What Is The Average And Median Net Worth For Those 45 to 54 Years Old and How Do You Stack Up | Retirement Planning for the Future

Troy Sharpe: We all want to know how we compare to others when it comes to our net worth. In this video, I’m going to talk to you about the average and the median net worth for those aged 45 to 54.

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Hi, I’m Troy Sharpe, CEO of Oak Harvest Financial Group, CERTIFIED FINANCIAL PLANNER™ Professional (CFP®), and host of the Retirement Income Show. Hey, before we jump into this, if you could take one second to hit that thumbs up button, YouTube will then be more likely to show this video to other people so they have an idea of where they compare for those people when it comes to net worth ages 45 to 54.

We need to talk to you a little bit about average and median. The average is the sum of a series of data points. We have a bunch of zeros and 1 million. If we add all these up, it equals 1 million. You take that million, you divided by the number of data points, a million divided by 10, 100,000. That’s the average in this data series, but we can see that that is obviously skewed because a bunch of zeros and 1 million doesn’t quite tell the whole story.

The median is the one that’s right in the middle in a series of data points. The median is in the middle. The average is the sum of all of them divided by the number of data points to get the average. This is important to understand because when we look at the average and median net worth for those 45 to 54, we see a huge disparity in these two numbers. The average is always skewed by the outliers, but the median is right in the middle. If we had a million people on one side and a million people on the other side, the median net worth for those aged 45 to 64 is 168,800.

If you’re not at 833,000, don’t be intimidated. We just need to do a good job of starting to save, make sure that you’re investing. Compound interest over time is a miraculous thing. Then we need to make sure that we’re not spending more than we take in, and please don’t use your credit cards and carry balances.

This video is going to be part of a series where our team is doing research on the Federal Reserve website to gather this data, because this data is not easily accessible. It’s not easily out there. We’re going to give this to you, and the reason we’re giving it to you, is we want to help. We want to make sure that you know where you stand compared to others so you can start to make better decisions. Maybe this motivates you to get on track. Maybe this motivates you to not buy that boat. Whatever it is, we’re going to continue to give you this information.

If you hit that subscribe button and that little bell icon, you’ll be notified when we publish additional research helping you to understand where you compare to others in various financial categories.

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