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You should probably look at "net worth" with a normalization for age as it would be unfair to compare the 20-40 range vs the 60-80 range. Taking on debt vs pay
by boringg 4y ago
You should probably look at "net worth" with a normalization for age as it would be unfair to compare the 20-40 range vs the 60-80 range. Taking on debt vs paying off debt.
Now to be fair I am not sure you can normalize this as we don't know what the future holds but it's worth noting for anyone sub 30 years old.
- hwillis 4y ago> unfair to compare the 20-40 range vs the 60-80 range. No, you want the skew. The goal is to capture the people who own 90% of stock, so you do want wealth regardless of age. It would be more accurate to have some measure of stock ownership to income, but I think that would not be as useful. Stock ownership probably does just track closely with age, since you store up all these assets to live off during retirement. Most young people will not own 1M+ in retirement and investment funds. Even high income people will instead spend that money on a house etc.