Senior Citizens net worth
 

According a report released by the census bureau on Mon--the average household headed by a person over 65 has 47 times more wealth than a household headed by a 35 year old

Makes you wonder who should be getting age related discounts--looks like fixed income , won't float

I don't understand what the census bureau is trying demonstrate with this. Most young people are still paying off their home, raising kids, student loan and paying the bills. Big Duh here, naturally someone over 65 will have more wealth because their home is paid off, their savings/investments have grown over the years, and they aren't raising kids. Just more class warfare garbage.

Sounds reasonable to me.
At age 35 my mortgage was nearly equal to my assets.
Net zero.

47 times doesn't sound correct. Can you provide a link to the census report? This is the latest data I could find for household wealth on the Census website:

Age of Householder Net Worth
Less than 35 years $8,854
35 to 44 years 57,600
45 to 54 years 104,300
55 to 64 years 178,300
65 years and over 201,500
65 to 69 years 197,500
70 to 74 years 218,200
75 and over 193,600

Where did the census bureau get this information? As far as I know no governmental body knows my net worth. The IRS knows my taxable income but the census bureau should not be able to access my IRS information.

Most folks start out with little as young adults. It takes time and the power of compound interest to build net worth. Whether the number is twenty or two hundred times does not matter. Too, many Baby Boomers inherited a lot and their children should inherit more as the economy has grown since WWII.

Agree, doesn't pass the sniff test.


Here is 2016: Wealth, Asset Ownership, & Debt of Households Detailed Tables: 2016

What exactly do you mean by "too many baby boomers inherited a lot"? I didn't inherit anything, nor did my wife. Although I do know boomers that had inheritances, most of the people I know got very little if anything. We bought our first house when I was 22, not an expensive house, and paid it off when I was 26 with no help from my family or friends. I worked a mediocre job full time back then, I also had a part time job and did farm hand work on Saturdays, my wife had a part time job and took care of our daughter. I can still remember when I was very young my parents celebrating that they paid off their mortgage and they did it the same way we did. My parents savings went to nursing homes and there was nothing left at the end. My father struggled with Alzheimers for more than a decade and would not take financial advice from anyone regarding protecting his assets. Unfortunate but that was his way, his way or no way.

Therein is an important point about a huge difference in the American economy in the last 40 - 50 years. There is absolutely no way that a couple working mediocre jobs and part time jobs can afford a house, much less pay it off in 4 years. Home ownership used to be a major contributor to upward mobility. It no longer is an option for those without a good paying job, or two good paying jobs.

We might all be surprised if we knew what the government (or corporate America) knows about us.

Data that is published by the government that can later be used to justify slashing seniors social security and Medicare benefits. Doesn’t smell good to me.

There are some lower priced homes on the “Historic Side”.

That may apply to married couples with 2 incomes but when you lose your spouse and 1/2 of your income, it is very hard to make the money stretch far enough.

I did not write “too many”. I wrote “too, many”. Huge difference in meaning minus the comma.

Good on you. My personal story is similar. I started working part time bagging groceries at 14. Although I inherited very little many of my contemporaries have inherited meaningful sums.

Agree

Sounds about right
 

My net worth is probably around 200 times what it was at age 35, so 47 sounds more than reasonable. It's called compounding.

30 years of compounding will get you about 20 times

47 times is nowhere near reasonable or accurate. See Post No. 4 for the current Census Bureau data on household wealth at all ages.

I've often wondered how (or 'if') pensions and such are included in any sort of net worth calculation. I know it typically disappears upon death, but it still has a lot of value during one's life.

And what is the answer? Perhaps a long term relationship of two people with mediocre jobs not wasting money, saving some money every week, knowing how to cook and sew and repair and paint and restore and reuse and choosing to not buy things they don't need. So much of having a "good paying job" is really the level of intelligence we are born with, not education as some want us to believe. It is just pure cussed luck if we are born smart enough to be a physician or an engineer or a bio-scientist. No one on this earth can raise their intelligence score, but they can use what they are born with to do the best they can. I believe that many are not even trying and looking to others to make things easy. Not all. Some are indeed born handicapped and permanently in need of our help and caring support, but the rest of us? Well dang it, just work harder and be careful with your money and you can end up here in The Villages with the "big dogs".

This is why I don't give the Census Bureau any information at all. I don't answer any questions from them. Too much data digging of my personal information.

Ohiobuckeye
 

Hum, I've never ever got a question from the IRS that I know of. I would think if someone is getting questions from the IRS they must either have a lot of money or have been audited. If I would get a questionaire from the IRS I would think you would have to answer their questions since they are part of the govt. But me myself I wouldn't answer them unless I called them first. Letters & emails I was told to never answer these!

The data mentioned here is extrapolated from the CPS 2019 Annual Social and Economic Supplement which asked participants to report their family income for 2018. About 60,000 households are selected for the CPS each month, and it is a voluntary survey. Participation in the CPS is important because the answers represent thousands of other addresses and people. The information is collected by interviewers using a computer-assisted survey instrument, through personal visit and telephone interviews. This is a significant way for the OBM to inform the nation of its social and economic well-being. Well-designed empirical research instruments are crucial in identifying the status of issues facing our country based on factual information. Participation is, of course, voluntary.

So, why do you take the discounts? Reason they are more wealthy the WORKED longer and some saved their money. Most 1%er have scheme going praying on the poor/middle class.

Sorry, but it true many baby boomer don’t have clue what hard times are.

Dr. Phil;

"Those who have nothing to hide, hide nothing".

I don't think many people obsess over this.

It is difficult to understand how net worth can be extrapolated from net income.

If I was worth 47 time what I had at 35, I would be now worth about $50!

So, you had $1.06 when you were 35. At least you had a positive net worth.

Sorry, gg, but that was before the internet. Heheh. :)

I had a few good weeks!

Doesn’t anybody want to point out that there was a comma between “too” and “many boomers “?

Years back homes weren't McMansions. They were in the 1,000 to 1,200 square foot range and usually had no garage. The young people now want 3,000+ feet with a 2 or 3 car garage. Marble or granite counter tops, custom cabinets, hard wood flooring and on and on. All that costs mega bucks. A bunch of years back I sold real estate. The son and daughter-in-law of a friend had been married for a couple years and were living in an apartment. I found them a 2 year old house for $25,000 that was in excellent condition. It was 1,000 square feet, 3 small bedrooms, 1 and a half bath, with no garage on a small lot. You buy less than the maximum the mortgage company says you can borrow.

There is no possible way to verify those numbers, 47 times is just not true.
Perhaps it came from a grocery store check out line magazine

Sooooooo happy (& lucky) there was no internet, cell phones, etc., when I was growing up. All that evidence. :ohdear:

When I bought my first home it was $19,000. And I didn't have the total I needed for a down payment. So I scheduled the closing for the afternoon and went to another bank in the morning and borrowed $1,000 so I could cover it and it would not show up on my credit report.

I had just got out of college and started working for IBM and made $8,500 a year. So I did have a decent jobs, made about 40% of the home cost and thought I had signed our life away with a 20 year mortgage. Today the ratio between salary and home cost is a bigger gap in most places, but mortgage loans now are 30 years. And the houses are bigger. Mine was a 4 room cape, no garage, unfinished up stairs. I finished the upper level myself, added some fencing and landscape and sold it 2 years later for $26,900 and thought I made a killing. By then I was over $10,000, my wife was a school teacher making $5,000 so we bought a bigger house for $45,000. Even had a 2 car garage. And the journey was on.

Going out on a limb assuming the government numbers are correct, it's really not too hard to believe. The youth (being generous here) lives paycheck to paycheck, saves nothing, and spends every dime on 65 inch flat screen TVs, latest iPhone, and BMWs, and is left with $10 in his wallet. Before retiring I worked with many of these people and understood their pecuniary behaviors quite well. Doing the math: $10 times 47 equals $470. Yup, makes sense to me. This is a total non-issue.

I remember compound interest back before the Savings and Loans went away, but where can you receive that kind of compound interest today? I remember back in the mid seventies 7% compounded daily saving accounts and mortgages at 8%. I thought the only ones with compound interest daily were the charges on credit card balances? Please let me know what bank I can receive compound interest on a daily or monthly timeline? I find it very unfortunate that the younger generation barely receives 1% on a savings account for their future retirement. Little incentive to save when the cost of living is at least double that. Of course financial investment companies can promise the world away to receive their money, the collapses of 2001 and 2008 can eliminate, and did, what they had invested. Of course the investment companies never lose their money and have a curious way of maintaining their wealth (ours). The lower middle class has not seen the raises in their wages as the upper middle class and above. I am still employed 40 hours a week and making the same as I was in 1985. This class divide is growing worse each year and the pensions that many enjoy will not be there for them. I pray for those that are younger that they will have as much as we have been blessed with.

Wish it was true but not... back in the day when just starting out making $20000 was good. Nowadays these kids seem to be starting with 6 figure salaries.

We were both 22. He made $2.05 an hour and I made $33 a week. We had dated and saved for four years and had the required down payment for a conventional loan on a brand new home.(12K) One car garage, three bedroom, basement, one bath.

How we managed was me cutting our hair, having one car, carefully planning to cook cheap meals and carrying lunch and not buying foolish things...even not buying some needed things. We did without and we were very careful with our money. We never got money from our folks.