Well it's a good thing that we don't have to report our net worth to ridiculous underling wannabees on this site with "red marks a lots" in that case, isn't it. An online basic econ 101 course for those who don't understand future and present values, including things like annuities would be appropriate.
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What I can tell you is this: If I were to require anyone of you people to produce a net worth statement and you brought me such a report, I would have to bring my big red marks-a lot pen to mark through most of the bogus line items you included in your list. At the end of my corrections, you will be likely told to not quit working, as you still have a long ways to go to crack $50,000. Who knows if I’d even need to move the decimal over to the left a few places. Mo--ns.
I guess if you are working you should add in your forecast earnings to calculate your current net worth. Plus any future social security, tax refunds, lottery and gambling earnings,inheritance, future value of real estate, and so forth. Just total it up. You are rich!
My net worth is comprised of foreign and domestic beanie babies. I like investments with high capital appreciation MFs!!!!
It’s obvious that many of you don’t understand or know how to figure net worth, such as @qTnpu, for instance, poor thing failed math in HS. Annuities converted to current value, particularly those that pay survivors benefits, are commonly included in net worth.
It’s obvious that many of you don’t understand or know how to figure net worth. For example @qTmul, what does the net present value of the pension annuity have to do with net worth? Answer: Nothing much. If you get your annuity payment deposited into your account today, then it can be counted today. A person’s net worth is a snapshot in time of their present-day unencumbered assets, and nothing to do with the future value of anything.
@qTsuq, brag???? Uhh, keep saving. You'll catch up. lol.
- 5 million at 30.
Just here to brag. Lol
- 9 MM for me. No where near twice lifetime earnings. Always thought I was doing fine. Do you guys ever figure in that some people spend significantly more or less on wants and needs, some have kids, some none, some give to charities, some take care of & support elderly relatives, etc. or is everyone self-centered or Dinks in the Woodlands to you?
Yes that's about right, for me it is approx. $200MM. so your example is very close. Thanks for that useful explanation!
A rule of thumb, your net worth should equal your lifetime earnings 2/3 of the way through your career. It should be 2x your lifetime earnings when you retire. There is no "typical" figure for Chevron employees since lifetime earnings vary by a couple orders of magnitude, at least (e.g. $4MM to $400MM).
Are you figuring in the net present value of the pension annuity?
The first thing is to understand about how Net Worth is calculated, and it’s not very difficult, is to sum your ASSETS and subtract the total LIABILITIES. Examples: Money in bank and retirement accounts are straightforward because there are no liabilities to subtract. A house with a mortgage requires appraising its market value and subtracting the mortgage payoff amount. One thing you should NOT count in your net worth is Life Insurance. This doesn’t factor in to net worth, but can be footnoted as a comment for whoever may be remotely interested to read.
My net worth currently, after having retired from Chevron 5 years ago is $2,285,000. I worked for the company for 26 years and left at a 22 Pay Grade. I’m now 65 years old and drawing Social Security along with the Chevron annuity pension. No mortgage for over 10 years and my retirement accounts are untouched and likely to stay that way until I’m forced to take mandated RMD at 70.5 years of age.
Wow you resurrected this old thread? you're about right though, most people would be in that range and the big shots will just be the ones posting and bragging. Sort of the "silent majority" theory. also the BS-ers. Give them some time. They'll chime in shortly lol.
I would guess that it's more like 1-2 MM but maybe that's just my perspective, from a lower pay level. Also I always considered myself mid-level. not high or low, and I realize that you hear more chatter from those who have more to boast about, it's only natural and has been that way for years.
I think that the net worth of approx. $2-4MM at retiree age sounds about right. I have a little way to go but am shooting for that at retirement. Remember, costs of everything have increased. $1 million, although a great value/dream number and milestone back in the 70's/80's and even 90's, is not anywhere near what it used to be, in 2018. Don't fool yourself. The old $1 MM target should be more like 2MM for a comfortable retirement, even with the pension in 2018. These guys around here calling everyone "BS" who mentions anything with 7 figures seriously need to get a life, or stay away from all financial discussion/retirement boards.
-cbkaz, don’t hold your breath. “The CVX pension is one of the best, and that's primarily because it's one that's still around. It's also on par with the few majors left that offer one.” Read the news. Just today October 15, Sears Roebuck & Co filed for bankruptcy. Sears is now another pension fund burden to fall on the taxpayers through the PBGC. Let’s hope Chevron retirees don’t have to confront the same fate in the years to come.
cbxjo That's perfectly fine, no one needs to know, that information was only offered and available for those who would like to discuss it. Since this is an anonymous forum, I'm not sure how it matters, no one knows who anyone else is and will never know, large or small, there's no need to be embarrassed if you happen to have a tiny little net worth, from personal and family financial obligations, so be it. No one knows who you are. It's no problem if you do or do not wish to reveal your minuscule net worth. Shoot, many people have a negative net worth, paying off debt, etc. No need to embarrass yourself. This is an anonymous forum, so that's not really an issue.
My net worth is MY business. What possible insight can anyone reap from me telling everyone what I have? This is one of the most ridiculous threads posted. Everyone’s situation, wants and needs are as different as where they live, how healthy they are, how many people they need to care for, etc, etc, etc. Worthless thread. Just move on.
Yes indeed. The CVX pension is one of the best, and that's primarily because it's one that's still around. It's also on par with the few majors left that offer one. That forces the non-saving types to have a relatively solid back-up plan. And it's easily convertible to a lump sump(value) with an annuity calculator whether you take it as a lump sum or not. So you add that to your 401k, and any other savings & assets, for a retirement age employee, 2-4 MM is common, and 10 MM is within reason, although not as common, unless you are an extremely poor saver and/or a combination of low PSG, low time in service, no big deal, you have time. Yet hooligans on this site constantly yell "BS" whenever real numbers are discussed. You all happen to be in a very well-paying industry relative to the rest of the workforce on average. There are higher, Medical/Legal/Financial/IT coding, etc. but on an average the O&G industry worker is in a good spot and should be happy/proud of maintaining that career income unless you truly hate it. I know very few like that. I like what I do and have been laid off twice during major workforce reductions. Some of the highest regarded industry professionals also share that fate and we don't think anything of it. In most cases you end up with a better job/position.
Good math, but remember two more items - pension and stock options. The pension lump sum on a 30 year career would be $1-2MM. Stock options, if any, could be another $1-2MM. So if Mr Super Saver was also a high PSG, then would only need to save about $6MM over 30 years, which is a lot easier and might imply either lower CAGR or less annual saving.
The keys to building a nest egg are: saving a lot, investing well and having a lot of years to do it. If one had a 30 year career with CVX, saved $25,000 the first year, increased the amount of salary saved by 10% each year and had an annual return of 8.14% per year (which is the S&P500 CAGR since 1988), $10MM is achievable. You could save less and still get there, but you would need some lucky stock picking. Or maybe you got real lucky with real estate (unlikely) or inheritance or a working spouse with great stock options.
I agree, low 7 figures in retirement either savings or net worth is average for medium to high earners in the O & G industry. 2 to 4 million is common including home equity. And I know a few with much more, who bought at the right time and have cleared $10mm. That is not as common, but not as rare as you may think. I have an in-law in IT who is into 8 figures and many more in that field wouldn't even bat an eye about it. a Recent article from a TV financial person claimed millennials wishing to FIRE (financially independent retire early, a recent trend) need at least $5mm, maybe more. Many argue that's unrealistic, yet many of them can easily reach that with their high savings rates. Just to put it in perspective. You're in the top 10%, some of you top 5%. Be happy about it! Why all the bitterness?
I would guess that the net worth of the "average" retiree to be about $2 to $4 MM including residences with considerable outliers. I am lucky to be in the upper percentage of the group being a diligent saver/investor for many years having a net worth of around $12-14 MM depending what you include.
Is it just me or are they deleting posts on this thread for no apparent reason? I posted my net worth a while back and it was deleted. Nothing unusual, bad or offensive, no profanities, nothing outrageous, just my very modest net worth, as others have done below.
That's strange and particularly petty behavior by the moderators, if they are in fact humans and not bots.
bSrsg, Although many retirement sites push 25X your income, salary, or some other irrelevant number, the technically correct calculation is to use 25x your required retirement income. Also that assumes you are invested conservatively as a typical retiree would be. That is a tough number to predict with Health insurance and other unknowns, but give it a whirl. That puts the 4% (1/25) as the expected average real return on investments after inflation and market fluctuations are figured in. Don't make the mistake of comparing 4% to your market returns in any given year particularly a bull run like we are in now. That would be an incorrect comparison. The 4 or 3.5% SWR is intended to weather a bear market & corrections as well as include inflation. And you need to account for income tax although that can be minimized in retirement years.
I have a nest egg of about $650k and I will also have the pension. That's plenty for me and the wife + SS which will be kicking in shortly. All the kids are gone, on their own and successful. I don't really know what I would do what I would change with more savings or income. I've never needed or pined for a lot of cash. Can't take it with you!
I have 28 years at Chevron, I retired(EOI/during layoffs) as a PSG 25 at age 50. ~ $12MM net worth not including cash and cash-like investment vehicles which is a small percentage.
7 year employee. 30 yrs old in IT. $900K in my 401K. , about 250K in cash and CD's. Home paid off. That is separate from my spouse who has about the same, a little more, actually, as an older engineer. We keep separate accounts, and one joint for expenses. I track my FIRE progress separately to keep track of my personal success and progress. FIRE is Financially Independent, Retire Early. It's a goal. Look it up.
Please don't be offended if someone just happens to earn more than you or be a better saver/investor.
@bVvas, you and your FIRE will burn you soneday and your illusions of grandeur will vanish in a flash. Back to reality with your feet on the ground and your a$$ in the can. Believe me that nobody shares your fantasy. Sorry, fella.
8 year employee. 32 yrs old engineer. $400K in my 401K. 50K in Roth IRA combined with spouse. 130K in separate bank and personal brokerage accounts. $130K equity in house. Thankful for Chevron.
I’m a 10 years employee, retired at 28 with $30MM not counting the house. He’ll, while we’re all making up things, let me go full tilt.
Let’s get real folks! I make $250k/yr now, but bank a good share of that because I just do not need it to be happy. When I retire I suspect that I can be completely happy living on $50k, and that not sitting in a dump but rather traveling and having a grand time. There are so many cool places to visit that really do not cost much: hidden fishing holes, isolated diving coves, meandering rivers, and much, much more. I could live on several times $50/yr and have little worry about depleting my resources before I die,which is not nessisarary, but does give me some comfort from worry. I am still employed and enjoy my job, but my biggest concern is that I will not be smart enough to know when enough is enough so that I can take some time for fun before the end. You guys can compare the size of your “member” all you like, but at the end of the day the real metric is are you happy?
Good for you -bTmwg. Make it last.
30 year employee, retired PSG 24 at age 52. ~ $7MM.
@bTyts, The information I laid out is true. I don’t consider nearly $2 million to be in the lower middle class either.
@bSzrm, So Fidelity says 7 times your salary in your 401k is needed. Let’s see..... I was earning $99,500 when I was laid off. To to the math, $99,500 x 7 = $696,500. But you recommend 10X salary or $995,000. Then that would mean I should be fine, because when I got the boot, I already had $1.37MM in my 401k + my lump sum pension was worth $466,000 + I received a severance package of 1 year salary of $99,500. I suppose then $1,935,500 in Chevron retirement savings, aside from my paid off home valued at $235,000 and over $100,000 in the bank savings account would make me not lose any sleep. Oh yeah, I forgot to count the $2,855 Social Security monthly benefits that will kick in 2 years down the road.
The 4% withdrawals rule suggests a need for 25 times base salary is required. Some suggest 3% withdrawals would be safer! Your mileage may vary.
Fidelity reckons a 55 year old needs 7x salary in their 401k alone so ten times salary net worth looks right.
@bKzmr, There is no Rule of Thumb for remotely calculating anyone’s net worth or estimated value of their retirement savings. That’s ridiculous if anyone even suggests that.