Net Worth: Wealth Score January 2, 2008Posted by pf in Expenses and Savings, Net Worth Update.
Tags: net worth
Some of you may recall one of my posts back in April 2007 entitled:
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:
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”.