Cheddarblog

Yet another calculation that the Swiss_Mouse uses in determining how well he is doing financially is a calculation he found in a financial article.

Social Security Lifetime Earnings Ratio

This calculation is meant to give you a numerical representation of where you are at in your career based on your income and net worth. The calculation is as follows:

Ratio = (Current Net worth) / (Sum of your life time Social Security Earnings )

(Please note that your Social Security Earnings are available to you in the yearly mailing that the Social Security Administration mails out.)

You can then multiply this ratio by 100 to gain a full percentile number. You can then determine into which of the following categories your current financial state falls:

• 0-25%=Early Career
• 26%-100%=Mid Career
• 100%-200%=Retirement

The Swiss_Mouse will inform you that his percentile is: 30.73%