What is the net worth of CFA candidates or charterholders … defined as financial assets (excluding residence) minus liabilities ? Wud $1.5 million net worth be considered high?
Thanks for defining net worth.
Are you looking for the mean, median, mode, minimum, maximum . . . ?
Huh? This depends on age, job, location, and so many other things…
Are you looking for the mean, median, mode, minimum, maximum … ?
Median or mode due to skewness of distribution.
Why would you exclude most people’s largest asset?
Why do you care? Go get a hobby bro
In that case, USD1.5 million is way too _ low _.
If that’s all you’re worth, perhaps the CFA designation isn’t for you.
current goal is to hit $1m by 35.
my lifetime goal is to hit top 1% of the us. prolly $10m, which coincidentally is where the estate tax is when married.
im at 1.3 mm and Im 33. come at me bros.
i would be so happy if I could get my net worth up to zero…
Is $1.3 million supposed to be good or bad? I seriously don’t know.
The average american earns something like 1.6 over a lifetime. So that would be high.
It totally depends on age. If you’re asking how much wealth does the average Charterholder die with, or have in late retirement, for sure it would be multiples of $1.3M. I’ll guess … $4M. But that’s median. A few will be $1B, and many will be $10-$100M. But I think there’s a long tail of folks who just plowed away making $200k their whole life, and spent most of it on family stuff, but have a $1-2M house.
For 30-something Charterholders globally, I’ll guess net worth is under $250k US. Not everyone is a NYC I Banker.
Because it’s most people’s largest liability.
And both are very significant parts of people’s net worth. Usually the most significant.
^The actual answer: It’s a huge outlier for the average person so it skews results. You could almost think of a person’s net worth being like a company’s Quick Ratio. You take cash and marketable securities (and accounts receivable, but that just makes the metaphor more confusing) and divide it by short term liabilities. A house wouldn’t fall into either the nominator or denominator. It’s illiquid so not immediately marketable. Or, it’s a long-term liability.
By removing it entirely, you get a pretty clear picture of that person’s current financial well-being.
If I have a $20 million house and $1 million cash, that is a lot better than having $1 million without the house.
^agreed with ohai. house counts.
…and $25 M mortgage liability. Net worth = negative. If you don’t have a family, rather hold cash and liquid assets and rent a house or an apartment. You may also easy transfer your wealth and run away from current location if necessary.