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When does having a million dollars not make you rich?
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If a couple marries, buys a house and has a couple of kids while mostly maintaining two incomes, it isn't that hard to get to a million in net worth.
If you factor in the NPV of any pensions it becomes even easier.
This assumes that this couple didn't spend everything they earned as it came in, of course, as well as their both having some reasonable level of education and therefore income.
Even the moderate levels of inflation we've seen in USD for the past forty years or so have obviously eroded the value of that million dollars as well, so what was a million dollars when Reagan came to office is less than half that now in constant dollar terms.
If you factor in the NPV of any pensions it becomes even easier.
This assumes that this couple didn't spend everything they earned as it came in, of course, as well as their both having some reasonable level of education and therefore income.
Even the moderate levels of inflation we've seen in USD for the past forty years or so have obviously eroded the value of that million dollars as well, so what was a million dollars when Reagan came to office is less than half that now in constant dollar terms.
4WD
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Not going to post what I have put away - but as others mentioned it ties strongly to where you live or retire. The spread is huge in the US alone.
As I mentioned in another thread - a good deal of folks try to carry past spending habits into retirement only to wind up working again. I have always lived in less house and driven simpler vehicles compared to my peer group - and I still need to improve on what I spend. Money does not go far these days.
As I mentioned in another thread - a good deal of folks try to carry past spending habits into retirement only to wind up working again. I have always lived in less house and driven simpler vehicles compared to my peer group - and I still need to improve on what I spend. Money does not go far these days.
Originally Posted by 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.
I wouldn't say borderline poor, but certainly not rich.
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.
I wouldn't say borderline poor, but certainly not rich.
I find this post and replies very interesting...
Thought provoking... Mind blowing, almost.
Thought provoking... Mind blowing, almost.
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A million dollar net worth is probably at least what you should have if you're near retirement...and in my area, that means non-home amounts making that total. If you live in an area where $250,000 income is considered what's needed to buy a median-priced home, a million dollar net worth doesn't mean too much unless you move to an area where it does. A million dollar net worth means a lot more in Minot ND than it does in San Jose CA.
I think there's an argument amongst financial planners and media types about how much you should actually have to retire.....I think a lot of it can break down to wanting to maintain your previous lifestyle versus being retired. Personally, when I'm retired...I'm retired and not looking to get 85% of my previous income as I'll be spending a lot less.
I think there's an argument amongst financial planners and media types about how much you should actually have to retire.....I think a lot of it can break down to wanting to maintain your previous lifestyle versus being retired. Personally, when I'm retired...I'm retired and not looking to get 85% of my previous income as I'll be spending a lot less.
Originally Posted by 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
How much do you have invested in the private client account ?
I ask because you mentioned it....
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
How much do you have invested in the private client account ?
I ask because you mentioned it....
4WD
$50 site donor 2024
Originally Posted by JeffKeryk
I find this post and replies very interesting...
Thought provoking... Mind blowing, almost.
Not sure what you mean - but a million bucks is certainly not much where you live
I find this post and replies very interesting...
Thought provoking... Mind blowing, almost.
Not sure what you mean - but a million bucks is certainly not much where you live
You can't even pay off a house with only 1M, it is not "rich" anymore. I'd say 10M+ is the new definition of "rich".
Originally Posted by PandaBear
You can't even pay off a house with only 1M, it is not "rich" anymore. I'd say 10M+ is the new definition of "rich".
I'd call that very wealthy. lol It's all a play on words. Considering if true, that 1 in 20 Americans are millionaires I'd say anything over 25M is rich.
You can't even pay off a house with only 1M, it is not "rich" anymore. I'd say 10M+ is the new definition of "rich".
I'd call that very wealthy. lol It's all a play on words. Considering if true, that 1 in 20 Americans are millionaires I'd say anything over 25M is rich.
Originally Posted by 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.
My only issue is I am the sole source of support/breadwinner for my family, and the only person with health insurance (through work). At the beginning of this year I had considered changing jobs to try to get around 40-45 hours a week, which would have likely left me without health insurance for a short time (or COBRA for a fair amount). Mrs. "Bullwinkle" had a stroke, spent a few days in the hospital, would have cost some major $ & made finding new health insurance tougher. I'm probably just going to keep working as long as possible, too many techs in my field seem to pass on shortly after they retire, not sure why.
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.
My only issue is I am the sole source of support/breadwinner for my family, and the only person with health insurance (through work). At the beginning of this year I had considered changing jobs to try to get around 40-45 hours a week, which would have likely left me without health insurance for a short time (or COBRA for a fair amount). Mrs. "Bullwinkle" had a stroke, spent a few days in the hospital, would have cost some major $ & made finding new health insurance tougher. I'm probably just going to keep working as long as possible, too many techs in my field seem to pass on shortly after they retire, not sure why.
If your net worth is $1M but you owe $1M, you go to work every day just like everyone else.
Originally Posted by 4WD
Originally Posted by JeffKeryk
I find this post and replies very interesting...
Thought provoking... Mind blowing, almost.
Not sure what you mean - but a million bucks is certainly not much where you live
This post makes me remember when $10 was a lotta money. Actually, it still seems like a lot.
Like you, I will do not want to say what I am worth, but it is really weird that $1M seems like not very much $$.
10 times that is getting there...
And reading others talk about much less puts things in perspective.
Finally, my $$ is not who I am. I am just someone bumbling through life.
But I do plan on continuing doing good things with the blessings I have.
Originally Posted by JeffKeryk
I find this post and replies very interesting...
Thought provoking... Mind blowing, almost.
Not sure what you mean - but a million bucks is certainly not much where you live
This post makes me remember when $10 was a lotta money. Actually, it still seems like a lot.
Like you, I will do not want to say what I am worth, but it is really weird that $1M seems like not very much $$.
10 times that is getting there...
And reading others talk about much less puts things in perspective.
Finally, my $$ is not who I am. I am just someone bumbling through life.
But I do plan on continuing doing good things with the blessings I have.
4WD
$50 site donor 2024
Originally Posted by JeffKeryk
Originally Posted by 4WD
Originally Posted by JeffKeryk
I find this post and replies very interesting...
Thought provoking... Mind blowing, almost.
Not sure what you mean - but a million bucks is certainly not much where you live
This post makes me remember when $10 was a lotta money. Actually, it still seems like a lot.
Like you, I will do not want to say what I am worth, but it is really weird that $1M seems like not very much $$.
10 times that is getting there...
And reading others talk about much less puts things in perspective.
Finally, my $$ is not who I am. I am just someone bumbling through life.
But I do plan on continuing doing good things with the blessings I have.
Understood - some in my inner circle have lost perspective -
It was apparent when folks learned to express earnings/wants/needs as $__K rounded up to the nearest $K
I'm the one still hauling aluminum cans to sell for a few bucks and feel good for not putting them in the bin.
Originally Posted by 4WD
Originally Posted by JeffKeryk
I find this post and replies very interesting...
Thought provoking... Mind blowing, almost.
Not sure what you mean - but a million bucks is certainly not much where you live
This post makes me remember when $10 was a lotta money. Actually, it still seems like a lot.
Like you, I will do not want to say what I am worth, but it is really weird that $1M seems like not very much $$.
10 times that is getting there...
And reading others talk about much less puts things in perspective.
Finally, my $$ is not who I am. I am just someone bumbling through life.
But I do plan on continuing doing good things with the blessings I have.
Understood - some in my inner circle have lost perspective -
It was apparent when folks learned to express earnings/wants/needs as $__K rounded up to the nearest $K
I'm the one still hauling aluminum cans to sell for a few bucks and feel good for not putting them in the bin.
income and expenses
&
assets and liabilities
The only thing I can't by more of is time...
Based upon my calculations I'll run out of each concurrently.
&
assets and liabilities
The only thing I can't by more of is time...
Based upon my calculations I'll run out of each concurrently.
Originally Posted by 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 $$ to retire with, I would consider going to another country where you can live decently for $2500/month. Dominican Republic, Portugal and other countries.
I retired on a defined benefit pension about 3 years ago with healthcare 90% paid from my years on the Fire department. I have seriously looked at Portugal myself for a while just as a change of pace.
People without a defined pension (most people who are still working) will need $1.5M to retire and live a similar lifestyle. So say some recent articles. A lot to save in a 401K or IRA.
If I did not have a lot of $$ to retire with, I would consider going to another country where you can live decently for $2500/month. Dominican Republic, Portugal and other countries.
I retired on a defined benefit pension about 3 years ago with healthcare 90% paid from my years on the Fire department. I have seriously looked at Portugal myself for a while just as a change of pace.
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The only time in my life I'll be worth a million is if I take out a life insurance policy and croak.
I'm 30, single, no kids. I make $80k/yr, own a house worth ~$200k, owe ~$120k on it. Finance a car, not worth anything. Have maybe $20k in an IRA. $15k in credit card debt. I'm not rich, I'm barely middle class, and I work mu butt off to maintain it.
But... it beats being on food stamps.
I'm 30, single, no kids. I make $80k/yr, own a house worth ~$200k, owe ~$120k on it. Finance a car, not worth anything. Have maybe $20k in an IRA. $15k in credit card debt. I'm not rich, I'm barely middle class, and I work mu butt off to maintain it.
But... it beats being on food stamps.
Originally Posted by 14Accent
The only time in my life I'll be worth a million is if I take out a life insurance policy and croak.
I'm 30, single, no kids. I make $80k/yr, own a house worth ~$200k, owe ~$120k on it. Finance a car, not worth anything. Have maybe $20k in an IRA. $15k in credit card debt. I'm not rich, I'm barely middle class, and I work mu butt off to maintain it.
But... it beats being on food stamps.
You're not that far away although by the time you retire, having a million isn't going to be anywhere near what it's worth today. Still, you could always save more as your income increases.
If you use this calculator, punch in a start of 20k with a 500 monthly investment (6k max for IRA) you end up with about a million if you use the time frame from 1989 to 2019 which is the last 30 years of stock market returns of the S&P 500 which includes a couple of stock market adjustments.
https://dqydj.com/sp-500-periodic-reinvestment-calculator-dividends/
The only time in my life I'll be worth a million is if I take out a life insurance policy and croak.
I'm 30, single, no kids. I make $80k/yr, own a house worth ~$200k, owe ~$120k on it. Finance a car, not worth anything. Have maybe $20k in an IRA. $15k in credit card debt. I'm not rich, I'm barely middle class, and I work mu butt off to maintain it.
But... it beats being on food stamps.
You're not that far away although by the time you retire, having a million isn't going to be anywhere near what it's worth today. Still, you could always save more as your income increases.
If you use this calculator, punch in a start of 20k with a 500 monthly investment (6k max for IRA) you end up with about a million if you use the time frame from 1989 to 2019 which is the last 30 years of stock market returns of the S&P 500 which includes a couple of stock market adjustments.
https://dqydj.com/sp-500-periodic-reinvestment-calculator-dividends/
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