How Much Should My Net Worth Or Savings Be Based On Income?

Mallorca Sunset Net WorthIf you’ve been making $500,000 a year for a decade as a 40 year old but only have a $1 million net worth, you’re probably a donkey with some serious financial issues. If you’re making $80,000 as a 30 year old but have a $500,000 net worth I’d classify you as a hero who is on their way to bubbles and unicorns!

I’ve written about The Average Net Worth For The Above Average Person that provides charts on where highly motivated people who want to achieve financial independence should be. The only problem with my analysis is that it doesn’t tie income levels specifically in the charts. This post will bind the inextricably important link between income and wealth to ensure as high a chance of financial freedom as possible.

To create a good net worth guide based on income can be very tricky based on variables such as how long someone has been making X income, the return on investment, and the state of the economy. Hence, a more conservative assumption is to replace net worth with savings. Let’s first understand the current state of the world and break down our assumptions.

FINANCIAL ASSUMPTIONS FOR NET WORTH / SAVINGS TO INCOME RATIO

* Low interest rate environment. Interest rates have been coming down since the 1980s and have reached a level where it’s harder to get much lower. The Fed Funds rate is at 0.25% and the 10-year yield hit a low of around 1.4% in 2012. The Fed has already telegraphed they will begin to raise the Fed Funds rate if the national unemployment level gets under 6.5%. After all, the Fed’s job is to keep inflation in check and maximize employment.

Low interest rates mean low risk free returns. This is terrible for savers who are conservative in their investment strategy, but conservative is what we should all be once we’ve built up a large enough financial nut that spits out a perpetuity of income. The S&P 500 is yielding roughly 2% and a basket of dividend focused stocks will probably get you around 3%. As a result, please eliminate the commonly held 4% withdrawal rule and choose something closer to 2%. Remember, the ideal withdrawal rate in retirement does not touch principal.

* Life expectancy extends to 85 for men, 90 for women. We don’t know whether we’ll live longer, but we should conservatively assume than the median life expectancy of 78 currently is too low. The longer we assume we’ll live, the more money we need to have in retirement. It’s better to end up with too much than too little because we can always live a will to give our money away to those in need.

* Retirement age no later than 65. It would be a crying shame to work for 43 years after college and only live until age 78 wouldn’t it? Age 65 is the maximum age for work in my net worth by income model. Ideally, we all reach financial independence much sooner and experience the luxury of the “one more year syndrome.

* Savings rate is at least 20% with the ultimate goal of saving 50%. You can’t grow your savings and investments aggressively without having a commensurate savings percentage. The goal is to build your financial nut so large that it starts saving more for you than you can save on your own. Ideally everybody should strive to save 50% of their after tax income or more by age 50. The easiest way for most people is to see if they can just save one of their bi-weekly paychecks every month while maximizing their pre-tax retirement plans. Here is a great chart on how much savings you should aim for by age using the expense coverage ratio concept.

* There are no income producing breaks. This is a difficult assumption because so many of us will take time off between jobs to go travel, spend time with family, or start a business. I’m a prime example who has extricated himself out of the work force to give a go at online entrepreneurship. My absolute savings amount per year is much lower, but my savings percentage continues to be high as I adjust my lifestyle and spending habits. Only a small minority of people take work breaks for longer than two years.

* The trend is up and to the right for economic growth. There have always been gains in any 20 year period. With a more collaborative world and the advent of the internet, productivity gains and economic growth should continue. Surely we will see multi-year bear markets again as that is the nature of a cyclical economy. But structurally, the long term trajectory is higher thanks to demographics, inflation, technology, and productivity. All this said, I don’t assume any returns except for end where I allow for +/- 25% changes to the final ratio.

NET WORTH OR SAVINGS BY INCOME RATIO CHART

I was originally going to make this chart very complicated by including an after tax savings rate column, growth rate percentages, effective tax rate assumptions and so forth. Instead, I’ve decided to simplify the chart to highlight a net worth multiple of income goal by age in five year increments. You will also see hypothetical net worth (savings) amounts by age based on $60,000, $100,000, and $200,000 income levels.

Net Worth To Income Ratio Chart

Some Takeaways:

1) Focus On The Multiples: The chart is designed to work on any income level above the poverty line. The examples of $60,000, $100,000, and $200,000 income levels and their respective amounts are there to provide visual guidance of what could be. If you’re used to making $60,000 a year for your working career, then you should be use to making a similar or less amount during retirement. Same goes for those who make more.

2) Calculate Your Own Multiples First. It’s better to be conservative and calculate your individual target net worth in case something happens to your relationship or in the event you never find anybody. If you are married, then simply calculate your net worth targets based on your combined income.

3) Each Persons Lifestyle Expenses Are Different: This chart isn’t a one size fits all net worth to income chart. Some people are happy to live very spartanly in the middle of nowhere making it unnecessary for them to have such high multiples. My chart is intended for folks who want to live above average lifestyles without having to worry much about running out of money living in more expensive cities. You may shoot for a higher multiples as well.

4) You Can Expedite Your Net Worth: By simply increasing your savings amounts, making more money, and investing in profitable assets you have the power to increase your net worth faster and retire earlier if you choose. Let’s say you make $60,000 a year and have a target of $1.2 million in net worth by age 60. According to the chart, if you can find some way to increase your income to $200,000 and maintain your savings/investing habits, you will save 20 years of work and retire by 40. Easier said than done of course, but the possibilities are there.

5) The Exit Multiple Target: Once you hit about 15X your annual gross income as your net worth or savings figure, you can seriously start thinking about retiring or doing something else more enjoyable. You will have to contend with various other assumptions including whether you include your primary residence in your net worth, whether you still have a mortgage, and if you have alternative streams of income. My hope is that everybody works on passive income streams during their wealth accumulation phase so they don’t need as much or any income in retirement.

CONCLUSION

It’s very important to have some idea of target net worth figures because it’s not so much what you earn, but what you save. There are countless stories of people making huge salaries only to piss it away on frivolous things and end up with very little to nothing. This is why I highly encourage everyone to have around 30% of their net worth in risk free assets just in case everything goes to hell.

Continue to actively track your net worth progress a couple times a year. Targets will help you adjust your finances accordingly and increase your chances of reaching your goals much faster than others who do not bother. You should also consider calculating your net worth by your realistic living expenses to come full circle.

While I was working I had a target of reaching a net worth equal to 20X a sustainable income by age 40. Instead, I left the workforce with a 15X multiple at 34 because I figured out how to raise my multiple to 18X in a matter of months by negotiating a severance package after 11 consecutive years at one company. I’m still 2X multiples short of my 20X target, but given the flexibility to lower my cost of living and the potential to make money through alternative means I’ll be alright. One of the things you’ll discover once you’re free is how many more opportunities come to light!

Recommendation To Build Your Net Worth

The best way to build wealth is to get a handle on your finances by signing up with Personal Capital. They are a free online tool which aggregates all your financial accounts on their Dashboard so you can see where you can optimize. Before Personal Capital, I had to log into eight different systems to track 28 different accounts (brokerage, multiple banks, 401K, etc) to track my finances. Now, I can just log into Personal Capital to see how my stock accounts are doing, how my net worth is progressing, and where my spending is going.

One of their best tools is the 401K Fee Analyzer which has helped me save over $1,700 in annual portfolio fees I had no idea I was paying. You just click on the Investment Tab and run your portfolio through their fee analyzer with one click of the button. Their Investment Checkup tool is also great because it graphically shows whether your investment portfolios are property allocated based on your risk profile. There is no better free online tool that has helped me stay on top of my finances more than Personal Capital. It’s important to aggregate all your accounts to get an entire overview of your net worth to make proper changes. It only takes a minute to sign up.

Updated as of 9/2/2014

Regards,

Sam

 

Sam started Financial Samurai in 2009 during the depths of the financial crisis as a way to make sense of chaos. After 13 years working on Wall Street, Sam decided to retire in 2012 to utilize everything he learned in business school to focus on online entrepreneurship.

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Comments

  1. says

    I like basing it off income, it makes it far more applicable across the income range. Personally I was always found the reccomended net worth chart hard to relate to without income included.

    Over the last 6 years since graduating, my household income has roughly tripled (mine has doubled plus I married someone who makes up the other third). The majority of the income increase has been in the last 2 years. Net worth is around 1.3x current yearly salary, or about 2x salary were it the same as it was 12 months ago. Savings rate is around 50% so that multiplier should climb fairly quick.

    • says

      Definitely my goal to provide an alternative way for users to track net worth progress.

      Congrats on the doubling of income! Now it’s about figuring out what the sustainable ideal income is and use that as a variable in the multiple. Fun with numbers!

    • says

      Actually, being a saver and having no consumer debt are core values in this table.
      Net worth subtracts out debt anyway, so even if you have a low salary, it means you are able to live on less so the chart should be applicable.

  2. says

    I have always liked to think about these types of numbers in terms of expenses rather than income. How far is this savings going to get me at this rate of spending? We won’t start considering ourselves FI until we hit non-primary residence (ie consumable) net worth of about 1.5mm or so. Though if we find ourselves happily living on a lot less, or needing a lot more $, that could definitely change

    • says

      Looking at things in terms of a multiple of expenses is the more aggressive way since expenses are lower than income as we make more than we spend. I encourage folks to look at a multiple of income for NW targets to be more conservative.

      $1.5 Mik definitely sounds nice, but it depends on the income.

    • says

      I like looking at the multiple of expense too. It’s just more realistic. If we look at multiple of income, then it’s much harder for people who save a large % of their income to hit 24x.
      We had about 25x expense when I left my job. We live a bit more frugally, but we can adjust if I make more money later on.
      I like your multiple in general.

      • says

        Another reason to look at income is b/c expenses is a derivative of income i.e. income is more certain than expenses, which can be easily adjusted up or down.

        It’s much more conservative to target income multiples and THEN adjust your expenses. There’s a higher chance you’ll end up with more, rather than less.

        I would encourage folks to calculate both.

  3. says

    “…Once you hit about 15X your annual gross income as your net worth or savings figure, you can seriously start thinking about retiring or doing something else more enjoyable…”

    I used FireCALC to help determine if I had enough to retire. I think it is a great tool to create lost of “what if” scenarios.

  4. Lucas says

    FYI – the table is pretty hard to read. viewed from Chrome on Win 7 directly and through feedly reader and both were difficult. I agree that the multiples way of tracking networth is much better measure of financial choices then raw numbers.

    Personal i think these three numbers give you a pretty good idea of where someone is at without having to know actual salary or networth.

    1) Networth/Annual Income – tells you how effecitve they are at savings
    2) Networth/Annual Expenses (after Tax) – tells you how efficiently they live when compared to the networth/income. Also tells you whether they are early retirement candidates :-)
    3) Debt/Networth – tells you how comfortable they are using debt to either finance lifestyle or invest with (when compared with above numbers).

    Personal numbers for me (30) are:
    Networth/Income = 5
    Networth/Expenses = 17
    Debt/Networth = 0.06 (almost 0 )

  5. says

    Although I do not think about savings this way, it is not a bad guide. My savings rate is roughly 35%, but my children are grown and I already accumulated my magic number. If I were right out of college I would use this as a guide to accumulate wealth. I find a 50% savings rate as a little extreme unless you are earning a lot more than the typical salaries, but not for very long. It is too extreme!

    • says

      Larry, I really don’t think you should be saving so much anymore given you mentioned you are findeoendent and in your mid 60s. Why not spend 100% of all income and live it up since you still have your financial but and real estate assets?

      • says

        I don’t feel deprived at all! Saving is definitely a habit which is difficult to break. I think I will be forced to change in retirement. I am starting to think seriously about changing my retirement date to either June 2016 or December 2018. In other words, retire a year earlier than planned. I think I will get a little bit more serious/specific about what I will do when I retire.

  6. Babets says

    It is too generic to come up with a figure that make sense…
    It just depend too much on where you are living.
    For example, if you have 1 mil $ and decide to live in Philippines then you probably can live comfortably for the rest of your life.
    1 mil $ in NY does not take you very far.
    I have 4x my income as net worth at 40ish but at this rate of savings I will have 8 to 10 X by 50.
    This puts me at the low end of your calculation on this post but way above the above average net worth of the old post you did. I think on this post you might be a bit over aggressive.
    BTW all I did in my life has been saving or putting money in homes and home renovations…
    Good luck to all

    • says

      Each Persons Lifestyle Expenses Are Different: This chart isn’t a one size fits all net worth to income chart. Some people are happy to live very spartanly in the middle of nowhere making it unnecessary for them to have such high multiples. My chart is intended for folks who want to live above average lifestyles without having to worry much about running out of money living in more expensive cities. You may shoot for a higher multiples as well.

      Folks looking for answers need to start somewhere. You can play with the different variables to arrive to a combo of desired retirement age or wealth amount using my table.

  7. Theresa says

    This is a very insightful post. I don’t really know where I fall in terms of my true net worth, but this has given me some food for thought. Thanks.

    • says

      I would be very afraid to retire if at age 65 I only had 8x my income as net worth! In fact, I might paradoxically hope I don’t live too long so I don’t run out of money. By then, I would also be logically voting for bigger and bigger government to fleece the young to take care of us older folks as we are doing so now. The cycle continues! Hands off our Social Security!

  8. says

    I always plan to keep a stream of income coming in, so my multiple will be lower than the chart may indicate.

    The problem is I don’t know what income streams will be available to me at that time.

    When it comes down to being financially prepared for retirement, I’ll know when I know.

    • says

      Having a stream of income (money strength) is definitely the way to go as a buffer for one’s savings/investments.

      I think you’ll know what the streams of income will be well before you finally retire. They will become as clear as day, and you might get surprised with more.

  9. getagrip says

    I feel this is really an ideal chart of the optimal scenario and very unreachable by many, either by choice or circumstances. For example, the assumption of an immediate job post graduation (I graduated into a tough regional economy and didn’t get a full time job for over a year), the ability to eventually save 50% towards the single goal of financial independance (what about college, a home, other life goals), and finally it assumes that I want to die with my savings principal intact so it can be passed onto my heirs. Heirs, who by the way, will be in their 50-60’s when I croak in my 80’s and really should not be counting on the old fart to pass on for their own retirements.

    That said, it never hurts to have something to strive for as long as you understand your own circumstances in comparison and focus on what you’re doing, not what some chart or formula says you ought to have or have done.

    • says

      Things always seem unreachable until they are thoroughly achieved. If one doesn’t want to follow the age column, they can follow the years of work column. They can also adjust based on income levels to see what might be.

      As I’ve written in the post, each person’s lifestyle expenses are different. Adjust accordingly. Only you will know what’s best.

  10. says

    Just curious why you chose the multiples that you did? How did you derive them, or was it simply a very nice way to roughly see where you should try to aim for in NW?

    I guess you have to give some kind of target but I was just thinking what if the person goes from an income of $60k when they’re 35, to having an income of $100k when they’re 40 and thinking they’re incredibly far away from the $600k when they wer only having to target $240k just a year or so before.

    • says

      By the assumptions in the post. Namely 20-50% savings rates and the ideal withdrawal rate of 0%, with room up to 3%.

      For your question, the person has to figure out what is the average sustainable income level they are comfortable earning and then multiply by the corresponding multiple to see if they are on track. Perhaps in your example the average income is therefore $80,000, and therefore s/he should shoot for $1.6 million if they want to retire by age 60, or around $960,000 if they want to retire at age 50. Dynamic!

  11. says

    Finally, a chart where I’m ahead of the game! On a sad note, most of our progress has been over the past few years. If I’d been aggressive throughout, we could be retired by now, but live and learn.

  12. says

    I’m shooting for 100-100-30. $100k net worth, $100k gross bye age 30. I’d be about $20k behind your chart shown above.

    I love tracking this stuff, though. You should pitch this to the SS administration to show people where they SHOULD be at to ease the burned on taxpayer assistance :)

  13. says

    I’m doing pretty well based on your chart. But I have a lonht way to go to get to 15X in order to retire and kick back! I just gotta keep on truckin and I’ll get there someday. I would like to step away from my primary job in a few years but still work to have income coming in. It would just be nice to work a more flexible schedule on my own terms.

  14. says

    If I add in the value of our paid for house in our net worth, then my wife and I are at the correct point for 55 year olds. No telling where the house value will be in 10 years. Can’t control investment earnings, either. We can only control our savings and asset allocation and hope things go in the direction we want.

  15. says

    Luckily my wife and I are doing quite well according to your table. We’re doing especially well since we’re also living a more “spartan lifestyle”. We hope to be FI in just a few short years!

  16. says

    Using a factor of income is definitely a solid way of calculating net worth however there will always be exceptions. My gross income increased dramatically around 3 months ago when I changed jobs – based on this my net worth should have instantly increased dramatically. Perhaps using a 3 or 5 year moving average of income is more suitable? Additionally I like to then look at how long my net worth would cover my living expenses – $1m of net worth for someone spending 100k per year isn’t as good as someone with a net worth of 500k only spending 30k per year – their money will last them longer.

  17. nbsdmp says

    So maybe I missed it, you mention that one assumption is retirement no later than 65 years old, but at what point on the chart are you saying a person is able to actually retire? My assumption is if you are the $200k year camp you are on track for a comfortable retirement at 65 if you’ve got a $1.2 net worth? Is there some point prior to that 65 year age were you feel the hypothetical person has gone over the hump and can retire at anytime?

    • says

      That’s the beauty of personal finance. It depends on what you want to retire with! Right now, I’m happy to live off about $85,000 – $100,000 a year. Anything more is gravy. So folks need to calculate their passive income streams and their financial nut based off their desired income stream or vice versa.

      • nbsdmp says

        O.k. gotcha, that is what I thought you were saying. I honestly think life is pretty damn cheap to live a pretty amazing lifestyle if you have some common sense. I do think though that some people do a net worth calculation and see it $1m + then allow their lifestyle to inflate…it is just human nature. Great article though, I like how you are willing to throw out real #’s instead of arbitrarily dancing around with percentages & not afraid to make people say “whoa, I better get serious about saving”.

        • says

          Thanks.

          I would like readers to focus on multiples since everybody earns a different amount and has different ideas of what a comfortable retirement lifestyle entails.

          However, it helps to provide real income numbers with real corresponding net worth figures. Folks shouldn’t be intimidated with numbers as these numbers are quite achievable!

  18. Renee says

    My husband and I cannot agree on a savings plan. At ages 46 and 51, we have two pensions that exceed the six figure mark, plus he works and earns a very nice living. We have additional investment funds and a couple houses, one of which is rented. His thought is that we should enjoy our money and stop focusing so much on saving, and my thought is that I’d like to find a happy medium. If you consider our pensions as part of our net worth and add that amount to our current net worth (investments, house, etc), I believe we are at the top of your chart. Do you have any advice/thoughts about a savings plan that will make us both happy (perhaps a reasonable percentage?) and also help us secure a strong financial future?

    • says

      If you have lifelong pensions already at your younge age that are combined or each over six figures, I would surely spend the large majority of it every single month. Instead of worrying about saving, I would worry about health and do things to try and live as long and healthy a life as possible!

  19. says

    Totally agree… particularly about the donkeys and unicorns…

    Your chart makes sense. I seem to be a little bit ahead of where I should be, which is good. But nowhere here 15x yet. I’ll get there…. the question is only when. OK – off to save some more money! :)

  20. says

    Thanks for the chart Sam! I was one of those kids that made the very poor decision to go to grad school, and graduated right as the recession hit, so I was a couple years behind in starting, but I’m pleased to say I’ve caught up pretty quickly and made some really decent progress! My wife and I don’t have huge salaries, but wemanage to save aabout 60% of our income between long and short term savings. I appreciate the ability to see how the exit strategy multiple works in action.

  21. PennyPincher says

    Hi. I am at the 13 years worked mark (a little bit older than 35, but still). Based on cash savings, and current values for home equity and investment stocks, I have a net worth of about $310K (average income of $100K). I am saving about 40% of my income currently.
    That amount excludes my pension fund entitlements. I am not sure how to account for that since it is preserved until I am 60.

  22. Carl Kramer says

    Dear Samurai: 2013 was quite a year for me: Turned 60, eligible to retire, last kid’s college tuition paid off, home mortgage paid off. My net worth is well above the norms for my age. Now that I have absolutely no debt, I feel empowered and liberated! I’m working just for me and intend to keep doing so until I’m at least 65 (I’m always placed a premium on health and my doctor assures me I can do it). Thanks for reminding us that debt and the inability to plan for one’s financial future can enslave a person just as much as sex, drugs, gambling or pornography.

  23. dave says

    Very incomplete analysis. The whole concept of net worth in retirement is based on how much in assets you need to generate the income for your desired lifestyle. Not all income is derived from return on current investment.

    If you are one of the fortunate that have a defined pension plan the present net worth of your pension should be included in the chart above. Any Social Security you receive must be also be included.

  24. says

    I enjoyed your table because it’s nice to see quantifiable goals (even if they are heavily subjective) to have aims to strive for, but I’d love to see a revised version done as a sort of “goals for starting out” with objectives for your 20s with a column incorporating paying off student loan debt and one that doesn’t and with salaries such that reflect like the kid who went right into a decent law firm as a low level associate (granted, possibly with a lot more debt from law school) to the kid who flipped fries and did other entry level jobs because they couldn’t find one in their chosen career path to the person who straddled both worlds and managed to get on track by their mid/late 20s, but started out rocky.

  25. Ferron says

    Interesting read and comments. I always wonder about these things on both an absolute and relative scale. In evaluating your ratios I think you need to measure the different elements differently. Simply put, your net worth multiple should be based on a multiple of your expenses to help you evaluate when you can feel comfortable making a change. However, you should also monitor your savings rate as a percent of income because that helps you establish if you are doing a good job with saving your income or not.

    A third thing would be net worth growth rate. That will help you establish a combined measure of your savings rate, and the performance of how you are distributing your savings. Between those three things you should have all you need to know where you stand on a relative scale.

    Actually doing well still takes discipline.

  26. MJ says

    I’m 29. Living in Los Angeles, CA. Liquid cash of $730,000 (I’m hoping to reach the $800k mark at the end of this year). Hopefully on a positive track here. Net worth of around $1,000,000. Unfortunately, I don’t think this is the right way to go, and would like to start investing and diversifying. I have a sigfig and personal capital account but have never utilized their financial advisor. Any advise on where to start?

    • says

      MJ,

      That’s a lot of money. Is it all in liquid cash? No 401k investments or anything?

      If you are with PC already, might as well get a free consult. Tell them Sam Dogen from Financial Samurai sent you.

  27. Joe says

    Had net worth $50k in 2003, finishing training. Now net worth is $2.5M. Married, and our Medicare wages have averaged $225k over the last eleven years. Now our income is higher, $325k. We save 40% every year and are good investors. Our goal is $3.5M by age 45 and partial retirement at that time. We spend about $100k per year. Are we on track?

      • Rob says

        At that point we wouldn’t draw down but we wouldn’t save any more, just work enough to pay for current expenses and health care, and bump up my social security earnings a little more to definitely clear the second bend point in pia. So if we got a 3-5% real return on $3.5 million from age 40 to 60 we’d have $7 million real. Then from 60-70 we’d defer taking social security and convert to Roth accounts some of our pretax accounts til RMDs kicked in at age 70.5.

        One can always work more but at some point the whole point of being an early and aggressive saver was to be able to cut the strings a little earlier.

        Good website, nice take on the financial world.

  28. Andre says

    FS. Thanks for all of your fantastic articles. I have just recently developed an interest in investments and planning for retirement since I have gotten married and now have a little kiddo. We got married 4 years ago (I was 26, she was 20). Up until about a year and a half ago I was only making approximately 25k/year while going to school. My wife was making minimal income as a math tutor while going to school as well. I just got a fairly decent job making 52k/year now and she earns 46k/year at her new job. In the last 4 years we have accumulated 38k through our 401k’s and Roth IRA. We also have two houses, one with about 10k in equity and another with approx. 50k in equity. We only have about 7k in liquid cash. I want to begin CD laddering at some point because it seems like a great investment method; however, even someone with limited experience such as myself can draw the conclusion that this would be foolish at this time due to the pathetically low rates, so that option is on the backburner for now. I am contributing 15% of my income to my 401k (match of 100% up to 4%) and my wife contributes 6% with a 50% match up to 6%). She is planning on leaving her job next April to take care of our baby and work on her own blog as well as tutor for math again. I honestly don’t really know what I’m doing when it comes to investments but I know I am way behind when comparing where we are at currently to your various tables. How do you catch up? Is the CD option a good one now or should I wait? Do I contribute more to my 401k or max my Roth IRA? Also, is the PC consultation still free at this time? Thanks Sam.

  29. says

    Thanks for always making us examine something as basic as net worth from different angles: hadn’t thought about doing both income and expense comparisons.

    It bothers me when I can’t come to absolutely accurate numbers, especially in a net worth calculation. The DB pensions really annoy and throw me off. You’d recommended taking the annual pension total and dividing it by 3~5%. I can’t get myself to use the numbers, as even though they are fairly good rule of thumb values, they aren’t precisely accurate. I’d go with a number calculated by an actuary but I’m not going to waste money on an actuary to do the calculations. I suppose I’ll just continue using purely contributions when calculating in net worth month to month.

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