Here’s the minimum net worth you need to be considered ‘upper class’ in your 60s — and the magic step to get you there
Photo by NomadSoul1 / Envato Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. With a jaw-dropping $85 to $93 trillion in aggregate assets, America’s Baby Boomers are the wealthiest generation in history, according to the Washington Post (1). After multiple decades of appreciating home values and a…
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
With a jaw-dropping $85 to $93 trillion in aggregate assets, America’s Baby Boomers are the wealthiest generation in history, according to the Washington Post (1).
After multiple decades of appreciating home values and a surging stock market, it’s easy to see why this cohort (currently aged between 62 and 80) has amassed such an impressive fortune.
Must Read
JP Morgan sees gold hitting $6,000/oz before 2027 — and a gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
But the fortune isn’t equally distributed.
In fact, about 53% of “peak boomers” — those who turn 65 between 2024 and 2030 — have less than $250,000 in assets, according to a study from the ALI Retirement Income Institute, a non-profit focused on retirement education, cited by CBS News (2).
In other words, there’s an overlooked but stark wealth divide within this senior age group.
A significant majority are barely ready for retirement. This suggests that only the “upper class” of Americans in their 60s are on course for a luxurious — or at least comfortable — retirement.
Here’s a closer look at how much wealth you would need to be part of this exclusive club of wealthy Boomers and one magic step that can get you there faster.
The top 10% of boomers
Based on the most recent data from the Federal Reserve Survey of Consumer Finances, as analyzed by the personal finance site DQYDJ (3), someone in their 60s would need at least seven figures in net worth to be considered above average. The average net worth of households led by someone this age is roughly $1.7 to $1.8 million.
The threshold is significantly higher for those in the top 10%.
You’ll need at least $3 million to be part of this exclusive “upper class” of seniors. Simply put, if you’re trying to break into the top tier of the wealthiest generation in history, you’ll need to be a millionaire at least three times over.
The good news is that it isn’t all or nothing; the closer you get to this elite club, the more comfortable your retirement is likely to be. And there’s a magic step you can take to get there faster.
Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going
Magic step to get into the upper class
Saving and investing diligently for years is the key to financial success.
And services like Acorns can make that significantly easier. The platform lets you automatically invest spare change from your everyday purchases into a diversified portfolio of ETFs managed by experts at leading investment firms like Vanguard and BlackRock.
For instance, if you buy a donut for $3.25, Acorns will round up the purchase to $4 and invest the difference — your spare change — in a smart investment portfolio. So a $3.25 purchase automatically becomes a 75-cent investment in your future. Sign up today and get a $20 bonus investment.
If you’re a boomer who hasn’t yet benefited from the financial boost real estate investing can bring, it isn’t too late.
Mogul is a real estate investment option that offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process that requires a minimum 12% return, even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
These financial tools can help you get closer to the seven-figure club. But the ultimate magic move is hiring an expert to help you use these tools efficiently.
An experienced financial advisor is like an indispensable co-pilot who can help alert you to any economic policy changes that impact your plans, find tax strategies that reduce costs and make long-term investment decisions with added confidence.
However, finding a good, reliable advisor isn’t always easy. This is where Advisor.com comes in. The platform connects you with an expert near you for free.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.
Just enter a few details about your finances and goals and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.
Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation, with no obligation to hire, to see if they’re the right fit for you.
Once you’ve got the right financial advisor in your corner, you can start drafting a practical plan for any long-term financial goal. And if becoming a multimillionaire, upper-class retiree is your goal, professional advice could be absolutely necessary.
You May Also Like
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see ourethics and guidelines.
The Washington Post (1); CBS News (2); DQYDJ (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
