What is the Average Net Worth of Americans?

Net worth can be defined as the total value of assets you own, considering the liabilities and debts. It is the value of all the non-financial and financial assets owned by an individual or institution minus the value of all its outstanding debts. In simple terms, net worth is the difference between what you own and what you owe. Net worths can either be positive or negative, depending on the value of assets and liabilities. Positive net worth is where the assets outweigh the liabilities. The inverse is negative. Assets consist of investments, bank savings, retirement funds, land, etc. Liabilities consist of mortgage, loans, credit card debt, student loans, and all other debts someone owes. Net worths are rarely constant and stagnant; they keep fluctuating, and in the majority of cases, your net worth grows as you age.

In this article, we shall discuss the average net worth of Americans. The data is grouped into different classes such as age, race, level of education, family structure, etc.

As of 2019, according to the data released by the Federal Reserve, all American families’ average was $746,820, and the median net worth was $121,760.

Average Net Worth by Age

cashYour age has a direct correlation with your net worth. There’s a common trend in people building and accumulating wealth as they age. According to the recent financial analysis, the average net worth by age for Americans is $76,340 for those under age 35 (Average net worth at 30 is around $ 70,000.) A net worth of $437,770 for those ages 35 to 44 (The average net worth at 40 is estimated to be $400,000.) $833,790 for those ages 45 to 54 (The average net worth at 50 is $800,000.); $1,176,520 for those ages 55 to 64, $1,215,920 for those ages 65 to 74 and $958,450 for those age 75 and above. However, this interpretation is skewed by the few extremely wealthy individuals. It is also important to note that as people age, their net worth tends to increase, so older Americans generally have a higher net worth than the younger cohort. The average net worth at retirement is $1,217,700.

Level of Education

An increase in the level of education is proportional to the increase in net worth. Colleges have a payoff in terms of net worth. Those with college degrees have an average net worth ($1,516,910) which is more than nine times that of the typical American who doesn’t have a diploma from high school and about four times superior to someone who never graduated from college. While higher education can be costly in the short term, it remains a long-term investment.

Where do You Live?

Where you stay correlates with how much you are worth. Although living in the cities has its downsides, such as higher costs of living, city residents command more wealth than their counterparts who live outside the cities. The same principle applies to life in urban and rural America. Average data indicates that the typical American in a metropolitan area has a net worth of almost three times that of a rural American. This can partially be attributed to how real estate in major cities and towns is of higher value, contributing to urban America’s higher net worth. People living in urban areas have an estimated net worth of $806,400, while the residents in rural areas command a net worth of $324,800.

A key driver in the disparity of wealth in rural and urban America is job opportunities and income. Well-paying jobs are no longer available in rural areas. The available few cannot out-compete the sheer number of quality high paying jobs in urban America.

Race & Ethnicity

The race is also a confounding factor when it comes to net worth. There exists a racial wealth gap in America. For instance, the average Black and Latino families still have a net much smaller when compared to the average white family. White families have the highest median and mean family wealth; $188,200 and $983,400, respectively; which is more than 15% of the average black American family. The intergenerational transmission of wealth can partially explain this disparity. White families hold more wealth relatively as they are more.

Wealth-holding is relatively high among white families as they are more likely to have received an inheritance at some point in their lives.

Howe Ownership or No?

Real estate and homeownership are some of the biggest drivers of one’s net worth. In America, citizens owning a home have an estimated net worth that is ten times higher than that of a typical American with no homeownership status. Homeownership is directly correlated with higher net worth. Homeowners have an average net worth of $1,099,070 that is more than ten times higher than those who don’t own homes ($95,560).

home owner
Home owners are typically among the higher net worth individuals in the USA.

Marital Status & Personal Life

The family structure also tends to dictate net worth in America. It has been noted that couples are financially wealthier than their single counterparts. This can be explained by their ability and leeway to share the expenses. This is further reinforced because even couples with dependents still have a higher average net worth than single people with no children.

Common challenges encountered when calculating one’s net worth include; working with rough estimates due to failing to assign accurate values to the assets. There are still debates on whether personal residences should be classified as an asset when calculating net worth. There are finance experts who agree on their inclusion, while others do disagree.

How Can You Increase Your Net Worth?

There are a variety of ways in which you can improve your financial status. These include; establishing an investment opportunity as early as now, maximizing your retirement savings, getting smart with your finances, and many other ways.

Net worths are a peep into someone’s financial life. It is treated as a financial report card tracking down your financial activities. It allows you to know where you stand financially, after which you will adjust accordingly by being more mindful of your spending, better prepared to make sound financial decisions, and more likely to achieve your short-term and long-term financial goals.

Nick Vertucci The Real Estate Icon

In this fast moving world of technology and entrepreneurship, things are as hard as they can be these days. A lot of us spend most of our lives trying to get out of our financial troubles. The world has become so competitive that it has become ten times harder to reach a level of success that people used to attain easily many years back.

Things can get quite easier if only we would know what to do with our lives. If only there was a mentor guiding us all the times to make the right decisions, choose the right career path, where to invest and how to deal with family problems and work life, we would easily live through.

Nick VertucciAlthough all of us can’t get a personal mentor to look out for, there are still people out there who you can look up and get inspired from. One such person is Nick Vertucci.

For those of you who are unaware of Nick Vertucci, he is the founder of Nick Vertucci Real Estate Academy also popularly known as NVREA. The reason Nick serves as a great inspiration for people struggling in life is because he himself has been there.

Nick belonged to a very humble family which was a representation of any family who was struggling to make ends meet. From day to day Nick’s family had to sacrifice on basic things to make sure that their ends meet. But by the time he turned 10, Vertucci lost his father and things became worse for his family.

Nick continued to struggle and found ways to sort his life out. It wasn’t until his 18th birthday that he was finally able to step out of the dark times into the better future. Nick started a private computer sales business which did great for him until in 2000 when the dot com crash era came. Just like everyone else in the tech industry, Nick’s business suffered such a huge blow that his company was filed for bankruptcy.

This didn’t stop Nick from still perusing for a better future. He was invited to a real estate academy where he learned about investing in real estate and eventually started doing what he learned. In the next 10 years, Nick had already turned his life completely opposite from where he started out.

He got so good at making real estate investment decisions that there was no stopping him. He climbed the ladder until he was considered one of the best real estate investors in the US. For that reason, we decided to profile his career on Famous Net Worth.

He later formed his own Real Estate Academy and made a goal to train people like him.

How Much is Nick Vertucci Worth?

At this point, it hasn’t been reported anywhere, but since he charges some $30,000 for real estate courses, it’s probably quite sizable!

 

Golfer Rory McIlroy Has Earned Almost 200 Million Dollars

The story of Rory McIlroy Golf Career is an unusual and interesting one. Superstars in any discipline have a family line of the art or sport and driven by the parent taking part to become such

With Rory, it was a bit different. It seems as if he was born wanting a golf club in his hand and his father Gerry put a plastic golf club in his hand as a small child. There was no pressure exuded on the Rory McIlroy Golf Career but the boy took hold and dad supported him in his endeavors not thinking he would work to be the Golf superstar he is.

Michael Bannon, a Golf superstar, took the boy under his wing. It perplexed Gerry McIlroy about what to do about his son’s now obsession with Golf. It turned out to be the best move he made for his son. Michael is still his coach today.

The first time the people closest to Rory believed he could be a superstar was in the under 10 World Golf Championship. This is the time that more substantial work is done to push a child forward.

In 2007 he reached the top of the World Amateur Rankings. Leading up to that is a full complement of accomplishment from Europe to Ireland done with the Nick Faldo’s Youth Golf Series. He’s the youngest golfer to hold a European tour. 2009 is the year when he actualized the first European title in the Dubai Dessert Series.

To inspire other young golfers aspiring to such heights today, we’ll share the fact that they worked his journey with setbacks, failures and disappointments. The key to his success is resilience. He bounces back like a rubber ball and learns from mistakes.

In 2010 at Quail Hollow, he received his PGA Tour win and garnered the attention of the Golf giants who are the right people to get in front of. He fell again soon thereafter in the Augusta Nationals, only to recover and come back stronger than ever in the US Open. He holds the lowest score in history at 16 under total untouched. His game holding steady straight through to 2014, where he claimed his spot on the top of the mountain with names like Tiger Woods and Jack Nicklaus. Himself included, these names are the first to win 4 major titles before the age of 25.

Rory McIlroy Net Worth

So, how does a guy like Roy McIlroy make his money and what’s the lifestyle? After all, he’s called an organic Golfer. He wasn’t born with a silver spoon in his mouth. What does having his net worth be at $200 Million in one statistic because of Nike? Regardless of the source, he has not much to worry about in his still young life.

Let’s put the Rory McIlroy Net worth in perspective. His Golf wins only tally up to around $70 million, but his sponsorships and appearance fees can be a couple hundred million at a time. We mention Nike first because of its $200 million lump sum endorsement fee. Next up is TaylorMade at a mere $100 million over a ten-year period.

But, who is he now that money is no object, and he doesn’t enjoy the constant wins in the same way as he did in his career’s Genesis? So, let’s get to the standard things you’d expect, like the $400,000 home he has in Florida and the $300,000 car he has parked outside.

His home boasts a game room, pool and gym with the whole thing nestled up against the PGA course. You could bet he’s reliving some moments over coffee in the morning overlooking that baby!

How he’s a ‘normal’ kind of guy:

He got engaged to Tennis player Caroline Wozniaki but broke it off soon after in the same year of 2014, another big ticket year for him. He made a romantic comeback and married Erica Stoll in Ireland at the Ashford Castel to the tune of $260,000 but at least the consolation was a Stevie Wonder performance. The Honeymoon at Sandy Lane in Barbados.

His attitude is boredom with making the money. He didn’t say bored; he said, tired of and not preoccupied with creating a certain amount of it. What he’s preoccupied with are the wins he makes now. That’s spoken like a true blue passionate Golfer.

He went through the lessons about having a lot of money, but not the way others did. After the purchase of his first expensive watch at 18 when he checked his balance at an ATM, the novelty wore off, which is uncommon. Looking back at his story, it has uncommon written all over it.