Money Guy Show – Average Net Worth By Age! (2026 Edition)

Hosts: Brian Preston & Bo Hanson
Date: January 9, 2026

Episode Overview

In this annual favorite, Brian and Bo break down the average net worth by age for 2026, using the latest data to help listeners assess where they stand and establish realistic, actionable wealth-building targets. More importantly, they differentiate between surface-level benchmarks (like total net worth including home equity) and the practical, “investable” net worth that actually secures your financial future. By exploring strategies and mindsets by decade, this episode aims to move you beyond comparison and help you master the habits and tactics that make your assets work for you—so you can reach financial independence and peace of mind, no matter your starting point.

Key Discussion Points & Insights

1. Understanding Net Worth (00:20–04:21)

• Definition: Net worth = What you own (assets) minus what you owe (liabilities).

• Assets:

  • Cash (checking, savings, money market)
  • Investments: Brokerage (after-tax), 401(k)/403(b)/SEP (tax-deferred), Roth/Health Savings Account (tax-free)
  • Illiquid assets: Business interests, real estate

• Primary Residence Valuation:

  • Money Guy Method: Use “lower of cost or market value,” i.e., what you paid plus improvements, not inflated current value.
  • Quote (01:50):

    “You don’t think, oh my gosh, I’m a millionaire. No, you’re a person that lives in a million-dollar house, but you still need to have liquid assets.” – Brian

• Liabilities:

  • Consumer debt (credit cards, personal loans)
  • Auto loans, student loans
  • Mortgages (primary, HELOCs)

• Getting Started:

  • Free net worth template: moneyguy.com/resources
  • Paid net worth dashboard at learn.moneyguy.com

2. What Should My Net Worth Be? (04:21–09:54)

• National Data Cautions:

  • Median net worth by age (including home equity):
    • 20s: $6,700
    • 30s: $24,000
    • 40s: $76,000
    • 50s: $192,000
    • 60s: $290,000
      (Empower, Oct 2025)

• Limitations:

  • Averages inflated by the wealthy; median is more relatable but still includes home equity.

• Better Focus:

  • Investable net worth—assets you can actually use to support financial independence.
  • Quote (05:57):

    “It’s not just what your net worth is. It’s what your investable net worth is. This is the part that you can actually use.” – Brian

• Industry Benchmarks (Fidelity):

  • 1x income by 30, 3x by 40, 6x by 50, 10x by 65
  • But: 10x may fall short; 4% safe withdrawal rule = needing 25x income.

• Money Guy Target:

  • Seek to replace 80% of income; thus, aim for 20x annual income in liquid/investable assets by 65.
  • Milestones:
    • 1x by 30
    • 3x by 40
    • 6.5x by 50
    • 13.7x by 60
    • 20x by 65

• Quote (08:16):

  “If you had $100,000 income and you had 10 times that, you’d have a million dollars. At a 4% withdrawal, that’s only $40,000. There’s a big discrepancy between $40,000 and $100,000.” – Bo

3. Decade-By-Decade: Mindset, Habits, and Benchmarks

A. Your 20s: Just Do Something (10:01–18:21)

• Mindset:

  • “Am I doing anything?”: Save anything at all—something is infinitely better than nothing.
  • Time is your greatest asset—compound growth does the heavy lifting.

• Three Ingredients for Wealth: Time, Discipline, Margin (live on less than you make)

• Actionable Example:

  • Save 15% of $50,000 salary starting at 22, increase by 1% each year:
    • By 30, could have $97k saved, growing to ~$140k with market returns.
    • Just leaving that $137k to compound: Could grow to $2.2M by age 65 without further contributions. (See 15:26)
  • Quote (15:26):

    “All we did was extend the time from 30 to age 65, but let compounding growth do its magical thing. That $137,000… turned into $2.2 million.” – Brian

• Targets:

  • By 30: Save at least 1x your annual income in investable assets
    • Median income: $58,500 → Target portfolio: $58,500
    • Median American in 20s has only $21,000

• Tools:

  • “Power of 1%” and “Wealth Multiplier” calculators at moneyguy.com/resources.

B. Your 30s: Do the Right Things (18:21–25:55)

• Mindset:

  • “Am I now doing the right things?”: Move from “something” to “intentional and growing.”
  • Life is likely hectic (career, family, home); focus on maximizing every financial choice.

• Key Habits:

  • Aim for simplicity through automation (automate savings and investments).
  • “Set it and forget it” with good habits to reduce decision fatigue and errors.

• Actionable Benchmark:

  • Save 25% of your gross income—the earlier you hit this, the more flexibility and options you gain.
  • If starting 25% savings in your 20s: FI possible by 46; in 30s: FI by ~59; even if you start later, you still win by saving more or working longer.
  • Quote (22:03):

    “Money is nothing more than a tool that allows us to accomplish the goals that we have. But the earlier we're able to wield money well, the more flexibility we give ourselves.” – Bo

• Targets:

  • By 40: 3x annual income in investable assets
    • Median income: $86,000 → Target portfolio: $258,000
    • Median American in 30s has only $36,000

C. Your 40s: Have I Done Enough? (25:55–34:38)

• Mindset:

  • “Have I done enough?”: Time to check if you’re ahead, on track, or need to catch up.
  • This is a financial fork in the road: dial back savings if on track, or ramp up if needed.

• Optimization Focus:

  • Master the Three-Bucket Strategy for tax efficiency:

    • Tax-Free: Roth, HSA (growth & withdrawals tax-free)
    • Tax-Deferred: 401(k), IRA (taxed on withdrawal)
    • Taxable: Brokerage (capital gains benefit, liquidity)
    • Quote (27:22):

      “You want to make sure you understand how these strategies work so you can maximize the opportunity.” – Brian

  • Practical Example (29:23–32:19):

    • “Inefficient Ivan” (saves all pre-tax) vs. “Manny the Mutant” (diversifies across buckets):
      • Ivan: $200k retirement income, pays $25,500 in taxes, spends $174k/year
      • Manny: Same income, but pays only $4,000 in taxes, spends $196k/year
    • Quote (31:36):

      “Just by thinking about the tax buckets, Manny is able to spend $20,000 a year more than Ivan because he planned a little bit ahead.” – Bo

• Targets:

  • By 50: 6.4x annual income in investable assets
    • Median income: $92,000 → Target portfolio: $588,000
    • Median American in 40s has just $60,000
  • Note: Most millionaires cross $1M net worth between ages 47–49, typically after 28 years of saving/investing.

D. Your 50s: What’s Next? (34:38–39:34)

• Mindset:

  • “What am I doing next?”: Shift from accumulation to planning for income and consumption.
  • It’s essential to develop a “glide path” for investment allocation—reduce equity risk gradually, don’t flip the switch all at once.
  • Quote (35:35):

    “It took you a while to build up these assets. You’re probably going to also want to have a glide path back down... so you don’t get caught in that desperate situation.” – Brian

• Key Focus:

  • Highly individualized strategies: specialist advice and tools become critical.
  • “Know Your Number” tool (learn.moneyguy.com) helps define your retirement finish line and how close you are.
  • Reconsider the default use of target-date funds if your portfolio is seven figures or more.
  • Assess risk tolerance (emotion) vs. risk capacity (how much loss your plan can actually absorb near retirement).

• Targets:

  • By 60: 13.7x annual income in investable assets

    • Median income: $82,000 (50s) → Target portfolio: $1.1M
    • Median American in 50s: just $74,000 in investable assets

  • Quote (39:34):

    “You’ve reached blown past the bowling point. You are now the CEO of a seven-figure enterprise. You don’t know where your blind spots are. You don’t even know what $1.1 million really means for you in the future.” – Brian

Memorable Quotes (with Timestamps)

• “You don’t think, oh my gosh, I’m a millionaire. No, you’re a person that lives in a million-dollar house, but you still need to have liquid assets.” – Brian (01:50)
• “It’s not just what your net worth is. It’s what your investable net worth is.” – Brian (05:57)
• “If you had $100,000 income and you had 10 times that, you’d have a million dollars. At a 4% withdrawal, that’s only $40,000.” – Bo (08:01)
• “If you’re in your 20s right now... you literally are a billionaire of time.” – Brian (10:52)
• “That $137,000… turned into $2.2 million.” – Brian (15:26)
• “Money is nothing more than a tool... the earlier we're able to wield money well, the more flexibility we give ourselves.” – Bo (22:03)
• “Just by thinking about the tax buckets, Manny is able to spend $20,000 a year more than Ivan because he planned a little bit ahead.” – Bo (31:36)
• “You are now the CEO of a seven-figure enterprise. You don’t know where your blind spots are. You don’t even know what $1.1 million really means for you in the future.” – Brian (39:34)

Important Timestamps

• 00:20: What is net worth?
• 04:21: Setting net worth benchmarks by age
• 06:15: Median net worth statistics by age (national data)
• 09:54: Introduction of Money Guy methodology (20x income by 65)
• 10:31: The 20s: “Am I doing anything?”
• 13:43: Power of starting early: compounding illustration
• 18:21: The 30s: “Am I doing the right things?”
• 20:07: Why a 25% savings rate matters
• 24:44: The 40s: “Have I done enough?”
• 27:22: Three-bucket tax strategy explained
• 29:23: Ivan vs. Manny the Mutant—Tax planning impact
• 32:58: Where should you be by end of your 40s?
• 34:38: The 50s: “What am I doing next?”
• 36:30: Specialization and glidepath for retirement income
• 39:34: Where should you be by end of your 50s?

Summary Table: Money Guy Investable Net Worth Targets

| Age | Target Multiple (of Gross Income) | Example (Median Income) | |---------------|-------------------------------|---------------------------| | 30 | 1x | $58,500 | | 40 | 3x | $86,000 → $258,000 | | 50 | 6.4x | $92,000 → $588,000 | | 60 | 13.7x | $82,000 → $1.1M | | 65 (FI) | 20x | Adjust to your number |

Final Thoughts

Brian and Bo reinforce that mastering your net worth at each stage is about more than comparison—it's about clarity, discipline, and the right strategy. The biggest gaps in real American net worth are not income, but habits and understanding. The right metric (investable net worth), the right tools and consistent action can set you apart from the statistics and put you on the road to financial freedom.

Tools & Resources Mentioned

• Free Net Worth & Wealth Multiplier tools: moneyguy.com/resources
• Net Worth Dashboard & Know Your Number course: learn.moneyguy.com

Listen to your money, make your assets work for you, and stay motivated for another year of building wealth the smart way!