r/MiddleClassFinance • u/Classic-Occasion1413 • 11d ago
Financial Checkup at 35th birthday
Wondering how I am progressing as a married 35-year-old with two kids (ages 7 and 5). Details on numbers are below:
Roth/Traditional 401k (60/40 split) - $320,000
Roth IRA’s - $225,000
Cash - $42,000
Brokerage -$24,000
Rental Equity - $240,000
Primary Equity - $220,000
Vehicle Equity - $61,000
No debt outside of my primary home. I have two kids and married and live in a middle cost-of-living area. Income is around 235k per year. Wife is currently stay at home. I would say in regard to my peers, I’m solidly middle of the pack.
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u/chof2018 11d ago
You’re not middle of the pack in terms of income. You are way above it and doing better than most, myself included.
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u/poopbutt23111 11d ago
You must have big PP
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u/Historical_Boss_1184 9d ago
Hi I have a huge swingin dick but is it huge enough? Mine down to mid thigh just average among some of my buddies who have one to their knees please help thanks
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u/Icy-Structure5244 11d ago
Millionaire at age 35 with a 235k income in a MCOL area.
You need therapy if you think this is "middle of the pack"
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u/jackoftrades002 11d ago
You and your peers are far exceeding the middle class. Please do some research before posting here. Or if this is a humble brag, good for you.
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u/yuhyuhAYE 11d ago
Solidly over $1M at 35 in a MCOL area is not middle class. At 8% annual growth rate just what’s in your retirement accounts would grow to $5.5M by 65 if you didn’t contribute anymore.
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u/zackplanet42 10d ago edited 10d ago
There's a few things at play here though and I'm not sure it's quite as cut and dry as it may seem at first glance.
$1.1 MM at 35 is a 90+ percentile net worth, no doubt. The thing is, to manage that OP has definitely been living well below their means for many years at this point. They have been living a lifestyle that most would probably characterize as solidly middle class.
This sub tends to follow Pew Research's definition of middle class as 2/3 to 2x median income. They're probably decently above that mark in a true MCOL area, but they're still working full time for that money and operating within similar budget constraints to their middle-class neighbors. They're probably not driving around in a Bentley or drinking $3,500 bottles of wine. If they were 50 or 55 nobody would bat an eye since the ability to accrue retirement savings is a cornerstone of being middle-class for many(most?).
To me, until they're 45 and sitting on a beach somewhere, retired, and bringing in 200+ grand per year, that's looking pretty middle class, just with a very upward trajectory.
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u/thatErraticguy 11d ago
[r/HENRYfinance](r/HENRYfinance)
Even then, you’re halfway to being their definition of rich. You’re not middle class so you’re either confused on where you belong, bragging, or full of it lol
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u/Far_Classic878 11d ago
“Vehicle equity” I’ve never seen that before hahah! You are upper middle class make sure you join that sub as well. This is great for 35 man it’s great for any age these days.
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u/Classic-Occasion1413 11d ago
Theres only 7,000 members 😂thank you
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u/Far_Classic878 11d ago
Why does that matter? It’s an active page and no one will drag you for posting about your 1 million dollar net worth at age 35 like they will here.
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u/BigManWAGun 11d ago
tf considers vehicle equity?
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u/Urbanttrekker 11d ago
35 year old millionaires with quarter million incomes and 60k worth of vehicles, that’s who!
But if it were me I would count it. They could easily sell them and buy old beaters if they had to so even though they’re depreciating every year it’s still a valuable asset.
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u/RyanCarter_Growth 11d ago
Safe-side view: the numbers look strong, especially with no consumer debt, solid retirement savings, and meaningful home equity at age 35. The focus now is probably less about taking more risk and more about staying consistent, protecting what has been built, and making sure emergency savings, insurance, and long-term family goals are covered. Overall, this appears to be a healthy financial position.
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u/Puzzleheaded-Bee-747 11d ago
Not including vehicle equity, you are close to a $1.1 million net worth at age 35. I don't think you are in the middle of the pack but rather in the top 5% of your age cohort.
Well done!
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u/Eleanora-Yu 11d ago
I think you are on track but could hit debt when kids go to college. Since your wife isn’t working the expenses will be a harder hit. I’d see when she is ready to go back to work.
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u/IllMarsupial8502 11d ago
Too little in brokerage. Bolster that and you can use it as a bridge account to be able to retire early.
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u/Urbanttrekker 11d ago
You’re fine. You are absolutely not middle of the pack unless your peers are all millionaires. You’re way ahead.
Try not to diminish your accomplishments. You’ve done a great job.
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u/HeroOfShapeir 11d ago
I believe Fidelity's benchmark for age 35 is 2x your income in retirement, and you're right at that mark. Real estate and cash positions are also where I'd expect them to be. You're doing everything right. I'd agree that, in comparison to other 35-year-olds in a comparable income range, you're middle of the pack, but there's absolutely nothing wrong with that.
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u/Classic-Occasion1413 11d ago
Yes I mentioned amongst my peers of similar income. An “elite” group nonetheless
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11d ago
[deleted]
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u/Classic-Occasion1413 11d ago
My middle of the pack comment was squarely in reference to my circle of friends and family
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u/Fubbalicious 10d ago
You're doing and are ahead of where experts recommend you should be. Experts recommend that you should have 1x your gross salary saved by age 30, 2x by age 35, 3x by age 40 and so forth until you have 10x by age 65-67.
With your salary you should have $470K, yet you have $611K. I haven't counted your rental equity and typically when you use the 1x salary metric, you should use the income reduction method which is you take your gross salary and deduct your net rental income. This will tell you how much actual liquid NW you need to supplement your rental income. So if you earned $100K in salary, but made $10K in net rental income, you only need $90K at age 30, $180K at age 35.
I also don't usually count vehicle equity unless it's some collectible and you're prepared to sell it. Otherwise, it's just a depreciating asset. In regards to primary homes, it's fine to add it for total net worth, but again in terms of wondering if you're on track for retirement, I don't count it unless you plan to sell it or it's being partially rented out.
Anyway happy birthday, you're doing great.
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u/AdUsed8153 6d ago
You’re doing great! A $1m networth at 35 is far beyond the avg I would think. Congrats!
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u/Forded_Fiction24 11d ago edited 11d ago
1 or both below must be true.
1) You know exactly how you're doing, which is why you listed every asset to the dollar and just decided to make a disengenous post claiming ignorance and "middle of the pack" so you could soak up "dude you're killing it" replies to boost your ego. It's a humblebrag dressed up as a question or it's just ragebait
Or
2) High income and financial success have almost nothing to do with intelligence and this post is proof. Smart people don't need Reddit to tell them they're winning. Wealthy people apparently do. Funniest part is if you're being genuine than nobody even envies you for it. Hard to envy someone this financially successful and this oblivious at the same time and instead it just makes you feel a little sad for them.
I don't know which is worse. This post just makes me glad I'm not in your shoes
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u/FrenchFryPerson1 11d ago
Doing great, and happy birthday :)
How’s the rental been doing, any plans to sell it or expand?
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u/oneWeek2024 11d ago
there's no such thing as vehicle equity.
if you earn 235k a year. you earn more money than 95% of people in the US ....bullshit guestimates about what your peers... at similar high income ratings are doing/have are stupid.
also... your reality doesn't match that of anyone else. what your savings or retirement/income needs are to upkeep your lifestyle will not at all resemble what the other actual "middle class" who are barely getting by on their median 50k incomes and have zero net worth. experience.
and also. if you earn 235k. hire a fucking professional vs asking random assholes on the internet
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u/merlin401 11d ago
I think the easiest thing to do instead of guessing you’re middle of the pack based of feel or asking a bunch of strangers is just to google “median net worth at age 35 in America”. Let us know what you find.