She earns <$60K/year and her 401(k) increased from $175K to $1 million+ in 12 years!
12 years of net worth history provides all the details!
Net Worth Stories:
Every Wednesday, we focus on a net worth “story” to help you peek inside someone’s personal finances and get the inside view that nobody usually talks about. This week we have a 55 year old woman earning between $50-$59K/ year. Her net worth history starts in 2012 with $349,016. The composition of her net worth in 2012 was 50% in retirement balances and ~22% in home equity.
She has over 140+ monthly net worth entries on networthshare.com! Many of the months have commentary explaining what was happening during that month.
April 2012 - age 43 - Net Worth $349,016
-Retirement accounts >50% of net worth
-69th percentile based upon her age/net worth
April 2024 - age 55 - Net Worth $1,382,286
-Retirement accounts >75% of net worth
-increased to 79th percentile based upon her age/net worth
So what changed from 2012 to 2024?
The Power of Compounding! Retirement Accounts increased from 50% of net worth to >75% of net worth
She experienced 17% & 18% declines in her 401(k) but balances rebounded and now recently crossed $1M in retirement balances in 2024
2020 - Peaked at $523,693 in Dec 2019 vs low $435,115 in Mar 2020 ($88K loss - 17% down)
2022 - Peaked at $821,344M in Jan 2022 vs low $673,218 in Sept 2022 ($148K loss - 18% down)
Now back at all-time highs in April 2024 - $1,046,728 (75% of net worth)
Net Worth Over Time (2012-2024)
If you’re not already, start tracking your net worth!
If you would like to see more financial information on the individual discussed today, you can click here username: MinnesotaPaintLady and continue to follow her growth in retirement savings. You can also join thousands who are tracking their net worth on networthshare.com and be encouraged monthly by a likeminded community. Also, subscribe to this weekly Net Worth Stories newsletter for real life examples (net worth stories like this and other useful tips to create the life you want!)
NetworthShare helps you calculate net worth, and track it online. You can publicize your net worth anonymously (or keep it private), compare it to others & see where you stack up. There are interactive charts that let you slice & dice community data (like those included in this newsletter).
It's also a community of financially like-minded people where you can ask questions, get advice, and share financial stories. You are able to search by your occupation, age range, education level, or salary range and see where you rank!
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