In a political world populated by multimillionaires, Tim Walz is a maverick.
The Minnesota governor and now Democratic running mate of Vice President Kamala Harris doesn't hold a single stock. He owns no mutual funds, bonds, private equities, or other securities, according to his most recent financial disclosures from January. There’s not a complicated web of investments, trust funds or family business dealings, and the governor reported no consulting or speaking fees.
It makes him relatable in a way other politicians aren’t. Walz is squarely middle-class. I know people like him. I bet you do too. His smile even reminds me of my dad. My dad never owned a stock.
The fact that most of Walz’s wealth comes from his and his wife’s years as teachers and his military and public service seems so normal. I know that’s not the entire story, but it’s refreshing.
Here are some observations and takeaways from what we’ve learned about Walz’s financial profile:
Throw-back retirement plan: A traditional pension
Walz, 60, has pensions from his decades in the public sector, whole life insurance, and college savings. His wife, Gwen, will have a teacher’s pension. Walz served 12 years in the House of Representatives, earning a federal pension that could be worth $800,000, according to an analysis from the Wall Street Journal. And while that sounds like a pile of dough, it’s not really: It would roll out to roughly $5,000 a month or $60,000 a year.
He’s fortunate, though. Pensions are a benefit few Americans have access to these days. In a traditional pension, employers contribute, invest and manage retirement funds for their workers, who then receive guaranteed monthly checks for life after they retire.
The workers most likely to still have a traditional pension like the Walzes are federal, state, and local government workers and teachers, union members, and active-duty military members with at least 20 years of service.
Today, just 11% of private employers offer pensions, compared with 35% in the early '90s. More than half of private-sector employees now have a 401(k) plan, according to the Bureau of Labor Statistics.
Average finances in an above-average political field
Walz’s net worth? Also extremely average, estimated to be in the range of $112,000 to $330,000, per his 2019 financial disclosure.
That puts Walz and his wife on par with the US median net worth of $192,900, according to the Federal Reserve.
Walz’s current salary as governor: about $127,000 per year. Real median household income was $74,580 in 2022, according to the Census Bureau. So Walz’s income is relatively high in the big picture, but far from someone you would call an ultra high-earner.
And unlike millions of middle-class American families, the Walzes are not homeowners. The couple bought a home in Mankato, Minnesota, in 1997 for $145,000 and sold it in 2019 for 315,000, reportedly below the asking price. Presumably, that home would be worth far more today. The median sale price of a home in Mankato was $350,00 last month, up 12.4% since last year, according to Redfin.
For many Americans, home ownership is a key way ro build wealth over time.
In comparison, JD Vance, the Republican candidate for the same job, is a multimillionaire who owns several homes including ones in Cincinnati, Ohio and Alexandria, Va., and he invests in myriad assets including gold and crypto, according to his most recent financial disclosures. Vance also earns royalties from his 2016 memoir, “Hillbilly Elegy.”
He and his wife, Usha Chilukuri Vance, have a net worth of around $4 million to $10.4 million, plus real estate, an analysis by the Wall Street Journal found.
Only a fraction of Americans own stocks directly
The revelation that Walz was stock-free grabbed lots of attention, but he is not alone by any stretch. A huge swath of Americans don’t own stocks.
Only 21 percent of US families own stocks directly, according to the Federal Reserve’s Survey of Consumer Finances. When you add in those who also hold stocks in retirement plans that figure jumps to 58%, but there are millions of Americans like Walz out there.
Race also plays a role. A recent study from the Federal Reserve Bank of New York found that 35% of white Americans’ individual financial wealth is invested in stocks and mutual funds, versus 8% and 14% for Black and Hispanic Americans.
Meanwhile, the stark reality is that people who earn the most money tend to own stocks. Last year, 84% of adults in households earning $100,000 or more owned stocks, but only 29% of those in households earning less than $40,000 did so, according to a Gallup report.
Where Walz is more like his political brethren
In several regards, of course, Walz is not like average folks. His finances are modest, but here's how he's potentially different.
As vice president, he'd earn an estimated $284,000 salary, a big bump that would put him somewhere in the top 5 to 10 percent of US earners. And his cost of living would be pretty low given the perks of the position — a free house to live in, travel, a car and driver, and plenty of other accoutrements of the office.
Perhaps the biggest distinguishing factor: Following his potential time in the inner sanctum of the White House, Walz will likely have book deals, speaker circuits, and think tank posts on the table. These opportunities typically are paired with sweet six-figure fees.
He'd be 64 — or even 68 — when he leaves the White House and would be stepping into what could be his highest-earning years. That’s quite a contrast to most 60-somethings who are more likely to be winding down their careers and sussing out how they'll live on what they've saved.
Not investing shouldn’t be your default
As a former public school teacher, National Guardsman and member of Congress, Walz has had a career that has allowed him to steer clear of having to make many investment decisions on his own.
But for the rest of us, saving for retirement and funding kids' college depends on taking on some risk by investing in stocks and bonds in the hopes of growing our wealth.
And it works: In the past 20 years alone, the S&P 500 delivered annualized returns of 9.7%. So far this year, the S&P 500 is up 11.78% and up 20.34% from a year ago.
So a bit of advice: You’re unlikely to end up in a job with a pension that will last your lifetime — much less land cushy speaking gigs that pay $100,000 a pop.
Walz’s financial choices are not necessarily something to emulate. Most of us do need to invest.
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist, and the author of 14 books, including "In Control at 50+: How to Succeed in The New World of Work" and "Never Too Old To Get Rich." Follow her on X @kerryhannon.
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