Author Topic: What is your net worth to lifetime earnings  (Read 1822 times)

BoonDogle

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What is your net worth to lifetime earnings
« on: November 02, 2018, 01:47:54 PM »
This is a fun exercise if you have never done it.  I had to do some estimating on my earnings in my younger years as I don't have any good records.  However, it is such a small amount of the total it doesn't make much difference.  So here is the computation:

Net worth / Lifetime earnings (accumulated gross earnings less FICA and income taxes)

My information - I am married with 4 kids, wife does not and has not worked much during our marriage.

Age 25 - 0%
Age 30 - 19%
Age 35 - 31%
Age 40 - 47%
Age 45 - 60%

So I guess this means I still own 60 cents of every dollar I have earned.  I expect many of you extreme frugal types may be over 100%.  If you don't compute it exactly like me go ahead and post.  It's just for fun.  Please include your age for reference.
« Last Edit: November 02, 2018, 02:54:26 PM by BoonDogle »

BeardedMustache

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Re: What is your net worth to lifetime earnings
« Reply #1 on: November 02, 2018, 02:38:30 PM »
For fun my ass, I'm out to win!

Age 36 - 55%

For sources, my SSA account shows lifetime earnings as well as FICA paid.

BoonDogle

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Re: What is your net worth to lifetime earnings
« Reply #2 on: November 02, 2018, 02:51:44 PM »
For fun my ass, I'm out to win!

Age 36 - 55%

For sources, my SSA account shows lifetime earnings as well as FICA paid.

LOL.  You are definitely in the lead for your age - at least for now.  Great job!

YttriumNitrate

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Re: What is your net worth to lifetime earnings
« Reply #3 on: November 03, 2018, 10:12:36 AM »
I'd have to check, but I'm guessing it's pretty close to 100% in my late 30s. I had the huge advantage of A) having generous parents who paid for my schooling, B) starting my first real job shortly before the market crashed in 2008, and C) developing good saving habits while in low paying grad school.

Badass by 41

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Re: What is your net worth to lifetime earnings
« Reply #4 on: November 03, 2018, 12:24:00 PM »
Fun!

Age 25 - 0%
Age 30 - 17%
Age 35 - 36%
Age 41 - 94%

We've made up a lot of ground over the last 6 years after finding MMM. :-)

2Birds1Stone

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Re: What is your net worth to lifetime earnings
« Reply #5 on: November 03, 2018, 12:37:15 PM »
Too lazy to look up how much I paid in taxes/fica, but I'm at 60% of gross earnings.

myemail1045

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Re: What is your net worth to lifetime earnings
« Reply #6 on: November 03, 2018, 02:44:23 PM »
58% at age 31.

JAYSLOL

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Re: What is your net worth to lifetime earnings
« Reply #7 on: November 03, 2018, 07:12:14 PM »
I'm early 30s and at 27%, which is actually better than I expected

Zikoris

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Re: What is your net worth to lifetime earnings
« Reply #8 on: November 03, 2018, 08:31:00 PM »
I'm 32 and almost exactly 50%. So much fun data when you log into your government tax file. For example, my lowest earning year to date was $14,436, and my highest $44,250. I've actually only cleared $40,000 three years of my life so far, and they have not been sequential. Neato.

MissNancyPryor

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Re: What is your net worth to lifetime earnings
« Reply #9 on: November 03, 2018, 09:05:23 PM »
Holy shit I didn't consider this but am glad I did the math. 

From actual SSA statement earnings and tracked net worth (me only, doesn't include the x husband's income or net worth over those decades):

Age 35 - 25%

Age 40 - 42%

Age 45 - 67%

Age 49 - 94% 

I should vault over 100% by the time I retire next year given that my savings rate is something like 76% now. 

Thanks for the thread!  Math is fun. 

ETA:  at the highest net worth before the October slump it was 106%.   WOW! 
« Last Edit: November 03, 2018, 09:12:45 PM by MissNancyPryor »

2Birds1Stone

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Re: What is your net worth to lifetime earnings
« Reply #10 on: November 04, 2018, 06:02:37 AM »
What's the easiest way to get a record of lifetime taxes paid?

Zikoris

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Re: What is your net worth to lifetime earnings
« Reply #11 on: November 04, 2018, 10:07:23 AM »
What's the easiest way to get a record of lifetime taxes paid?

From Social Security if you'e American, CRA if you're Canadian.

itchyfeet

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Re: What is your net worth to lifetime earnings
« Reply #12 on: November 04, 2018, 10:14:17 AM »
Around 60% of gross earning at age 46, and rising quickly now...., but firing soon.

I started around 30% throughout my 20s and early 30s before it started to climb with increasing speed through my late 30s and 40s.
« Last Edit: November 09, 2018, 06:30:30 AM by itchyfeet »

markbike528CBX

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Re: What is your net worth to lifetime earnings
« Reply #13 on: November 04, 2018, 10:27:06 AM »
101%  age 54  FIRED 

This includes gross wages and bonuses, I don't have the taxes information available.
Does not include house equity.

2Birds1Stone

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Re: What is your net worth to lifetime earnings
« Reply #14 on: November 04, 2018, 10:38:26 AM »
What's the easiest way to get a record of lifetime taxes paid?

From Social Security if you'e American, CRA if you're Canadian.

I couldn't find it, only showed my lifetime SS contributions and Medicare contributions + earnings history.

I went back through my tax returns all the way to 2010 and did it manually.

Gross NW Ratio = 56% of lifetime earnings
Net NW Ratio = 78% of lifetime earnings

And just for fun, calculating my lifetime Fed/State Tax + SS + Medicare contributions = $204,600 or roughly 27.5% of lifetime earnings.

Tass

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Re: What is your net worth to lifetime earnings
« Reply #15 on: November 04, 2018, 11:11:51 AM »
I've got 22% at age 25, counting from age 22 when I started receiving my grad school stipend. (So, discounting the few thousand I made part-time in college, which mostly went toward tuition.)

Projecting around 32% by the time I hit 5 years in grad school, age 27.

Money Badger

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Re: What is your net worth to lifetime earnings
« Reply #16 on: November 04, 2018, 06:31:41 PM »
Did the interesting math and thinking of changing my name to "Fiddy Cent"...

Age:50
NW ratio to Total SSN Earnings:  50%
Saving+Earning Annual Rate since MMM: ~50%  (but this is improving w/our MMM habits and as kids start to fledge next year)

APowers

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Re: What is your net worth to lifetime earnings
« Reply #17 on: November 04, 2018, 06:44:13 PM »
Based on my rough calculations, I'm at or over 100%. Not FI yet, but should be there in the next 5 years at most. Age 29 fwiw.

YttriumNitrate

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Re: What is your net worth to lifetime earnings
« Reply #18 on: November 05, 2018, 12:01:06 PM »
I'd have to check, but I'm guessing it's pretty close to 100% in my late 30s. I had the huge advantage of A) having generous parents who paid for my schooling, B) starting my first real job shortly before the market crashed in 2008, and C) developing good saving habits while in low paying grad school.
Finally got around to running the numbers, and had to guess on federal and state taxes so I assumed 3.5% state and 12% federal. Using those numbers, I'm at 99% of net lifetime earnings just counting financial accounts (401k, taxable, 529 plans, etc.). Adding in non-primary residence real estate puts me up to 111% and including primary residence equity gets me up to 120% of net (or 93% of gross).

PoutineLover

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Re: What is your net worth to lifetime earnings
« Reply #19 on: November 05, 2018, 12:07:12 PM »
I'm around 18% at age 27 but the lifetime earnings is an estimate.

winkleweizen

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Re: What is your net worth to lifetime earnings
« Reply #20 on: November 05, 2018, 01:07:40 PM »
Hmmm, is there an easy way to do this if you and your spouse NW is now combined?!

BoonDogle

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Re: What is your net worth to lifetime earnings
« Reply #21 on: November 05, 2018, 06:28:15 PM »
Wow, very impressive numbers.  I have some catching up to do.  If I get enough information, I'll post some averages by age group for comparison purposes.

BoonDogle

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Re: What is your net worth to lifetime earnings
« Reply #22 on: November 06, 2018, 09:01:16 PM »
Definitely not a very large sample size but averages so far are as follows:

       -25 - 7.3%
26 to 30 - 38.5%
31 to 35 - 43.6%
36 to 40 - 66.0%
41 to 45 - 73.7%
46 to 50 - 68.0%
 over 50 - 101%

If we have any more participation, I'll update them again.

ducky19

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Re: What is your net worth to lifetime earnings
« Reply #23 on: November 07, 2018, 10:46:57 AM »
I only have net worth data going back a few years, but using my current net worth and SS data, I'm at 38% at 43 years old. That would be a lot higher if I'd found MMM sooner - as it is, I've only been a follower for the past 5 years or so. Luckily also my highest earning years, so this percentage should continue to grow pretty quickly I hope!

diapasoun

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Re: What is your net worth to lifetime earnings
« Reply #24 on: November 07, 2018, 11:59:55 AM »
Averages are definitely going to be skewed here -- I suspect that most people on these boards who don't have great ratios here are not going to post.

I'm at 9% at age 32.

I'm not proud of it, but I'm not not proud of it, either. That rate represents a mix of not having had certain advantages and also not having been as smart as I could have been. I've been working since I was 15, and have been financially independent since I was 18; I paid my way through college and grad school on a very small budget without family assistance. I spent about three years after finishing grad school being unfocused and not realizing that maintaining my grad school lifestyle could have significant benefits for me (had small savings and started a 401k once I had access but just wasn't focused), and in 2017 decided that I needed to really start shaping up.

Putting yourself through school's not a joke, and the opportunity cost of grad school is real; I didn't make more than $25k in a year until 2015, and I had to take out loans for my undergrad because my family couldn't help. All the same, that number would be more like 14-20% if I had stayed on my shoestring grad school budget after finishing up instead of the lifestyle inflation I practiced.

Tass

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Re: What is your net worth to lifetime earnings
« Reply #25 on: November 07, 2018, 12:11:05 PM »
Averages are definitely going to be skewed here -- I suspect that most people on these boards who don't have great ratios here are not going to post.

The ratio also disguises some information. I blew most of my first year of earnings, but I still have a great ratio for my age because those earnings weren't very much. (See again: grad school budget.) Someone who made $100k out of school and saved the same percentage as I did will have more savings but a worse ratio. And I guess that's the point of the ratio - to control for income disparities - but in some ways it's not really asking how much you saved, but how late you started.

JLee

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Re: What is your net worth to lifetime earnings
« Reply #26 on: November 07, 2018, 12:13:58 PM »
39.44% with my most recent net worth calculations (post-dip).  43% the month before (34yo).

Mississippi Mudstache

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Re: What is your net worth to lifetime earnings
« Reply #27 on: November 07, 2018, 12:54:19 PM »
Currently I'm at 33% of my lifetime FICA earnings. Much better than 5 years ago, when I was at 10% of FICA earnings.

diapasoun

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Re: What is your net worth to lifetime earnings
« Reply #28 on: November 07, 2018, 01:01:07 PM »
Averages are definitely going to be skewed here -- I suspect that most people on these boards who don't have great ratios here are not going to post.

The ratio also disguises some information. I blew most of my first year of earnings, but I still have a great ratio for my age because those earnings weren't very much. (See again: grad school budget.) Someone who made $100k out of school and saved the same percentage as I did will have more savings but a worse ratio. And I guess that's the point of the ratio - to control for income disparities - but in some ways it's not really asking how much you saved, but how late you started.

I think that's the cool thing about the ratio -- it reflects a lifetime of behavior and opportunity both! I actually really like the idea of using that ratio as a thing to measure by as I move forwards: How can I improve my financial situation long-term? What does it take to keep increasing how much I keep of what I've earned?

Mostly I think there's a lot of folks who are going to be more like me on these boards (starting after their 20s) who probably wouldn't post in this thread because it's kinda embarrassing to be like "yeah, I was a dumdum for a while." And that makes sense, because my 9% is totally not badass, and we are in the badassity section. ;) On the other hand, it's nice to get a fuller picture of this community, too.

Currently I'm at 33% of my lifetime FICA earnings. Much better than 5 years ago, when I was at 10% of FICA earnings.

Hell yeah! You are my goal. ;)

bcbaseballman

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Re: What is your net worth to lifetime earnings
« Reply #29 on: November 07, 2018, 01:37:43 PM »
Well I am really pretty new to the MMM community and was not very conscious about any of this really before joining.  I was always fairly smart with not spending more that I had but I never really saved either.

The start of this year I was a -3% but I am on schedule to finish this year at +5%. I am 29

@diapasoun I am a little embarrassed at where I am currently but I figure everyone has to start somewhere and I am starting before the majority of the country!
« Last Edit: November 07, 2018, 01:40:45 PM by bcbaseballman »

markbike528CBX

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Re: What is your net worth to lifetime earnings
« Reply #30 on: November 07, 2018, 01:48:27 PM »
Well I am really pretty new to the MMM community and was not very conscious about any of this really before joining.  I was always fairly smart with not spending more that I had but I never really saved either.

The start of this year I was a -3% but I am on schedule to finish this year at +5%. I am 29

@diapasoun I am a little embarrassed at where I am currently but I figure everyone has to start somewhere and I am starting before the majority of the country!

AND you've started in the first place, which puts you way ahead of the majority.

SnackDog

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Re: What is your net worth to lifetime earnings
« Reply #31 on: November 07, 2018, 03:21:31 PM »
It should be versus years worked not age because some people start their career at age 18 and others drag along in college and grad school until age 30 or more. At age 40, one has worked 22 years and the other 10. Apples and oranges. 

I'm 22 years in and about 225% due to high savings rate.  Over time appreciation of stocks and real estate will overwhelm income assuming income doesn't grow too fast.  The key factors, of course, are savings rate and appreciation rate. With 50% annual savings, 7% compounded annual returns, and 5% annual raises, you can reach 100% in about 22 years.  Dial up savings or investment growth rate, and it will happen sooner.

BoonDogle

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Re: What is your net worth to lifetime earnings
« Reply #32 on: November 08, 2018, 07:50:03 AM »
Averages are definitely going to be skewed here -- I suspect that most people on these boards who don't have great ratios here are not going to post.

I'm at 9% at age 32.

I'm not proud of it, but I'm not not proud of it, either. That rate represents a mix of not having had certain advantages and also not having been as smart as I could have been. I've been working since I was 15, and have been financially independent since I was 18; I paid my way through college and grad school on a very small budget without family assistance. I spent about three years after finishing grad school being unfocused and not realizing that maintaining my grad school lifestyle could have significant benefits for me (had small savings and started a 401k once I had access but just wasn't focused), and in 2017 decided that I needed to really start shaping up.

Putting yourself through school's not a joke, and the opportunity cost of grad school is real; I didn't make more than $25k in a year until 2015, and I had to take out loans for my undergrad because my family couldn't help. All the same, that number would be more like 14-20% if I had stayed on my shoestring grad school budget after finishing up instead of the lifestyle inflation I practiced.

I have thought about the sampling bias in posting the question and you are exactly right.  I expect the numbers will be skewed higher than the true average of the people on this forum.  Glad you posted and shared your story.  I would guess your numbers will follow a Northward trend going forward.

It should be versus years worked not age because some people start their career at age 18 and others drag along in college and grad school until age 30 or more. At age 40, one has worked 22 years and the other 10. Apples and oranges. 

I'm 22 years in and about 225% due to high savings rate.  Over time appreciation of stocks and real estate will overwhelm income assuming income doesn't grow too fast.  The key factors, of course, are savings rate and appreciation rate. With 50% annual savings, 7% compounded annual returns, and 5% annual raises, you can reach 100% in about 22 years.  Dial up savings or investment growth rate, and it will happen sooner.

I do not disagree with your assessment.  However, age is a much easier number to come by with far fewer questions about when to start counting.  I worked full time during college, but not in my chosen career field.  Some people go to school while working in their chosen field, but at a much lower salary than after they graduate, etc.  Your numbers are very impressive.  I don't think I saw your age but if you would be willing to share, I'll put you in the database as well.

MMbergmann

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Re: What is your net worth to lifetime earnings
« Reply #33 on: November 08, 2018, 10:01:33 AM »
34.5% at age 29, started work after college at 24.

big_slacker

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Re: What is your net worth to lifetime earnings
« Reply #34 on: November 08, 2018, 11:30:31 AM »
Right at 20% at age 44. As with most things I've started late, haha!

Props to those of you with way higher numbers, very impressive!

mrmoonymartian

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Re: What is your net worth to lifetime earnings
« Reply #35 on: November 12, 2018, 02:08:49 AM »
At 29 I had about 13%. At 36 I have about 70%.

BoonDogle

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Re: What is your net worth to lifetime earnings
« Reply #36 on: November 14, 2018, 07:54:20 AM »
Thanks to all who have participated.  I'll keep updating if we get any more participation.

Updated averages:

         -25 - 7.3%
26 to 30 - 29.5%
31 to 35 - 42.3%
36 to 40 - 66.8%
41 to 45 - 55.8%
46 to 50 - 68.0%
  over 50 - 101%

SKL-HOU

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Re: What is your net worth to lifetime earnings
« Reply #37 on: November 14, 2018, 09:24:08 AM »
Around 10.5% at age 42.

I am pretty far behind but I plan on catching up and FIRE'ing around 53-57 range (depending on my son's college expenses).

chuckster

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Re: What is your net worth to lifetime earnings
« Reply #38 on: November 14, 2018, 12:13:18 PM »
Age 41: 66.72% :)

lexde

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Re: What is your net worth to lifetime earnings
« Reply #39 on: November 14, 2018, 01:03:25 PM »
I’m doing gross earnings, and am only at 23%.

That said, I’m only a few years in. Student loans will be paid off this year and then I’ll get to make lots of progress on this number!

It’s very cool to see my lifetime earnings, though! (Currently only $131,390).