When does having a million dollars not make you rich?

[ZZman]

Apparently when you actually have it.

I have been reading articles that say people who have anywhere from 1-5 million consider themselves middle to upper middle class.

I can only think this perception depends a great deal on age and where you have your $$. Is it retirement accounts or investments/savings.

Interesting stuff.

 

[Jimzz]

Depends where you live also. Me and the wife are around 1.5m but also live in a higher cost of living place. That and most of it is tied up in 401k, investments, property, etc... so its not like we can just go out and buy anything anytime.
We grew up poor so we are very frugal. So the idea of spending is nice but we are very gun shy when it comes time to open the wallet.

 

[bullwinkle]

A million isn't what it used to be, I'm 55, if I combined all of my retirement savings (401K, CDs, etc.) with the (alleged) value of my paid-off house & vehicles, I would be in the ballpark-but it's still not nearly enough to retire.

 

[Rmay635703]

Reagan reinforced the idea that up through a million a year was middle class, (and that people without a pot to were also middle class)
that was obviously the 1980's

Even In earlier times (1920's ish) $150,000 a year was not considered rich but put you in a "well to do" category.

The real measure of wealth is the ability to make all your income solely off your wealth along with the ability to dictate and influence government and your society through its use.

People earning a few million are usually not independent enough to stop working for someone/something else and lack the means to influence society and it's decision making .

As inflation has eroded lower class folks wealth the amount of money it takes in their minds to be rich hasn't changed, while in reality being a millionaire in the 1930's when the notion started
has very different implications today than it did back then.

 

[BMWTurboDzl]

Originally Posted by ZZman
Apparently when you actually have it.

I have been reading articles that say people who have anywhere from 1-5 million consider themselves middle to upper middle class.

I can only think this perception depends a great deal on age and where you have your $$. Is it retirement accounts or investments/savings.

Interesting stuff.


Are you talking Net Worth or in relatively liquid assets? There's a big difference.

 

[SaturnIonVue]

Dang! Until now I didn't know how "poor" I am.

 

[02SE]

It depends on a number of factors. The most prominent being mindset. Anyone that has worked hard, and accumulated that net worth or more, is a driven individual. Usually they feel they can always do more.

 

[ARCOgraphite]

Originally Posted by ZZman
Apparently when you actually have it.

I have been reading articles that say people who have anywhere from 1-5 million consider themselves middle to upper middle class.

I can only think this perception depends a great deal on age and where you have your $$. Is it retirement accounts or investments/savings.

Interesting stuff.


Middle income with 2 working around here is about $120,000

How long would that last?

So far in my retirement since november last year, I have been spending about $2000 a month average. Not bad.

I could live off my 401K earnings no social security. But I don't have health care.

Not playing that game of thieves.

 

[Leo99]

Originally Posted by bullwinkle
A million isn't what it used to be, I'm 55, if I combined all of my retirement savings (401K, CDs, etc.) with the (alleged) value of my paid-off house & vehicles, I would be in the ballpark-but it's still not nearly enough to retire.


It's enough if you make it enough.

 

[Imp4]

Net worth means nothing when not considered with cash flow.

 

[gfh77665]

Originally Posted by ZZman
Apparently when you actually have it.

I have been reading articles that say people who have anywhere from 1-5 million consider themselves middle to upper middle class.

I can only think this perception depends a great deal on age and where you have your $$. Is it retirement accounts or investments/savings.

Interesting stuff.


You whined because you didn't have a million dollars, but you would be whining if you had a million dollars.

 

[bubbatime]

If you make a million dollars a year, you are rich. If your net worth is a million dollars, you are middle class, borderline poor.

 

[Donald]

People without a defined pension (most people who are still working) will need $1.5M to retire and live a similar lifestyle. So say some recent articles. A lot to save in a 401K or IRA.

If I did not have a lot of $$ to retire with, I would consider going to another country where you can live decently for $2500/month. Dominican Republic, Portugal and other countries.

 

[gfh77665]

Originally Posted by bubbatime
If your net worth is a million dollars, you are middle class, borderline poor.


Try explaining that to 95% of the earths population. I dare you.

 

[slacktide_bitog]

When you live in New York or San Francisco

 

[supton]

These days I wouldn't consider $1M in holdings that much, but I'm thinking in terms of being financially independent. It's still a lot of money, more than most, and depending upon one's savings & earnings rate, "enough" for one to live it up a bit.

All I know is, if I were to win $1M (after taxes etc) I would still be going to work the following day, and working for another 10+ years. Early retirement sure, but $1M just ain't what it used to be. 10 years of letting that grow (index funds, flipping into a Roth each year) and still saving up what I can.

 

[KJSmith]

Go talk to a wealth manager.

One million = 40k per year.... for the rest of your life.

40k a year does not make one rich.....middle class at best.

 

[skyactiv]

My wife and I are in the 32% federal tax bracket. We had a custom home built on 5 acres costing $600K total and paid cash for it.
We have over a million dollars in deposits. We have a private client account for the large sum not accessible online.

We consider ourselves upper middle class.
My wife is the bread winner and has most likely made business decisions that have impacted members here regarding their job.
I have to maintain a CDL as a semi mechanic or otherwise I'd be driving an Audi RS 3.

 

[demarpaint]

I recall reading late last year one out of every twenty Americans is a millionaire. I found that very interesting. I would estimate 1.5-2.0 million in liquid assets would be needed to retire w/o a pension, and that wouldn't be in the lap of luxury. Obviously where you live in retirement would play into it in a big way. EG Long Island vs. Florida or the Carolina's. I know I will get a lot more bang for my bucks getting off of L.I. and heading south.

 

[billt460]

Originally Posted by Jimzz
Depends where you live also.

This ^^^^^^^^^^^

That's a really big part of it. Trying to retire in places that have out of control, constantly escalating property taxes, along with homes priced into the stratosphere, can become an impossibility for most people. A million dollars won't go very far if you have $600K of it tied up in a home with $15K a year in property taxes.

There are a lot of very nice places to retire in this country that are affordably priced, and have low tax bases. You just have to take the time to look, and be willing to move when you find them. That can and does become difficult for people who are tired to their children and families. And don't want to move far away from them when they hang it up.