What’s Your Nest Egg Ranking? July 7, 2006
That’s my score up there according to a new online calculator from A.G. Edwards that lets you figure out how well you are building wealth vs. the rest of the U.S. public (nesteggscore.com). According to the site, the national average is 631, a ‘fair’ ranking:
The 14 question survey told me that I have a score of 748, which gives me a Nest Egg Score ranking of “Good”:
You’ve done a respectable job of saving up to this point in your life. To improve your Nest Egg Score, you should focus on saving more — especially for retirement — and reducing debt, such as paying down credit cards or building more equity in your home (if you own one).
The scoring factors in age, housing, investments, and location (cost-of-living). With my ‘Good’ ranking, their suggestions are:
- Continue to manage debt.
- Maximize your retirement contributions.
- Consider your other financial goals.
- Review your investment mix.
- Create or review your estate plan.
While the suggestions sound like standard retirement planning advice, the scoring is an interesting indicator of how you’re doing. If I took this survey 3 years ago, my score would probably have been much lower. Since then, I’ve contriuted the maximum allowed in my retirement accounts, spent less than I make, and saved up to purchase real estate. How are you scoring?