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Old 01-01-2010, 08:04 AM
 
Location: Victoria TX
42,668 posts, read 71,538,289 times
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Quote:
Originally Posted by chattypatty View Post
What is the definition of a millionaire? Is it someone who has net assets worth one million dollars? If that's the definition, then wouldn't a lot of people be considered "millionaires"?
Yes and yes.

There are 2.7-million millionaires in North America. Down from 3.3-million a year ago. America has about one-third of the world's millionaires. In the US, about one family out of 50 is a millionaire. But if you think in terms of extended family, maybe one in fifteen has at least an uncle who is a millionaire.

http://blogs.wsj.com/wealth/2009/06/...tion-drops-15/

A greeter at Walmart will earn very close to a million dollars during a lifetime of offering shopping carts. I know a WalMart greeter in Canada who makes $21K a year. If she lives at home with mom and pop and saves all her earnings, and gets enough interest to offset her taxes, she'll retire a millionaire.

A woman in my family never worked until her kids were grown, then worked as a store clerk, putting away everything she earned for 20 years, just living on her husbands earnings and then pension, and putting her savings in CDs. She left an estate worth a quarter million.

Last edited by jtur88; 01-01-2010 at 08:20 AM..
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Old 01-02-2010, 12:45 AM
 
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Quote:
Originally Posted by dazzleman View Post
The term 'millionaire' used to connote a huge amount of wealth. Sometimes, the assets used to determine millionaire status exclude primary residence.

Today, many people are millionaires and it doesn't mean all that much. Those who own homes in certain parts of the country and have them paid off, or mostly paid off, have a huge jump start on millionaire status (if the value of the home is counted).

An upper middle class person in certain parts of the country is likely to become a millionaire by a certain age today, and it certainly doesn't mean necessarily that a person is so rich as to not have to work. I've been a millionaire on paper for about 4 years now, and I'm still working.
You probably love what you do for a living and/or like to spend money for pleasure.
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Old 01-02-2010, 12:47 AM
 
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Quote:
Originally Posted by jtur88 View Post
Yes and yes.

There are 2.7-million millionaires in North America. Down from 3.3-million a year ago. America has about one-third of the world's millionaires. In the US, about one family out of 50 is a millionaire. But if you think in terms of extended family, maybe one in fifteen has at least an uncle who is a millionaire.

Millionaire Population Drops 15% - The Wealth Report - WSJ

A greeter at Walmart will earn very close to a million dollars during a lifetime of offering shopping carts. I know a WalMart greeter in Canada who makes $21K a year. If she lives at home with mom and pop and saves all her earnings, and gets enough interest to offset her taxes, she'll retire a millionaire.

A woman in my family never worked until her kids were grown, then worked as a store clerk, putting away everything she earned for 20 years, just living on her husbands earnings and then pension, and putting her savings in CDs. She left an estate worth a quarter million.

Right. Its not how much you earn its how much you have.
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Old 01-02-2010, 12:29 PM
 
Location: Fairfield, CT
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Quote:
Originally Posted by Texas User View Post
You probably love what you do for a living and/or like to spend money for pleasure.
Not really. I'm too young for my money to last long enough for me to stop working at this time.
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Old 01-02-2010, 12:36 PM
 
Location: NoVA
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Originally Posted by Tightwad View Post
<snip>

The rest of the story here............
That's damn near plagiarism from the book The Millionaire Next Door, but aside from that I totally agree.
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Old 01-02-2010, 04:19 PM
 
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Originally Posted by dazzleman View Post
Not really. I'm too young for my money to last long enough for me to stop working at this time.
$1 million should be enough to retire. This means investing conservatively.
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Old 01-02-2010, 04:29 PM
 
Location: Fairfield, CT
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Originally Posted by Texas User View Post
$1 million should be enough to retire. This means investing conservatively.
I'm afraid you don't have anywhere near enough information to make that statement. I wish you were right, and if I were 70 years ago, it might be true. But I'm 20 years away from collecting social security and being able to participate in medicare, and even if $1 million could generate enough income to live today (investing conservatively today will bring a 3% interest rate if you're lucky), there could be a lot of inflation in the next 20-30 years. And even today, there's no way I could live on $30K per year, even if I had my house paid off.
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Old 01-02-2010, 06:35 PM
 
Location: Victoria TX
42,668 posts, read 71,538,289 times
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Quote:
Originally Posted by Texas User View Post
$1 million should be enough to retire. This means investing conservatively.
You'd have to squeeze about 4% capital gain out of it, to retire as most Americans are accustomed to living. Even winning a million in the lottery would only pay $50K a year for 20 years, and most families are already locked into a lifestyle that costs over $50K. So the average person, winning a million in the lottery, wouldn't be able to quit his job.
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Old 01-02-2010, 07:02 PM
 
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Quote:
Originally Posted by jtur88 View Post
You'd have to squeeze about 4% capital gain out of it, to retire as most Americans are accustomed to living. Even winning a million in the lottery would only pay $50K a year for 20 years, and most families are already locked into a lifestyle that costs over $50K. So the average person, winning a million in the lottery, wouldn't be able to quit his job.
4% of bank interest?

You can do a lot with $50K a year for the next 20 years if you know what to do with the money.

That is because they chose to be locked in that kind of lifestyle. There are people who make under $25K a year with no debt and are doing ok.
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Old 01-02-2010, 07:05 PM
 
12,671 posts, read 20,489,997 times
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Quote:
Originally Posted by dazzleman View Post
I'm afraid you don't have anywhere near enough information to make that statement. I wish you were right, and if I were 70 years ago, it might be true. But I'm 20 years away from collecting social security and being able to participate in medicare, and even if $1 million could generate enough income to live today (investing conservatively today will bring a 3% interest rate if you're lucky), there could be a lot of inflation in the next 20-30 years. And even today, there's no way I could live on $30K per year, even if I had my house paid off.
This depends on what you do with that million dollars, how you spend it, how you invest it.

Average person in Texas makes less then $30K a year according to BLS.
There are people living on mimimum wage with no debt and are doing ok. Its all about what you do with the money.
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