In this net worth series, I have shared the net worth that a person in an age bracket (by decade) should have. We have discussed net worth for the 20s (click here to read), 30s (click here to read), 40s (click here to read) and 50s (click here to read) in the previous posts. In this post, I will share the summary by providing a scorecard.
The Scorecard
There are four categories for each age bracket, which are excellent, good, average, and fail.
| Age | Excellent (RM) | Good (RM) | Average (RM) | Fail (RM) |
| 20s | > 62,000 | 38,001 – 62,000 | 12,000 – 38,000 | <12,000 |
| 30s | >160,000 | 114,001 – 160,000 | 70,000 – 114,000 | <70,000 |
| 40s | >328,000 | 245,001 – 328,000 | 172,000 – 245,000 | <172,000 |
| 50s | >480,000 | 425,601 – 480,000 | 350,000 – 425,600 | <350,000 |
Keep in mind that this is based on my personal opinion and it just serves as a reference only.
My Personal View
The above figures are just estimation. Furthermore, net worth includes non-income generating assets such as your own residence and vehicles.
Thus, I personally prefer to set an amount that I can retire when I have that sum. For me, the number will be at least RM 2 million of income-generating assets. Assuming the money is in EPF, and the dividend rate is 5%, I will have an annual dividend of RM 100,000, which is around RM 8,333 per month. This is the amount that I think I could live comfortably with. The RM 2 million is set based on the assumption above. If my income-generating assets are able to provide me a cash flow of around RM 8,000 per month, I do not have to hit that RM 2 million number.
As everyone has different standard of living, you should set your own number. Furthermore, my figure might change in the future due to changes in my circumstances.
Conclusion
How do you fare according to the table above? Did you do well in your age bracket? Or do you have a negative net worth?
If you are below par, fret not and take action now to improve your finances. You may refer to the respective article based on your age for some recommendation. You could also contact me if you need a financial planner’s help.
If you are doing well, congratulations and keep up the good work. However, do not stop here. Continue to increase your net worth. I might be able to help if you need some advice.
No matter what are your circumstances, you can always improve it. You just need to know your current status and your goals. Thus, start now and accumulate your assets.
How can a financial planner help you?
I can help you to clarify your financial goals and objectives, and also set your net worth target together. We will also develop a plan to reach your goals and objectives, including your net worth target. This normally involves saving and investing. Furthermore, I will also help with your tax planning to reduce your tax liability. Depending on your situation, we may also work together in other areas of your finances, such as debt management and estate planning.
If you are interested in working with me to plan for your finances, just leave your details by clicking the button below. I will reach out to you and see if we would be a good fit for each other.
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Disclaimer: This post is for informational purpose only. You should use judgment and conduct due diligence before taking any action or implementing any plan suggested or recommended in this article.
