re: At what amount of savings or net worth do you consider someone to be rich?

I’d say wealthy is achieved at enough income generating assets to maintain your lifestyle (or a target lifestyle) without touching the principle.

Rich is relative. Compared to some poor soul in the third world or anyone from a hundred years ago we’re all rich.

I think the 5-10 million range is pretty spot on for the wealthy threshold. Not counting home equity (which would ideally be paid off), that should be plenty enough to do whatever you want, whenever you want. At 4% ROI that is a 200-400k annual income. If you can’t be happy with that you’ve got deeper problems.

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Rich to me is more related to income. Let's say >500k/year.

Wealth to me is more related to time. Can I do whatever I want whenever I want.

I know a lot of rich people who will never be wealthy.

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Great way of putting it and I agree.

Rich, you can afford to use private charter jet service for all your domestic air travel.

Wealthy, you own your own your own jet.

Man A: makes 100k a year and has saved enough for retirement. Owns his home. Has a loving wife and 2 great kids and a close relationship with God. Loves his job. Gets plenty of time off to do what he loves like hunt, fish, golf. Takes 2-3 family vacations a year. He is happy and has what he needs

Man B: Makes 1 million a year. Divorced twice, has a c-unt wife who sleeps around and 4 spoiled kids that only love him when he buys them shite. Works endlessly to meet his boss’s demands to finance his lifestyle of nice cars, big house, and substance abuse to try and fill an empty void because deep down he is a miserable frick. Gets little time off and has long forgotten what he even enjoys in life.


You tell me which one is rich

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think the 5-10 million range is pretty spot on for the wealthy threshold. Not counting home equity (which would ideally be paid off), that should be plenty enough to do whatever you want, whenever you want. At 4% ROI that is a 200-400k annual income. If you can’t be happy with that you’ve got deeper problems.

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Accurate

Assuming 5 million in investment resources? And a conservative 3% annual withdrawal? You have 150k plus indefinitely

Yep, agree with that assessment. $5M is fringe but $10M net worth (assuming all invested in income producing investments) with a paid off home basically checks all the boxes. That’s $300K pre-tax of spending cash…Even with a 25% effective tax rate it’s $225K take home and almost $19K/month in available cash to spend. Yep, that hits the mark.

Yeah. That's something more than one study has allegedly found. The definition also shifted with the desired consumption (people who want mansions and yachts rather than homes and cars score wealth differently)

The raw income is not really an objective criteria either. Earning just 30k annually puts you at or around the top 1% globally but you live very differently on 30k in Los Angeles than Costa Rica

For a truly opulent lifestyle where all material tasks are delegated an American probably needs millions of spending annually (someestimat 8 million). But a more attainable rich would be something sustainable in the low six figures annually (living in the United States)

Over $5million

Rich is being able to buy a average priced house in the area and afford the monthly payment while also having 2 vehicles either with monthly payments or paid off. It’s taking a vacation at least once a year. Rich is being able to afford those things on a monthly cash flow basis with your job. Wealthy is being able to afford those things without a job.