Is your net worth on target for your age and household income level? In the book "The Millionaire Next Door," authors Stanley and Danko suggest a simple formula:
Divide current age by 10
Multiply that by annual pretax income, excluding inheritances.
Example: If you're 40 with an annual income of $50,000, your net worth should be at least $200,000 (40 divided by 10 = 4 and $50,000 x 4 = $200,000). Although this is a suggested minimum, the more you exceed this figure, the better. Remember: other factors affect net worth--such as family size and health--so use this figure as a starting point.
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