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      06-21-2021, 04:28 PM   #1
flybigjet
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What net worth do you consider "wealthy" nowadays?

My wife and I were discussing this the other day and I thought I'd get The Collective's view on things--

With the general rise in prices of, well..... pretty much everything, erosion of purchasing power, etc.--

At what net worth would you consider yourself (and your family) to be wealthy?

And to keep it simple, let's consider net worth to be lien/loan-free assets, equity in a home, and savings/investments. Salary/pension/401k are excluded as anything that you haven't spent would show up in savings/investments (e.g. if you're grossing $1M/year, but spend $990,000 of it, I'm not counting that as wealthy as you're living hand to mouth).

Basically total worth minus total debt.

I'm curious to see what others think-- What's your definition of "wealthy"?

R.
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      06-21-2021, 04:34 PM   #2
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Depends on age and lifestyle. $1 million is pretty stout if you’re 18,
but not enough for a very comfortable retirement at 62.

If the definition of wealthy is that the wealth produces enough income that you never have to work or worry about inflation or market swings, then it is probably at least $5 million and could be a lot more if you have an expensive lifestyle to maintain.

Obviously a more modest lifestyle could require less, but then I don’t think we’d call that wealthy - maybe comfortable?
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      06-21-2021, 04:39 PM   #3
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I've always considered "wealthy" to be free from having to work. If you can afford to live without needing to work, or needing someone else to support you, then you are wealthy.
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      06-21-2021, 04:43 PM   #4
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Originally Posted by 2000cs View Post
If the definition of wealthy is that the wealth produces enough income that you never have to work or worry about inflation or market swings, then it is probably at least $5 million and could be a lot more if you have an expensive lifestyle to maintain.
Funnily enough, $5M is the exact number I came up with myself to have in the bank/investments before I can even consider retiring.
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Last edited by flybigjet; 06-21-2021 at 04:48 PM..
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      06-21-2021, 04:48 PM   #5
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Quote:
Originally Posted by Fly320s View Post
I've always considered "wealthy" to be free from having to work. If you can afford to live without needing to work, or needing someone else to support you, then you are wealthy.
Mmmmm-- maybe not?


My best friend just..... doesn't want to work, despite having a degree in electrical engineering.

He has some savings (although I suspect he's playing around in the market a bit), and he might..... MIGHT have enough investment income to cover his (tiny) mortgage, utilities, food, etc. (although I think Covid Unemployment money might be bridging the gap).

He's been doing this for about five years or so now, so I guess he can "afford to live without needing to work", but he drives a beater of a 15 year-old car, lives in a dilapidated house and would probably be pushed to bankruptcy if he took his girlfriend out to a fancy dinner and show.

Although he meets your definition, I'd hardly call him wealthy.

An idiot maybe, but not wealthy.
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      06-21-2021, 04:59 PM   #6
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> $500k high income
> $1M rich
> $25M super rich
> $100M wealthy
> $1B ultra wealthy
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      06-21-2021, 05:01 PM   #7
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Also varies GREATLY on where you live. If you had 5 mil in Missouri with no debt - you could live VERY comfortably on just the interest alone. 2 Mil would work if you didn't get out of control.

Malibu - probably not.
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      06-21-2021, 05:05 PM   #8
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My goal is 3.1 for me alone, probably 5 for a partner, just to retire comfortably.

I'd say 7-10 would be my "wealthy" range at 40.
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      06-21-2021, 05:16 PM   #9
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I take a more practical approach here than most people...
Let's assume, I had a 500K home (paid off) and another $2.5M to live off of for 25 years ($100K a year) if I retired at 50... that's a $3M net worth... the math works for me there... remember, the Goal is to bounce your last check.
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      06-21-2021, 05:19 PM   #10
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Quote:
Originally Posted by ASAP View Post
I take a more practical approach here than most people...
Let's assume, I had a 500K home (paid off) and another $2.5M to live off of for 25 years ($100K a year) if I retired at 50... that's a $3M net worth... the math works for me there... remember, the Goal is to bounce your last check.
That's in the zone from where I'm sitting.
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      06-21-2021, 05:41 PM   #11
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^^ Agreed, kids will find their way. Walking away next summer and moving to South Carolina, closing on the new house in July.
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      06-21-2021, 06:45 PM   #12
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Quote:
Originally Posted by ASAP View Post
I take a more practical approach here than most people...
Let's assume, I had a 500K home (paid off) and another $2.5M to live off of for 25 years ($100K a year) if I retired at 50... that's a $3M net worth... the math works for me there... remember, the Goal is to bounce your last check.
How old are you?

If you had $2.5m in retirement account you could live off more than $100k a year and never once touch that $2.5m.
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      06-21-2021, 07:09 PM   #13
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too many variables to account for. this thread will go to shit quickly.
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      06-21-2021, 07:13 PM   #14
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^ Also agree... heading down the same path as the multiple insurance threads
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      06-21-2021, 07:22 PM   #15
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Considering how much debt is floating around these days, anyone with positive net worth should feel pretty good about their position in life.
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      06-21-2021, 07:25 PM   #16
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Ideally, I'd like to aim for $2-3M in retirement and live off the income, but I truly don't see that happening. But that's what I would consider wealthy I guess.
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      06-21-2021, 07:37 PM   #17
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Quote:
Originally Posted by 2 SLOW View Post
How old are you?

If you had $2.5m in retirement account you could live off more than $100k a year and never once touch that $2.5m.
I mean I am assuming that's what I would have when I am 55... I am 33 now... so in theory you're right, 2.5M may be too much.
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      06-21-2021, 08:17 PM   #18
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The thread started as "what's wealthy", yet it turned to retirement needs. Kind of interesting… : )

If you have money for retirement, you're wealthy in my book. And incredibly blessed too.

I'd say $3M gets you into the "wealthy status" and it's my goal for retirement. So when I add social security on top, and have no debt, beyond one small car payment, I'd consider my life lucky and blessed.

Hopefully being healthy also to somewhat enjoy it.
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      06-21-2021, 08:35 PM   #19
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"Wealthy" is subjective.

Net worth has an accepted definition: Assets - Liabilities = Net Worth.

Income is not in the equation for net worth. To increase net worth, earned income (wages) may, or may not, be required.

2020 U.S. Net Worth percentiles:
1% $11m+
10% $1.2m+
50% $121k+
25% $12k+

https://dqydj.com/average-median-top...h-percentiles/

Net worth and retirement planning are exhaustively addressed on bogleheads and early-retirement sites. A core aspect of retirement planning is being honest with how much your living expenses are costing you. It's like being honest with the number and type of calories you eat. Your bank account knows how much you spend, even if you don't, or pretend you don't.
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      06-21-2021, 08:49 PM   #20
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Quote:
Originally Posted by flybigjet View Post
My wife and I were discussing this the other day and I thought I'd get The Collective's view on things--

With the general rise in prices of, well..... pretty much everything, erosion of purchasing power, etc.--

At what net worth would you consider yourself (and your family) to be wealthy?

And to keep it simple, let's consider net worth to be lien/loan-free assets, equity in a home, and savings/investments. Salary/pension/401k are excluded as anything that you haven't spent would show up in savings/investments (e.g. if you're grossing $1M/year, but spend $990,000 of it, I'm not counting that as wealthy as you're living hand to mouth).

Basically total worth minus total debt.

I'm curious to see what others think-- What's your definition of "wealthy"?

R.
Wealthy is just a word that has different meanings lol.

We…consider ourselves wealthy because:
Fixed up the house in the city, rented it out, and let the renters pay the mortgage.
Moved into deceased mother in law's house on 15 acres in the country, 1965 4 bedroom ranch house, fixed it up nice..

No gotdamn debt. No creating new debt.
No gotdamn nosey neighbor staring from his yard across the street when I step out the front door.
No gotdamn neighbor's dog barking when he hears me step into the back yard
No HOA, my grass grows as high as I want. (still got to watch the rental though)
Got the reasonable USED cars we wanted don't owe on them
Got the reasonable USED toys we wanted, don't owe on them
Kept the credit cards, paid them off, laugh at the letters begging us to use them!
Made the house efficient and free of unnecessary luxuries
Got food walking around and growing in the yard, eggs, meat, and a most veggies we can grow all come from the house.
Walk out the front door and see nothing but what we own.
Still go to work…… but can quit right now and still keep things going for 15 years
Ability to help others in need
Worry less about health insurance.
Worry less about trees hitting the house
Worry less about busted pipes
Worry less about retirement.
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      06-21-2021, 08:53 PM   #21
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I’m worth more dead than alive.
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      06-21-2021, 08:54 PM   #22
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that's what I consider wealthy

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