Investing

Candian Median family net worth was $300k!?

  • Last Updated:
  • Jan 24th, 2018 1:28 pm
[OP]
Newbie
Feb 10, 2017
29 posts
5 upvotes

Candian Median family net worth was $300k!?

http://www.cbc.ca/news/business/statist ... -1.4437137, this is for real? are we missing something here

We are at 37 , at most , we just half of that with no property and saving around $1000-1500 per month. Are we doing something wrong or missing somethng here?

so does this mean, Canadian Median family=
-2 adults in the family having a high paying job 80k+
-Relying on Parents $$
-bought a house at the age of 5-10 years ago. ?
Last edited by newbiehere on Jan 10th, 2018 1:19 pm, edited 3 times in total.
132 replies
Deal Addict
Jul 30, 2001
2599 posts
863 upvotes
GTA
Real estate.

I'm willing to bet a large number of Canadians would have a negative net worth without it.
Deal Addict
May 17, 2012
1182 posts
461 upvotes
grand valley
N8Magic wrote:
Jan 10th, 2018 1:20 pm
Real estate.

I'm willing to bet a large number of Canadians would have a negative net worth without it.
+1
Deal Expert
User avatar
Oct 26, 2003
28166 posts
1970 upvotes
Winnipeg
gta RE appreciates 100k per year on those single detach, you make more sitting on an empty house than working
Deal Fanatic
User avatar
Mar 9, 2007
8815 posts
3302 upvotes
Toronto
Most RFD'ers on here are worth more than that...

WOULD SOMEBODY THINK OF THE CHILDREN!!!
Deal Expert
User avatar
Oct 26, 2003
28166 posts
1970 upvotes
Winnipeg
Cheapo-Findo wrote:
Jan 10th, 2018 1:54 pm
Most RFD'ers on here are worth more than that...
most rfders are from gta, any random shack puts them above 300k...
Sr. Member
Feb 17, 2012
608 posts
118 upvotes
Toronto
Our networth is over 700k but to me personally it means absolutely nothing at all. Not in the slightest.

Edit: I also love it when people say wow your house is worth $1.xxx,xxx. Unless I wanna live in the boonies my homes value also doesn't mean a damn thing!
Deal Addict
Jun 20, 2011
1655 posts
539 upvotes
VANCOUVER
I wonder what the numbers would be without factoring in GTA and GVA.
Deal Fanatic
Feb 15, 2006
7250 posts
1707 upvotes
Toronto
Montreal RE prices are on fire lately.

So when you have a large portion of the Canadian population living in GVA, GTA, GMA, and the average houses are over $1M, that drives up the networth.

Without RE, the average networth will be way lower.
Deal Addict
Oct 6, 2015
1300 posts
684 upvotes
Most people don't start to accumulate real wealth until they're in their 40s and 50s. With the costs of their kids significantly paid off, and salary increases kicked in.

And yes, if you subtract RE, and money that's been saved and put into GICs/bank accounts to finance the purchase of RE -- the net worth of Canadians is absolutely abysmal.

One other thing to remember -- pension assets need to be discounted by 20-40%, to take into account tax that will be owing on them as they are withdrawn.
gta RE appreciates 100k per year on those single detach, you make more sitting on an empty house than working
Looks like someone is living a few (ie: 3-5 years) in the past.
Member
Dec 13, 2005
212 posts
59 upvotes
Remember to count tfsa, RRSP, and any pension transfer values. You can get to 300k pretty quickly if you work a decent job for 10+ years.
Sr. Member
User avatar
Feb 1, 2012
792 posts
725 upvotes
Thunder Bay, ON
My net worth was <$100k when I was the OP's age. I had just finished taking 2 years off work for education and a career change, but that cost me 2 year's savings, not a massively significant amount. Also inflation has obviously changed the numbers since then.

Still, as another poster said, many if not most people earn most of their wealth later in life. Recently retired, 95% of my current net worth was earned after age 35.

Earning, saving and investing is a long, slow process, taking place over decades. When younger, your savings rate is important. As the years go by, investment growth will begin to exceed your savings rate. It is important to start early and invest regularly, as those early savings are what eventually drives the compound investing gains.

Millionaire Teacher is a good inspirational book about frugal living and low cost investing. Highly recommended.

The Getting Started section at www.finiki.org is also an excellent learning resource.
Invest your time actively and your money passively.
Deal Addict
Nov 24, 2013
4630 posts
1383 upvotes
Kingston, ON
newbiehere wrote:
Jan 10th, 2018 1:19 pm
http://www.cbc.ca/news/business/statist ... -1.4437137, this is for real? are we missing something here

We are at 37 , at most , we just half of that with no property and saving around $1000-1500 per month. Are we doing something wrong or missing somethng here?

so does this mean, Canadian Median family=
-2 adults in the family having a high paying job 80k+
-Relying on Parents $$
-bought a house at the age of 5-10 years ago. ?
Look at the chart midway down in the article you linked. Biggest growth in median wealth was in ON and BC... real estate. They're also the two highest provinces in median net worth.
As of the end of 2016, 61.7 per cent of Canadian families owned their residence, although most of them held some sort of mortgage.
Median = 50th percentile. This all but confirms the median Canadian family owns their home ( maybe with a mortgage, but with equity too).
Still, nearly 30 per cent of Canadians were debt free last year. Seniors were the most likely to have no debt, at 58 per cent of older Canadians last year. But that ratio is down sharply — on the eve of the 21st century, nearly three-quarters of Canadian seniors had no debt.

In comparison, 15 per cent of Canadians aged 35 to 44 reported being debt free last year.
Age is the next big issue. The older you are, typically your house is paid off (or at the least has high equity), you've peaked in your career, and your retirement savings have compounded over time.

2012 figures:
Image

Another interesting way of framing it... while the median Canadian household may be at $300K, to hit $300K in your thirties, you'd be at the ~85th percentile of your age group:
Image
Sr. Member
Apr 9, 2012
531 posts
124 upvotes
Markham
newbiehere wrote:
Jan 10th, 2018 1:19 pm
http://www.cbc.ca/news/business/statist ... -1.4437137, this is for real? are we missing something here

We are at 37 , at most , we just half of that with no property and saving around $1000-1500 per month. Are we doing something wrong or missing somethng here?

so does this mean, Canadian Median family=
-2 adults in the family having a high paying job 80k+
-Relying on Parents $$
-bought a house at the age of 5-10 years ago. ?
Your net worth seems very low for someone at the age of 37. Two of you only have like $75k net worth each but you have work well over 15 years! Unless you have had a lot school debt and didn't start working until 30 I don't see how your net worth is so low.

Maybe you are paying very high rent over the years and also leasing a car? No property also kills you.

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