Average Net Worth By Age! (2026 Edition) - Money Guy Show Recap
Podcast: Money Guy Show
Published: 2026-01-09
Duration: 44 min
Summary
In this episode, the hosts dive into what the average net worth looks like by age and emphasize the importance of understanding your net worth for effective wealth building. They also discuss how to assess where your net worth should be based on age and financial goals.
What Happened
The episode kicks off with Brian and Brent excitedly discussing the significance of knowing and tracking net worth, particularly how it relates to one's wealth-building journey. They explain that net worth is calculated by subtracting what you owe from what you own. The hosts break down the components of net worth, starting with assets, which include cash accounts, investment accounts, and real estate, before moving on to liabilities such as consumer debt and mortgages.
As the conversation unfolds, they highlight the disparity between average and median net worth figures, stressing that the median provides a more realistic picture for most individuals. For example, the median net worth for those in their 20s is $6,700, while it rises to $290,000 for those in their 60s. Brian emphasizes that it's crucial to focus not just on total net worth but on investable net worth, which is vital for financial independence. They also challenge common benchmarks provided by firms like Fidelity, suggesting that a more personalized approach is necessary for effective financial planning.
Key Insights
- Net worth is calculated as what you own minus what you owe.
- Median net worth figures provide a clearer picture than average figures.
- Investable net worth is crucial for achieving financial independence.
- Common benchmarks for net worth may not be sufficient for individual financial planning.
Key Questions Answered
What is net worth and how is it calculated?
Net worth is defined simply as what you own minus what you owe. It includes all your assets, such as cash accounts and investments, and subtracts your liabilities like debts and loans. Understanding this calculation is crucial for assessing your financial situation and making informed decisions about your wealth.
What are the average and median net worth figures by age?
The hosts reveal that the median net worth for individuals in their 20s is around $6,700, increasing to $290,000 for those in their 60s. They note that while average figures can be skewed by extremely wealthy individuals, median figures provide a more relatable benchmark for most people.
Why is investable net worth more important than total net worth?
Brian and Brent argue that investable net worth is vital because it represents the assets that can be liquidated or used for income generation. While total net worth includes home equity, it's the investable assets that truly support financial independence and living comfortably in retirement.
How do Fidelity's benchmarks for net worth compare to the Money Guy Show's recommendations?
The hosts critique Fidelity's benchmarks, which suggest having a specific multiple of your annual income in investable assets at various ages. They believe these guidelines might not be comprehensive enough, as they don't account for individual circumstances like pensions or other income sources.
What tools can help in tracking net worth effectively?
Listeners are encouraged to utilize resources from Money Guy, including a free net worth template available on their website and a more advanced net worth tool that provides a dashboard view. These tools help users visualize their financial status and track their progress towards their financial goals.