jump to navigation

Net Worth: Wealth Score January 2, 2008

Posted by pf in Expenses and Savings, Net Worth Update.
Tags:
trackback

Some of you may recall one of my posts back in April 2007 entitled:

Net Worth: How Am I Doing?

At that time, one of the tools I had listed was the wealth score. Unfortunately, at the time, I did not have a current copy of my Social Security statement and could not calculate my score. Well, I now have it and have gone through the exercise.


It is essentially 3 steps:

1) Add up your lifetime earnings

2) Calculate your net worth

3) Divide your net worth by your lifetime earnings

Depending upon the stage in your working life (ex: early, mid-career, or near retirement), there are some suggested ratios:

Early: 0-25%

Mid: 25-100%

Near Retirement: 100%-200%

For myself, I was somewhere in the mid 50’s percentage-wise. So, is this good? Honestly, because the suggested range for mid-career is so wide, I don’t really have any idea. I guess one way to look at this would be that if you are near the bottom of the range for your career stage, you may want to pay some more attention and think about how you can increase your net work…and if at the top, then bully for you! Keep doing what you’re doing.

I guess since I am in the middle, I will say to myself “not terrible…but keep your ass working at it because you’ve got a ways to go yet”.

Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: