How much money you have to earn to be considered rich in DFW? (Van: buying, school)

[ufcrules1]

Originally Posted by TurtleCreek80

Dictionary definition of rich: having a great deal of money or assets; wealthy.

Ok, what is a "Great deal of money or assets" exactly? Everyone has a different opinion of it. Your household income is in the mid six figures, congrats, your family is doing well but can you and your spouse stop working and retire right now? No? You are forced to work? Then I don't think you are "rich". If you answered yes, then I truly consider you rich. It sounds like that is shocking to you and you simply can't believe it. I disagree with your opinion but at the same time know it is a subjective topic that is very debatable.

[ufcrules1]

Originally Posted by EDS_

1. We simply disagree across this topic.

2. There is a vast gulf between someone/a couple earning $700K and the 1,000 richest families in America. My definition of rich is $20/25MM net worth or so. The 1,000th richest person in the US has a net worth of around $750MM. Depending upon whom you believe there are roughly 156,000 US families worth $25MM or more.

The ortho-surgeon making $700K or so with three kids in private K-12 wondering if s/he'll have to borrow money if one of the kids gets into Harvard and another into Harvey Mudd isn't rich. The guy sitting in a coffee shop in Sterling City writing a $5MM check to muscle in on an oil deal is.

Further tho, an ortho-doc who has earned $700K for a few decades with prudent investing may become rich.

You and I have similar views on what is truly rich.

[tcualum]

I think it depends on how much of your assets are easily liquidated. We look much wealthier than we are because we own part of several businesses. Because of the ownership agreements, we can't easily liquidate our part of the businesses so the businesses don't affect our income on a day-to-day basis. Hopefully, we will eventually sell them at a profit but that's not guaranteed.

[ufcrules1]

Originally Posted by tcualum

I think it depends on how much of your assets are easily liquidated. We look much wealthier than we are because we own part of several businesses. Because of the ownership agreements, we can't easily liquidate our part of the businesses so the businesses don't affect our income on a day-to-day basis. Hopefully, we will eventually sell them at a profit but that's not guaranteed.

Good point. Defining the word rich can be very tricky.

[ThomasCrown]

It takes ~$11 million in net worth to be in the top 1% of household wealth. It's like $6 mil to be in the top 2%, and $3 mil to be top 5%... We all have different ideas of what it means to be rich, but for most people, being in the top 5% is a pretty good life to have. No, you may not be able to quit your job on a whim early in life, but that is often more about your standard of living/expenses than actually having the ability to quit your job and live off your money. I bet a lot of us on here could retire early if we were willing to move to a place, probably a foreign country, with a low cost of living.

[ufcrules1]

Originally Posted by ThomasCrown

It takes ~$11 million in net worth to be in the top 1% of household wealth. It's like $6 mil to be in the top 2%, and $3 mil to be top 5%... We all have different ideas of what it means to be rich, but for most people, being in the top 5% is a pretty good life to have. No, you may not be able to quit your job on a whim early in life, but that is often more about your standard of living/expenses than actually having the ability to quit your job and live off your money. I bet a lot of us on here could retire early if we were willing to move to a place, probably a foreign country, with a low cost of living.

When I said not work, I am not referring to going and living in a poorer country. I am also not talking about moving to a lower cost of living state or city in the US. I am talking about living a similar type lifestyle you are living today and you do not have to work for the rest of your life. That is my definition of rich.

6+ million and no debts at all would be enough to to that.

[Hunter&Stewart]

Last week we missed a turn off Randol Mill Ave in Keller and ended up on this road with homes that has multiple garages (one has as many as 8 garages) and some homes with enough acreage to let their horses run around in the front yard. It could be that this is the typical standard of living in Keller as we are used to the cookie-cutter subdivision type of homes south of I-20, but I think if you can afford/maintain/stock these houses with quality furniture and fill the garages with classic/collector cars, then I think you have made it in DFW (and maybe in other states also) no matter what income bracket you are in.

[Dr. Jake Oil]

Originally Posted by EDS_

1. We simply disagree across this topic.

2. There is a vast gulf between someone/a couple earning $700K and the 1,000 richest families in America. My definition of rich is $20/25MM net worth or so. The 1,000th richest person in the US has a net worth of around $750MM. Depending upon whom you believe there are roughly 156,000 US families worth $25MM or more.

The ortho-surgeon making $700K or so with three kids in private K-12 wondering if s/he'll have to borrow money if one of the kids gets into Harvard and another into Harvey Mudd isn't rich. The guy sitting in a coffee shop in Sterling City writing a $5MM check to muscle in on an oil deal is.

Further tho, an ortho-doc who has earned $700K for a few decades with prudent investing may become rich.

How is it even remotely possible that someone making $700k even with three kids in private school is living paycheck to paycheck?

$700k gross = $500k or so take home. 3 kids in private school - lets say they're all at St. Mark's. $90k/yr. $410k left. Lets just be generous and say they live in a $2M home so their payment is about $8000/month PITI or $96k/yr. $314k left. Lets just say they love to lease expensive luxury cars, so $1500/mo for each parent. $278k left.

Note that we haven't even blown half their income, and we're down to living expenses, vacations, and disposable income, and we have $278k left.

How the hell is this family living paycheck to paycheck unless they just light money on fire?

These people are rich - they're just idiots.

[TheOverdog]

These people are rich - they're just idiots.

It's just a made up case. It's not 'real', and in those cases, they always count any and all kinds of maximized savings as gone income.

[EDS_]

Originally Posted by TheOverdog

It's just a made up case. It's not 'real', and in those cases, they always count any and all kinds of maximized savings as gone income.

Right. Anyone making $700K better be cramming into 401K/IRA and DCA'ing or similar into various long term instruments/funds.