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Started By
Message
U.S. millionaires say $7 million not enough to be rich
Posted on 3/14/11 at 10:07 am
Posted on 3/14/11 at 10:07 am
6
Posted on 3/14/11 at 10:24 am to LSUDad
Really depends on what "rich" is perceived to be. Doesn't it?
If "rich" is this:
$7.5Mill ain't going to get you there.
_____________________________________
Often, folks living house-poor and under water in their upper end neighborhoods don't think of themselves as "rich". No one should be crying their eyes out for them, but odds are many middleclassers wouldn't trade worlds with them either, if they were given the chance.
The grass often appears greener, even though it isn't.
If "rich" is this:
$7.5Mill ain't going to get you there.
_____________________________________
Often, folks living house-poor and under water in their upper end neighborhoods don't think of themselves as "rich". No one should be crying their eyes out for them, but odds are many middleclassers wouldn't trade worlds with them either, if they were given the chance.
The grass often appears greener, even though it isn't.
Posted on 3/14/11 at 10:49 am to LSUDad
It's all relative I guess.
But as someone in my 20s, I figure I'd need several (3-4) million for my wife and I to retire comfortably and maintain the life-style of pre-retirement. If I remember right, that would allow for the equivalent of a $2-300k income. So if rich is $600k/yr, then I guess they would need more than $7 million.
But as someone in my 20s, I figure I'd need several (3-4) million for my wife and I to retire comfortably and maintain the life-style of pre-retirement. If I remember right, that would allow for the equivalent of a $2-300k income. So if rich is $600k/yr, then I guess they would need more than $7 million.
This post was edited on 3/14/11 at 10:50 am
Posted on 3/14/11 at 10:57 am to LSUDad
$7m is rich. I base this on the fact that I could never work again and still buy a million dollar home and get $250k a year with a 2% COL increase every year for the rest of my life. (I could probably get double that but I'm being conservative)
On top of that, it will only be taxed at the capital gains rate which is less than ordinary income.
On top of that, it will only be taxed at the capital gains rate which is less than ordinary income.
This post was edited on 3/14/11 at 11:00 am
Posted on 3/14/11 at 11:11 am to ApeCo80
quote:
$7m is rich. I base this on the fact that I could never work again and still buy a million dollar home and get $250k a year with a 2% COL increase every year for the rest of my life. (I could probably get double that but I'm being conservative)
+1
Anyone that can live better than 99% of the population without having to work the rest of their lives is rich.
Posted on 3/14/11 at 11:20 am to LSUKTR
quote:
But as someone in my 20s, I figure I'd need several (3-4) million for my wife and I to retire comfortably and maintain the life-style of pre-retirement. If I remember right, that would allow for the equivalent of a $2-300k income. So if rich is $600k/yr, then I guess they would need more than $7 million.
7 mil in my account, aside from another market crash, would easily generate enough for me to have fun for the rest of my life with a piss-ant 5% yearly return.
Posted on 3/14/11 at 12:16 pm to LSUKTR
quote:
I'd need several (3-4) million for my wife
quote:
that would allow for the equivalent of a $2-300k income
4% is a good safe figure to pull out every year and not lose principal to inflation. You would be looking at $120-160k.
Posted on 3/14/11 at 12:40 pm to Cash
quote:
4% is a good safe figure to pull out every year and not lose principal to inflation. You would be looking at $120-160k.
I would still work part-time with this income if I had a family and all. Would I be well-off? Of course. But rich, I don't know.
This post was edited on 3/14/11 at 12:41 pm
Posted on 3/14/11 at 1:21 pm to LSUKTR
quote:That's the point.
It's all relative I guess.
It really is.
For some folks "rich" is simply electricity and an a/c as they live life otherwise without another care in the world on the Atchafalaya.
Sadly so often, it's more a matter of what the other guy's got. There anticipated happiness just-around-the-corner with the next acquired "thing". Better set of golf clubs. Better club/course to use them on. Nicer car. Bigger house. Second house. Etc.
There are many stories of previously settled folks hitting the lottery, then ruining themselves financially. A bit of that comes through in the article. A bit come through in the reader response.
________________________________
Could be that rich is simply the point where you have the stuff you really want and you're not worrying about the money to make ends meet, regardless of income. By that standard, there are multi-millionaires who'd not ever qualify, and folks of very modest means who would.
This post was edited on 3/14/11 at 3:13 pm
Posted on 3/14/11 at 1:46 pm to NC_Tigah
quote:
Really depends on what "rich" is perceived to be. Doesn't it?
A few years back I read a study on What is Rich in America. They asked what was the minimum salary one could make and be considered rich? After reviewing the data they discovered that almost 80% answered with an amount that was double their current annual salary.
Posted on 3/14/11 at 1:47 pm to NC_Tigah
quote:
It's all relative I guess.
That's the point.
How is being in top 5% of income based on interest alone, not even taking the $7 million nest egg into account, not rich? Even if you live some place with a high cost of living like California or New York, spend a $1,000,000 to get a nice home/apartment and you're still living a pretty lavish lifestyle off interest alone. Maybe you aren't wealthy with a weekend home in the Hamptons, but you're way out of touch with reality if you don't think you're rich.
Posted on 3/14/11 at 3:04 pm to TigerinATL
quote:You're asking me?
How is being in top 5% of income based on interest alone, not even taking the $7 million nest egg into account, not rich?
Gosh, I'd think $7 million in investments should unquestionably qualify as rich. $3.5 million at age 56 would qualify IMO, as was also the feeling of the author and 60% of those affluent folks surveyed.
I don't recall the article as having to do with who WAS "rich" (by whatever standard). I thought it had to do with who FELT they were rich. I can tell you without equivocation there is a very wide spectrum of perception amongst affluent folks about that, because of the 2008-09 crash and for many of the other unfortunate reasons I laid out above.
quote:However, if to keep up with the Jones you go into hock to the gills, buy that weekend home in the Hamptons anyway, then suddenly find yourself needing to sell, and underwater 1.5X your savings, you're a an insolvent once rich has-been. Very unrich indeed. In more ways than one. Again no one should shed tears for someone like that, but it is what it is.
Maybe you aren't wealthy with a weekend home in the Hamptons, but you're way out of touch with reality if you don't think you're rich.
Posted on 3/14/11 at 3:10 pm to TigerintheNO
quote:Interesting.
After reviewing the data they discovered that almost 80% answered with an amount that was double their current annual salary.
quote:Seems to substantiate the What is Rich in America study. At least from a slightly different angle (savings vs income).
From the OP Link
Indeed many would need to have at least $7.5 million in order to feel they were truly rich,
_____________________
The average age of respondents was 56 years old with a mean of $3.5 million of investable assets.
Posted on 3/14/11 at 3:43 pm to NC_Tigah
Heard this the other day,
"At a party given by a billionaire on Shelter Island, Kurt Vonnegut tells his friend, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history.
Heller said, “Yes, but I have something he will never have: Enough.”
"At a party given by a billionaire on Shelter Island, Kurt Vonnegut tells his friend, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history.
Heller said, “Yes, but I have something he will never have: Enough.”
Posted on 3/14/11 at 3:59 pm to JWS3
quote:Bingo.
Heller said, “Yes, but I have something he will never have: Enough.”
Posted on 3/14/11 at 4:04 pm to NC_Tigah
There's nothing wrong with being driven. Ray Dalio isn't working 60 hrs a week still because he has to, he's doing it because he wants to. When he's had "enough," I'm sure he'll retire too.
Posted on 3/14/11 at 4:44 pm to LSUDad
quote::kige:
U.S. millionaires say $7 million not enough to be rich
Posted on 3/14/11 at 6:03 pm to Cash
quote:
4% is a good safe figure to pull out every year and not lose principal to inflation. You would be looking at $120-160k.
Yeah, but you could deplete the principal that isn't tied up in land over your lifetime, just for kicks. That's a luxury that a person who doesn't have $6m in liquidity doesn't have. (obviously, many CHOOSE to leave the full $7m in principal behind for their heirs).
Then again, there are some old people who do reverse mortgages and unload their home equity, as well.
Posted on 3/14/11 at 7:09 pm to NC_Tigah
If every millionare said, $7 million was enough then what kind of economy would this leave us? Im sure a large percentage would reinvest in new business ventures helping create more jobs and searching for ROI obviously. If someone earned their money the hard way then I suspect those millionaires would probably save money, invest a portion, and then seek some sort of business venture. How many days at the country club before you finally get bored? Its retorical 
Posted on 3/14/11 at 11:44 pm to LSUDad
It's a personal opinion and how you spend your money
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