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The calculation of net worth in 2017 was influenced by a unique confluence of economic factors. The aftermath of the 2008 financial crisis had largely subsided, and global markets were experiencing a prolonged, if sometimes volatile, expansion. Stock markets, particularly in the United States, were nearing all-time highs, which significantly boosted the value of investment portfolios for those with equity exposure. However, this rise was not a uniform tide lifting all boats. While the value of owned stocks and retirement accounts like 401(k)s and IRAs was appreciating, the housing market, though recovering, remained uneven. Real estate values in major urban centers were soaring, pricing out many potential buyers, while other regions saw more modest gains. For the average individual targeting a $500,000 net worth, the composition of their assets was critical. Reliance on a primary residence was common, but diversification into retirement accounts and taxable investments was often necessary to reach this benchmark.
