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The net worth it takes at every age to be richer than most people you know

Tanza Loudenback   

The net worth it takes at every age to be richer than most people you know

wealthy couple net worth

  • The typical American household has a net worth of about $97,300.
  • The richest 20% of the US population has a median household net worth of nearly $500,000.
  • When broken down by age, it can be helpful to see how your own net worth compares to others'. For example, the richest 20% of 41 to 45-year-olds have a median net worth of $379,000.
  • Visit Business Insider's homepage for more stories.

The journey to building wealth is a highly personal one, but it may be helpful to know how you compare to others along the way.

To find out the median net worth of Americans at every age, Harness Wealth, a financial adviser-client matching firm, used household wealth data from the Federal Reserve's 2016 Survey of Consumer Finances and developed its own proprietary classification of ages and ranges of net worth.

The typical American family had a net worth of $97,290 in 2016, which is the most recent data available. In other words, 50% of the population has a net worth below that threshold, and 50% has a net worth above it. People in the richest 20% have a median net worth of nearly $500,000, according to Harness Wealth's data. You can compare your own net worth using the net worth calculator.

Read more: How much money you need to retire at every age and comfortably live on investment income

It's important to understand the difference between income and net worth. Net worth is what you're left with after subtracting your liabilities (what you owe) from your assets (what you own), whereas income is what you earn each year and what's reported on an income tax return. A high income doesn't necessarily translate to a high net worth, which is why the latter is often a better benchmark for measuring wealth.

Keep reading to find out the median net worth of the top 20% of US households, according to Harness Wealth's calculations, as well as what it takes to be in top 50% and the top 10%.

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