If you’re in your 50s and hear that the “average” net worth for people in your age group is over $1 million, you might be tempted to pop a bottle of champagne or stress about why you’re not feeling like a millionaire.
Before jumping to conclusions, it’s worth unpacking what those numbers mean and why most people don’t have a seven-figure bank account despite what the averages suggest.
First, the million-dollar figure comes from the average net worth, which is calculated by dividing the total wealth of a group by the number of people in that group. Sounds straightforward, right? The problem is, a few ultra-wealthy individuals – think tech billionaires and hedge fund moguls – can skew the average way up.
Ivy Grace | Yahoo Finance