I was reviewing some interesting facts from the Federal Reserve’s 2010 Survey of Consumer Finances. Feel free to add your observations. Here are some of mine:
- As expected, the high net worth of a few skew averages much higher. Notice the median net worth and average net worth where the age of the head is less than 35 years old – $9.3 vs. $65.3 thousand respectively.
- Also notice mean net worth trending downward after the age cohort 55-64. I would expect this to be due to retirees using their retirement funds. However, I also suspect this only part of the story. Noticing that the median net worth continues to increase, I would guess there is some effective tax planning amongst the high net worth individuals.
- Also as expected, a college degree weighs heavily on your ability to accumulate high-net worth.
- Consistent with other wealth studies I have seen, the self-employed have a much higher net worth compared to those working for someone else.
- Notice the net worth differences between those owning their home vs. renting. Homeowners have a mean net worth of $713,400 compared to renters with only an average net worth of $57,200. While significant, this statistic could have many different stories as this is life stage issue as well (i.e. most rent before purchasing their home).
Highly recommend checking it out. It’s a great source for family financial data.