What should your net worth be by age?

[Clabber Girl]

What should your net worth be by 20s, 30s, 40s, 50s, 60s+?

I dont have much saved in cash saved in my IRA but I have a few rental properties, I plan on keeping them in my retirement days. My net worth has increased considerable since the past 2 years from these rentals.

 

[omar30]

There nothing called "should" in saving.

Focus on investing (digital,real estate) assets.

If there would be a should it's to help people who are in need i would help people who are extremely unlucky and shitty situations they will remember you forever even tell their kids about you i would rather have that than any saving no matter how small. 

[Yarco]

If you've got multiple rental properties you're already ahead of the vast majority.

I think the average total retirement savings that people have in their IRA/401k/whatever by retirement is around $250k. There's some rich people really dragging that average up though, median is like $80k. I don't know how people could possibly ever retire on that.

As really general guidelines... at 30 you should have saved 1x your salary, at 40 3x your salary, at 50 6x your salary.

If your employer offers contribution matching, I'd try to contribute at least enough to max that out every year.

If you have like 10 properties all with their mortgages fully paid off by the time you retire and you're bringing in like $20k/month from rental income, I don't know if you really even need a retirement account though haha. Realistically you're setting yourself up for FIRE (financial independence, retire early) and can probably retire in your 40s or 50s, if you're only going to be drawing like $100k/year or less in retirement. Worst case you retire and sell off a property every few years. Even if you stick with just 3 properties and they're worth $400k each in a decade or two, that's $1.2 mil which is already more than most people will have saved up for retirement.

Minimizing your tax burden should be a pretty big focus as well.

[Thought Art]

At least 10% of all you’ve earned 

This is sort of a complex topic. The more the better. But, also it depends. 
 

I need to research this in more depth. 

Edited October 24, 2022 by Thought Art

[Heart of Space]

Go look at aggregate values and compare where you're at in your state and or country.  That would be the best indicator.

If your a single male, look up income percentile by age.  Savings by age, net worth by age, so on...

Otherwise you're going to get a lot of personal opinions, which can be biased or based off of ignorance.

Edited October 24, 2022 by Heart of Space

[Clabber Girl]

@Yarco - I agree with the rental properties being a substitute for a large IRA or 401k since they have tax advantages and they are less affected by inflation. If savings with a small return is all you have for investments you will get eaten alive by rising inflation. I think its good to have some IRA money stored away but I have been neglecting that and I feel as if I should have more but I get such crazy returns from rental property I dont feel inclined to beef up my IRA savings...

[LordFall]

Depends on what your goals are and what lifestyle you wish to have. My dad has rental properties and tenants and renovations are a pain in the ass so I would never go down that path. Makes it hard to travel for long periods of time too. If you plan on staying in the same place and you're satisfied with your lifestyle then your net worth doesn't really matter as long as you can maintain your expenses indefinitely. If you aim to keep building businesses or live a more extravagant lifestyle then that question matters a bit more.

Net worth itself is a fairly useless measure of lifestyle. Plenty of people worth 7-8 figures are not liquid enough to enjoy a peaceful leisure-filled life.