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To: Holly_P
"The book gives the following yardstick for measuring assets: You should have an amount equal to your age times your annual income, divided by 10. So, for example, a 40-year-old couple with $100,000 income should have net worth of $400,000 — not including home equity.

This is a good formula to use, and I have it in my net worth spread sheet. I am at two and a half times the resulting number.

I'm not cheap, and buy whatever I want. I think it is more important to have a high enough income to save substantial amounts while still living decently.
14 posted on 01/04/2004 1:53:11 PM PST by proxy_user
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To: proxy_user
"The book gives the following yardstick for measuring assets: You should have an amount equal to your age times your annual income, divided by 10. So, for example, a 40-year-old couple with $100,000 income should have net worth of $400,000 — not including home equity.

So this couple was making $100,000 since birth? Or they made a slowly increasing income and yet the formula is based on their most recent income?

If one worked full time from after college at 22yo to 40 they would have to save $22,000 per year. To bank $22,000 at 80's and 90's tax rates they would have had to gross $35,000 per year and bank every penny with zero expenses.

Didn't happen. In the world that I live in everybody has expenses and did not pop out of college in the early 80's making $35,000 per year.

92 posted on 01/04/2004 4:36:55 PM PST by Eaker (Place your clothes and weapons where you can find them in the dark. - Lazarus Long)
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