Household net worth is the value of assets such as a house, car, stocks, retirement accounts minus debts, mortgages, credit card debt, etc. The median figure is what matters – it is the point at which half of people are richer than you and half are poorer than you. Mean is meaningless because people like Bill Gates skew the figures so far upward it isn’t useful for analytical purposes.
If you are 35 and under and your net worth – assets minus liabilities – is more than $11,800, you are above average. That seems like a really low bar, but it comes directly from the Census bureau.
Author: Joshua Kennon
https://www.joshuakennon.com Joshua Kennon is a Managing Director of Kennon-Green & Co., a private asset management firm specializing in global value investing for affluent and high net worth individuals, families, and institutions. Nothing in this article or on this site, which is Mr. Kennon's personal blog, is intended to be, nor should it be construed as, investment advice, a recommendation, or an offer to buy or sell a security or securities. Investing can result in losses, sometimes significant losses. Prior to taking any action involving your finances or portfolio, you should consult with your own qualified professional advisor(s), such as an investment advisor, tax specialist, and/or attorney, who can help you consider your unique needs, circumstances, risk tolerance, and other relevant factors.
