate the federal reserve has done an extensive job of researching this information for people like you and me i've included a link in the description below to the data if you want to read it yourself first let's start off with the simple definition of net worth net worth is defined as all of your assets that you actually can monetize minus all of the liabilities i.e the debt that you have in your life if you subtract the debt from the assets the result is your net worth not included in the definition of net worth are the things that you may have paid a lot of money for but are virtually worthless today or you can't really sell like the collection of wizard of oz plates that you purchased for several hundred dollars 20 years ago if you look them up on ebay today you can get them for almost nothing by the way if you like this video please make sure you give it a thumbs up so that others can find it as well youtube uses the thumbs up in its algorithm to raise the videos in the search results and i want to help as many people as possible now back to the video now let's quickly review the definition of mean and median for those of you that don't know it the mean is the average it's the sum of all of the balances from everybody surveyed divided by the number of people surveyed the median is the net worth of the person exactly in the middle of the list with an equal number of people above him or her and an equal number of people below him or her the mean is skewed up by some very very large balances at the top mega millionaires billionaires perhaps and it's skewed down by some zero balances at the bottom but the mean typically is almost always greater than the median and certainly is in this population of people the median is going to be a lot lower than the mean but probably more representative of the people that you want to benchmark yourself against if you want to benchmark yourself against anyone at all because below the median are going to be a lot of people with zeros and in the case of net worth even negative balances so the mean net worth of a 62 year old in the united states is one million one hundred and eighty eight thousand dollars an interesting note the median for the 62 year old exactly in the middle of the list is 229 000 for the majority of the 62 year olds in the group that's the value of their home and as i said earlier there are quite a few people with nothing or less than nothing negative net worth in the list below that data point so when you think your net worth isn't high enough just remember it could be a lot worse by the way if you're on instagram i recently started an instagram account myself it has bite size data points of social security information it's different than what we have here but i'd love it if you'd follow me the next time you're on instagram finally the net worth of the top one percent of 62 year olds there are only two ways to get into this group you can either inherit it or you can build a business and grow it you won't be able to save your way to the number i'm about ready to give you with rare exception the number is 17.6 million dollars in net worth if you like what you saw and you want to see more of me please don't forget to click subscribe and notifications below that way you get notified the next time i post a video i post about twice a week also check out this video right here if you'd like to know what the average retirement savings is for a 62 year old this is jeff schmidt thanks for watching

Channel: Holy Schmidt!

Views: 892,879

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Id: fPIFU1woous

Length: 5min 3sec (303 seconds)

Published: Mon Jan 18 2021