We’re married – shouldn’t I look at “networth” as our family networth? I imagine many of the “networth” amounts listed on Rockstar Finance’s Blogger Networth Directory include total family networth. I choose to leave my independent.
Why? When one retires, she needs a specific amount of income to live life to her current standards. A partner may have different standards, and may not require to save as much. Personally, my goal has always been a minimum of $2M before I retire. Ideally I’ll see a number more like $3M-$5M. According to CNN’s Retirement Calculator I need $8M to retire. Yikes. Hubby “only” needs $3M.
For my net worth, if I put in $20k a year for 35 years, I get to $4.6M (with 5% YoY growth – I like to plan conservatively and be pleasantly surprised in the future ) – surely enough to retire comfortably on, but not enough to maintain my current standard of living (amazingly enough.) In order to get closet to my goal (well, $500k short), I have to put away $50,000 a year for the next 35 years.
More realistically, however, I won’t get to this magical $8M goal. But at my husband’s current savings rate, he’s less likely to hit $3M. However, his potential inheritance may help him out a bit, which is likely why he’s not too worried (single child of a mother who is so frugal she has lived at her parent’s home for free her entire life.) My parents are going to go bankrupt at the rate they’re spending (which is unfortunate, because they were actually quite well off for a while there…)
If we were to look at our net worth together, we’d be at about $570k. I’m certainly going to work with him on getting his investing act together for retirement, but I also know he’d be happy moving to the middle of nowhere and reading for the rest of his life, so his cost of living requirements will be much lower than mine in retirement.
How do you calculate your family’s net worth? Do you keep individual net worth or blend?