What's Your Net Worth Target? Here's What Top 10% Americans Actually Have by Age

Track your net worth, not just your 401(k) balance—it’s the real measure of financial health. According to the latest Federal Reserve data (end of 2022), here’s what puts you in the top 10% by age group:

Why the wealth gap widens with age?

Simple: time. Older households had decades to compound investments, pay down debt, and build home equity. Most top 10% wealth comes from stocks, mutual funds, and primary residence appreciation. But here’s the catch—they also accumulated more debt along the way. Turns out people in their 30s-40s carry the heaviest debt loads, not twenty-somethings.

The actual formula for building wealth:

Priority stack:

1. Kill high-interest debt first → 20%+ credit card interest beats almost any market return
2. Grab employer 401(k) match → It’s free money (50-100% instant return)
3. Buy real estate → Monthly mortgage builds equity; it’s forced savings
4. Max out tax-advantaged accounts → IRAs, HSAs compound tax-free
5. Invest the rest → Stocks/index funds for long-term growth

The wealth gap isn’t magic—it’s consistency. Start early, automate savings, let compound growth do the heavy lifting. Even if you never hit top 10%, you’ll be way ahead by thinking long-term.

Bottom line: Your 20s-30s setup determines if you’re in the top 10% by 50-60. The math works if you actually execute the plan.