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Speaker 1: Let's talk about this article. In the US network generally

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Speaker 1: increases as people get older. Data shows that aging, time

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Speaker 1: and investing are the biggest drivers of wealth. Of course,

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Speaker 1: please consult with your own personal financial advisor. But this

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Speaker 1: article says that the average fifty something American is now

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Speaker 1: worth one point four million dollars. Do you remember when

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Speaker 1: you were little and you thought, wow, you're a millionaire?

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Speaker 2: Yeah, okay, does it mean so much anymore? This article,

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Speaker 2: in that headline is going to garner a lot of

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Speaker 2: attention and you're going to see this a lot in

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Speaker 2: the coming days about how the average, you know, person

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Speaker 2: who's fifty plus is worth one point four million dollars.

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Speaker 2: It is a very deceptive headline, and actually the article

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Speaker 2: calls itself out by the end of the article. So

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Speaker 2: if you remember when you were in grade school and

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Speaker 2: you were in math class and they talked about the average,

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Speaker 2: and there's three different ways to calculate the average, and

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Speaker 2: it can be the mean, the median, or the mode

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Speaker 2: and mean as you add them all up and divide

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Speaker 2: by the number, and that's how you get it. The

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Speaker 2: median is half or more and half or less, and

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Speaker 2: the mode is you know, the number of times that

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Speaker 2: specific number comes up. When you talk about financial information,

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Speaker 2: everybody always uses the median. We talk about the median

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Speaker 2: home price in the United States or here in the

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Speaker 2: state of Indiana. That's the one, and it gives you

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Speaker 2: a much clearer picture of where things sit.

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Speaker 1: Well.

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Speaker 2: When they wrote the headline of this article, they used

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Speaker 2: the mean, which means they add up everybody's net worth

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Speaker 2: and then they divide by the number of people. But

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Speaker 2: the problem with that is super ultra high net worth

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Speaker 2: individuals like Elon Musk and Jeff Bezos, who are each

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Speaker 2: almost worth a trillion dollars, completely throw that number way off,

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Speaker 2: and so you get down to the bottom in the

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Speaker 2: article and they're like, oh, okay, but the median savings

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Speaker 2: for fifty people that are fifty once is more like

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Speaker 2: what one hundred and forty two thousand or something.

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Speaker 1: Well, they did break it down for age group. They

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Speaker 1: say twenty somethings, the average is one hundred and twenty

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Speaker 1: seven thousand, seven hundred and thirty dollars, but the median

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Speaker 1: is six thousand, six hundred and eighty nine. They say

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Speaker 1: many twenty somethings start out with student loan debt, car loans,

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Speaker 1: credit card debt, and the goal is to get back

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Speaker 1: to zero. Financially. For thirty somethings, the average is three

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Speaker 1: hundred and twenty one thousand, five hundred and forty nine dollars,

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Speaker 1: but the median is twenty four thousand, five hundred eight dollars,

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Speaker 1: and that.

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Speaker 2: Those are massive differences, not huge differences.

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Speaker 1: For thirty somethings, their challenges include childcare costs, higher living expenses,

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Speaker 1: delayed home ownership. I now saw that the first time

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Speaker 1: home buyer is now forty years old, the oldest it's

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Speaker 1: ever been. They also say that career growth and beginning

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Speaker 1: your retirement savings plays into that. Now, for forty somethings,

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Speaker 1: the average is seven hundred seventy thousand dollars eight hundred

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Speaker 1: and ninety two, but the median seventy six, four hundred

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Speaker 1: and seventy nine dollars. So find a difference.

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Speaker 2: If you see that headline and you see that, you

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Speaker 2: know it says that the average net worth of an

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Speaker 2: individual fifty year older is one point four million dollars,

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Speaker 2: And you think to yourself, my gosh, I'm over fifty

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Speaker 2: my networth and anywhere near one point four million settle down,

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Speaker 2: You're not that far behind. It's okay. When it comes

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Speaker 2: to the median net worth of somebody over fifty, it's

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Speaker 2: much closer to one hundred and fifty.

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Speaker 1: So for the forty somethings, it's often their peak earning years.

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Speaker 1: But that's when the childcare costs start to decline, but

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Speaker 1: you're still financially stretched. Many families are fifty somethings. Let's

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Speaker 1: get to this group, okay, which is what the article

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Speaker 1: was based on. They say the average is one point

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Speaker 1: four million dollars, but the median one hundred and ninety

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Speaker 1: two thousand, nine hundred and sixty four.

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Speaker 2: Yeah, so that that's going to be much more of

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Speaker 2: your typical average person. And again, because the way they

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Speaker 2: calculated that average of one point four million dollars, all

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Speaker 2: the super super ultra uber rich people get thrown into

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Speaker 2: that calculation and throw the curve. It's me. It's like me,

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Speaker 2: remember when you would get graded on a curve in

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Speaker 2: school and you had the two or three somebody really smart,

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Speaker 2: two or three smart kids in the class ruin the

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Speaker 2: curve for everybody else. That's what they did to make

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Speaker 2: this headline seem shocking and unbelievable. It's because it is.

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Speaker 2: So the average person doesn't have a net worth at

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Speaker 2: one point four million million, it's more like one hundred

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Speaker 2: and ninety one hundred ninety two.

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Speaker 1: Yeah, and home equity becomes the largest asset as you

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Speaker 1: age even further beyond fifty sixty somethings, they say their

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Speaker 1: average net worth is one point six million. Well what's

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Speaker 1: the real number, two hundred and ninety thousand, much closer. Yeah,

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Speaker 1: and then for seventy somethings it's one point five million,

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Speaker 1: with the median at two hundred and thirty two thousand.

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Speaker 1: And that's actually when your net worth, they claim, starts

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Speaker 1: to decline, most likely because you're paying healthcare costs and

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Speaker 1: dipping into retirement.

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Speaker 2: Well, yeah, you're not working anymore. Most people in their

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Speaker 2: seventies are retired. You probably can't say most people in

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Speaker 2: their sixties are retired. And so you're obviously working and

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Speaker 2: getting an income. You're not living off your savings, and

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Speaker 2: by the time you get into your seventies, most people

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Speaker 2: are living off of their savings, and so you're going

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Speaker 2: to see that savings number go down a little bit.