How much have you saved?

by Finn

While this story is about college financial aid, what I found most interesting was the finances of the families involved:

An inside look at financial aid offers from private Franklin & Marshall College

For example, Student A comes from a family with an AGI of $400k, with $635k in home equity and $360k in assets not in retirement accounts. While recognizing the possibility that they could have millions stashed in retirement accounts, doesn’t that seem like a net value of less than $1M outside of retirement accounts is low for that level of income? Granted, I also don’t know what sort of special circumstances they might’ve faced, e.g., expensive medical treatments, long periods with much less income, but if we assume they didn’t face any of that, wouldn’t you think they’d have accumulated more?

Side note: This example does suggest that maximizing retirement account contributions is one way to maximize financial aid.

Looking through the other examples, while some families have assets that seem commensurate with their incomes, especially the families with low incomes, it seems to me that others should’ve been able to accumulate more assets, including home equity.

What do you think? I know I’m well above national norms in terms of how much I save, but do you think these levels of assets and home equity seem low relative to their incomes, taking into account where they live?