How much does it take for you consider yourself rich?

Discussion in 'Business, Investing & Finance' started by divits, Sep 5, 2019.

  1. divits

    divits A Muffin of the Studly Variety
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    Ask this question to people and the answers are all over the place. While $1 million is a lot of money it sure isn't what it used to be.

    A Schwab survey put the number at $2.27 million based on responses from Americans. I would say that's a very comfortable number. At that number earning a conservative 4% you could withdraw $10K/month for 30 years and still have over a half million for your heirs. Not too shabby.

    How much money Americans think you need to be considered 'wealthy'

    I guess my number would be one that gives me enough money to not worry about money any more. Enough to finance all the travel and things I plan to do in retirement and help my kids and eventual grand kids. I'm thinking around a bazillion should do it.

    Then again, as I said, others' needs might be a little different than mine......

     
    #1 divits, Sep 5, 2019
    Last edited: Sep 5, 2019
    • bradgator2

      bradgator2 Internet Bully
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      Rich.... like right now?

      Zero mortgage, zero debt of any kind, 2 new cars, new tractor, 2 kid's college fund fully loaded, my projected retirement already fully funded, and some passive income streams in place. If I had all that, I would be working purely for beer money. So, whatever number that would accomplish that.
       
      • Concrete Helmet

        Concrete Helmet Hook, Line, and Sinker
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        I think about this often....like every time I buy my lotto tickets(2Xweekly) I even rationalize that when the jackpot is small say under 4 million or so I'd rather wait to win :lol:.

        Honestly I feel about the same way as Brad mentioned above. Debt free(getting close), a small car collection, maybe a second home(getaway) in the country somewhere, a steady income flow from secure sources and to bless, not spoil those around me....This may seem puny to some and it may also come from having a financially successful spouse, but I really don't feel the need for much else. Pass the rest on when I'm gone.
         
        • Politigator

          Politigator L-boy's Cousin
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          I'm guessing most people that have $2.3 million DON'T feel wealthy. 2.3 million at 4% withdrawal rate is 92000. Add social security and yes that is a comfortable annual amount but it isn't living high on the hog. I would not define the gross amount you have an indicator or wealth. By that definition in reality many government workers with a pension are rich. More so wealth is the resulting income steam. And I doubt most think of $120k per year as wealthy.

          I'd say somewhere between $5 and $10 million, closer to 10.
           
          #4 Politigator, Sep 6, 2019
          Last edited: Sep 7, 2019
          • BMF

            BMF Bad Mother....
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            I agree w/ the bottom line: $5+ million is "rich". That's why I get angry when I hear politicians saying "we need to tax the rich!" What is "the rich" to them? They seem to think if you make $250K or more you are "rich" - and that simply is not true. Also, that salary can change in a heartbeat - if you maintained that kind of salary w/ small raises from 30 years old until you were 60, sure - you 'should' be 'rich'.

            Anyhow, all of our situation's are different. I'm in a position where I'll make around $120K guaranteed income (from pensions) plus a little more from SS when I get there - but that's not money in the bank, that's monthly checks/income. So I hope to add actual net worth of $2-3 million by the time I'm into my 60's (11 years from now).

            I think having an income of $150K (household income) as a base, and other passive income (investments/rental property income, etc) and no mortgage payment you can live a very comfortable life....but are you "rich"? Not by 'tv' standards, but honestly you would probably be in the top 1% worldwide (right?) - maybe not in the US though.
             
            • divits

              divits A Muffin of the Studly Variety
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              I think $10 million is about right to call someone "rich". That much money can provide interest of around $500K/yr to live on while still maintaining your principle. While $500K is a lot of money to be sure, it will not fund the lifestyle of what Americans perceive as "rich" with multiple homes worth millions and a fleet of exotic cars. But it certainly can provide for a very comfortable life.
               
            • Gator By Marriage

              Gator By Marriage A convert to Gatorism
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              Not 1% in US, but top 10% for sure & possibly top 5%
               
            • BMF

              BMF Bad Mother....
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              Yep. There's "rich" and then there's "sick money"!

              I think if a young person, say 25 to 40 years old came into a ton of money (via lottery, lawsuit, inheritance, etc) they'd likely blow through it ("likely" - I'm sure there's a few exceptions). But somebody a little older "may" hold onto it longer (i.e. spend it more wisely)....but there's also exceptions there. If you earned the money - taking years and years to build wealth, you likely will live a comfortable life regardless.

              The book "Millionaire Next Door" goes into great detail about inheritance and generational wealth. People who come from wealthy families are just as likely to become/stay wealthy as they are to be losers.

              But to your $10 million number, I agree. That is 'generational' type of wealth where when you pass, you could leave a large chunk to your heirs.
               
            • BMF

              BMF Bad Mother....
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              I would definitely think it's top 10% and barely squeeze into the top 5%. I think you need over $200K annually to be in the top 3%.
               
            • ufgator812

              ufgator812 Duke of Marlborough
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              I know some people that are ****** rich every pay day or when they come into any found money...
               
            • FlyingGator

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              When thinking of leaving a big chunk o money to your kids, Mr and Mrs Menendez might discourage that..

              [​IMG]
               
              • Concrete Helmet

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                This in a nutshell....
                When I was newly divorced in my mid 30's(2003-2005) I changed careers and went into sales. I was making better money than I ever had selling what was at the time my passion and hobby. Money seemed to roll in effortlessly and I was earning almost double what my prior career paid. I paid little attention to money and spent as fast as I made.Mostly trying to impress Women and buying toys..... At one point I had a very near miss playing the Lotto. I matched 5 out of 6 numbers and the 6th number was #40....
                I had #41. At first I was OK with the 7K that I won but then started agonizing about that the 3 million that I could have won....I went into a horrible skid for the next 2 or 3 month's and was taking a draw more than I was getting commission. Finally my boss at the time an ex Sgt. Major called me outside and verbally stuck his foot sideways into my ass....He knew what happened and told me that my success had come almost too easy(I was still relatively new to the company, maybe 8 month's). The season had changed and I wasn't putting in enough effort. He was right I was still bemoaning my near miss and it took my focus off my work.

                I have no doubt at that point in my life had I hit that jackpot I would have very little to show for it today....boy how a good marriage and having my only Child has changed me.....
                 
                • ChiefGator

                  ChiefGator A Chief and a Gator, Master of the Ignore list!!!!

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                  Rich to me means not considering money when spending it, like say 100M for me, or at least 50.
                   
                  • Detroitgator

                    Detroitgator General Factotum
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                    It’s a relative number. For me, it’s an amount that gives me an increasing amount of control over my time.
                     
                    • Concrete Helmet

                      Concrete Helmet Hook, Line, and Sinker
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                      Great.....An arrogant prick with more money than God weighs in on the topic....:lol2:
                       
                    • Zambo

                      Zambo Poo Flinger
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                      To me, "well off" is retiring at 65 with 3 million. "Rich" would be retiring at 55 with 10 million.
                       
                      • URGatorBait

                        URGatorBait #TeamDubs
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                        It's arrogant c u n t

                        Get it right :shakehead:
                         
                        • Turk182

                          Turk182 Go to guy!

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                          To me rich is 10mil. and up
                          5 to 10 is well to do.
                          1 to 5 is good to go.
                          Everything under a million is just getting there.

                          Advice from a guy who has made millions and lost it all:
                          1. Get a professional financial advisor.
                          2. Learn the difference between want and need, quickly.
                          3. Make yourself live on a budget.
                          4. Lear how to say "no" to friends and family.
                          5. *****Pre-Nups are your friend.
                           
                          • ChiefGator

                            ChiefGator A Chief and a Gator, Master of the Ignore list!!!!

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                            Great points but number one is not really required and can be difficult to obtain a good one. After all only you know yourself well enough to actually act in your best interest. Everyone else is just guessing.
                             
                          • Bushmaster

                            Bushmaster Well-Known Member
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                            Rich to me is being able to retire today and your lifestyle doesn't have to change.
                             

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