Skip to main content
No. of Recommendations: 2
The lifetime wealth ratio (“LWR”) is a concept invented by the financial blogger J. Money at Budgets are Sexy back in 2015. J. Money defined the LWR as:

Lifetime Wealth Ratio = Net Worth / Total Lifetime Income


https://ofdollarsanddata.com/wealth-discipline-ratio/

The Lifetime Wealth Ratio (LWR) is, at best, a metric of questionable value. According to the article referenced above, it is based on one's earnings record maintained by the Social Security Administration.

Prior to 1991, Social Security only reports one's gross earnings if they never exceeded the earnings limit on payroll tax.

Starting in 1991, Social Security began reporting one's gross earnings for the Medicare portion of the payroll tax.

After one retires, Social Security records one's gross earnings as $0.00.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.