your progression of "Lifetime Wealth Ratio"

[johndoe]

It'd be interesting to see how people progress over time:  Lifetime Wealth Ratio = Net Worth / Total Lifetime Income.  More discussion on LWR here: https://www.evidenceinvestor.com/the-one-number-that-really-matters/  For my below numbers, net worth includes property values as estimated online and income is from the Social Security website.

end year ... age ... lifetime earnings ... LWR
2017      ...  30  ...    $464,000        ... 47%
2018      ...  31  ...    $518,000        ... 52%
2019      ...  32  ...    $573,000        ... 64%
2020      ...  33  ...    $628,000        ... 73%
2021      ...  34  ...    $686,000        ... 89%
2022      ...  35  ...    $748,000        ... 83%
2023      ...  36  ...    $826,000        ... 90%

Fitting a linear equation to both net worth and earnings (which are both assumptions!) I'm expected to get to 100% at about the end of 2026 at right around $1M!  Pretty crazy to think I'll have earned and retained the same by that point.  Plus this income includes taxes, so perhaps I'm already beyond the "break even" spot.

I'd be curious to see how others are doing, what ages / life situations have impacts on this, and how compound interest helps people further into this journey.

[Dicey]

I'm a lazy-ass FIRE person, so I can't be bothered with that kind of number crunching. I'm also not used to counting property values, because: lazy, plus we have to live somewhere, lol. I don't count vehicles either.

HOWEVER: In my pre-FIRE days, I counted everything.

The miracle of compound interest is that once it starts doing the heavy lifting, it's insane how it grows.

That's why it makes more sense to invest as much as you can as early as you possibly. Compound interest allows you to earn fewer dollars to reach your FIRE goal. This is why I don't advocate for accelerated payoff of mortgages, and treating said (affordable, tax-deductible, fixed rate mortgage) like bonds in your portfolio. Ignoring the mortgage, or mentally putting it in a separate bucket, can make your portfolio too conservative.

[ATtiny85]

I have no idea what my lifetime income is/was, so no denominator available.

[johndoe]

I'm a lazy-ass FIRE person

a WHAT?!  Sounds like an oxymoron to me :)  Out of curiosity, do you see property (either purchase price or "current value") as part of your net worth?  I would think "DPOYM" followers should count the asset since they're paying for the liability, right?

I have no idea what my lifetime income is/was, so no denominator available.

Even an estimate might be interesting, or helpful for other users

[Dicey]

I'm a lazy-ass FIRE person

Out of curiosity, do you see property (either purchase price or "current value") as part of your net worth?

In Pre-FIRE times, I counted home/rental equity, just because it helped with motivation. Then the forum came along, and eventually "Races". Most of the races count invested assets only, so I started thinking of RE separately. You get to a point where it just doesn't matter. We own two older, well maintained vehicles and an expensive RV, all debt free. I don't count them either, even though the rig is worth quite a bit more than we paid for it. Do whatever helps you reach your goals.

I would think "DPOYM" followers should count the asset since they're paying for the liability, right?

I'm not quite sure what you're asking here. For anyone, a mortgage* is a great hedge against inflation. It can also act as a bond in your portfolio. A "paid off" house is kind of a misnomer. You will always be on the hook for property taxes, utilities, insurance, and maintence. Every homeowner is "paying for the liability" if you think about it. If this isn't nt what you meant, please let me know and I'll try again.

*Requisite disclaimer: I'm US based, and I'm referring to long, low, affordable, fixed-rate mortgages.