Minimum income to be considered "Rich" (oceanfront, how much)

[walker1962]

Here's How Much You Need To Earn To Be 'Rich' in Every State | GOBankingRates

[mshultz]

They are actually talking about people with high incomes, not about people who have a high net worth. While having a high income makes it easier to obtain a high net worth, there is no amount of income that cannot be outspent.

My highest income year was not as high as the $154,076 minimum I would need for Mississippi's top 5%. However, my net worth would put me in the top 5% of most, if not all 50 states.

[elchevere]

Also, not all income is reported (tax avoidance) nor are all wealthy individuals W-2 wage earners. Income is not necessarily the best indicator nor sole source of one’s wealth. I’m a perfect example of that—early retiree living off a moderate pension income (and savings) whose liquid net worth is 100x greater that will outlive me.

Originally Posted by mshultz

They are actually talking about people with high incomes, not about people who have a high net worth. While having a high income makes it easier to obtain a high net worth, there is no amount of income that cannot be outspent.

My highest income year was not as high as the $154,076 minimum I would need for Mississippi's top 5%. However, my net worth would put me in the top 5% of most, if not all 50 states.

[Hemlock140]

I suppose income vs net worth depends on your definition of rich. One could have a net worth of 5 million and yet be living paycheck-to-paycheck, with their money tied up in various long-term investments. On the other hand, someone with an annual income of $400,000 who spends it as fast as it comes in could be struggling, with new supercars, a yacht, and mansion but unable to pay the utility bills. The article seems to base it on oncome.

Merriam-Webster says: "having abundant possessions and especially material wealth"

[elchevere]

What you described sounds like my old Wall St buddies….spent more than they otherwise would have to keep up with their comrades entertaining one another and for appearance. Was good for me when I visited NYC as my tab was usually picked up and supplemented with recreational substances and women.

Originally Posted by Hemlock140

I suppose income vs net worth depends on your definition of rich. One could have a net worth of 5 million and yet be living paycheck-to-paycheck, with their money tied up in various long-term investments. On the other hand, someone with an annual income of $400,000 who spends it as fast as it comes in could be struggling, with new supercars, a yacht, and mansion but unable to pay the utility bills. The article seems to base it on oncome.

Merriam-Webster says: "having abundant possessions and especially material wealth"

[BajanYankee]

Putting aside examples of high income people living well beyond their means, I'd say a salary anywhere in the 7 figures puts to rest any argument that a person is not "rich." Most people think they are middle class, or at best, upper middle class, even if they have a household income of $800K. Once you're making $1.5 million per year, I don't think you can avail yourself of those arguments anymore. Of course, almost any amount of fortune could be squandered (unless you're talking Bezos and Gates fortunes), but I think "rich" in 21st Century America starts in the 7 figures.

[BajanYankee]

Originally Posted by Hemlock140

I suppose income vs net worth depends on your definition of rich. One could have a net worth of 5 million and yet be living paycheck-to-paycheck, with their money tied up in various long-term investments. On the other hand, someone with an annual income of $400,000 who spends it as fast as it comes in could be struggling, with new supercars, a yacht, and mansion but unable to pay the utility bills. The article seems to base it on oncome.

Merriam-Webster says: "having abundant possessions and especially material wealth"

Is $5 million really that high? There are a lot of retirees who have gotten to $3-$5 million through investing wisely and diligently contributing to a 401K.

I would say "rich" starts when you can comfortably engage in a not insignificant degree of philanthropy. This could range from "generous" and regular contributions to foundations, not for profits and charitable organizations (6-figure checks every year) to funding the construction of a library for the local university. The retiree with a 7-figure net worth can leave a pretty penny to his/her heirs, but he/she cannot make large, consistent donations to charities without suffering a significant blow to their net worth. They probably won't be on the Central Park Conservancy's short list of donors.

[elchevere]

I would say $3-5M net worth is somewhat comfortable for a single person; not so for a couple, particularly with children and living in a coastal city….I would say “rich” starts at $10M net worth (gives most the opportunity to own a vacation home and/or yacht—not at $3-5M, boat maybe, not a yacht). What you described below, with philanthropic donations, is what I would call “ultra rich”, something an old friend of mine who lives in a $40M oceanfront home in Jupiter, recently donated $3.5M of art to a university, belongs to a country club, and supports a local religious organization on an annual basis is.

Originally Posted by BajanYankee

Is $5 million really that high? There are a lot of retirees who have gotten to $3-$5 million through investing wisely and diligently contributing to a 401K.

I would say "rich" starts when you can comfortably engage in a not insignificant degree of philanthropy. This could range from "generous" and regular contributions to foundations, not for profits and charitable organizations (6-figure checks every year) to funding the construction of a library for the local university. The retiree with a 7-figure net worth can leave a pretty penny to his/her heirs, but he/she cannot make large, consistent donations to charities without suffering a significant blow to their net worth. They probably won't be on the Central Park Conservancy's short list of donors.

[BajanYankee]

Originally Posted by elchevere

I would say $3-5M is comfortable for a single person; not so for a couple, particularly with children and living in a coastal city….I would say “rich” starts at $10M (gives most the opportunity to own a vacation home and/or yacht—not at $3-5M, boat maybe, not a yacht). What you described below, with philanthropic donations, is what I would call ultra rich, something an old friend of mine who lives in a $40M oceanfront home in Jupiter, recently donated $3.5M of art to a university, and supports a local religious organization on an annual basis is.

I think you can have a net worth of $3-5M and not feel rich at all if most of that wealth is tied up in pre-tax retirement accounts and other things that can't be that easily liquidated. If you're in your 50s and living on the Coasts among other educated professionals, you're not going to feel like some outlier among your peer group. I think that's sort of the expectation for any upper middle class professional who has had solid earnings for 30+ years. I would say that this person is doing well, but I wouldn't necessarily say they are "rich."

Remember, as I said above, "rich" could mean "generous" annual contributions, not just giving a $1M+ one-time gift. In other words, it's a range. At a minimum, however, it's someone who can part with a substantial amount of money every year and continue to live an upper middle class lifestyle with relative ease (multiple first-class flights overseas, club memberships, private school tuition for children/grandchildren, additional homes...all on top of making large charitable donations).

I think it's also the ultimate flex. A lot of people can afford to buy an additional home, a couple of really nice cars, etc. Very few will ever their name on a wall at their local concert hall/opera house/university. At a certain point in life, it becomes more about the recognition and prestige you get from giving money away, which is something only rich people can really do.

[elchevere]

I will start with something simple like a park bench plaque at Madison Square Park or on the Long Beach boardwalk.

Originally Posted by BajanYankee

I think you can have a net worth of $3-5M and not feel rich at all if most of that wealth is tied up in pre-tax retirement accounts and other things that can't be that easily liquidated. If you're in your 50s and living on the Coasts among other educated professionals, you're not going to feel like some outlier among your peer group. I think that's sort of the expectation for any upper middle class professional who has had solid earnings for 30+ years. I would say that this person is doing well, but I wouldn't necessarily say they are "rich."

Remember, as I said above, "rich" could mean "generous" annual contributions, not just giving a $1M+ one-time gift. In other words, it's a range. At a minimum, however, it's someone who can part with a substantial amount of money every year and continue to live an upper middle class lifestyle with relative ease (multiple first-class flights overseas, club memberships, private school tuition for children/grandchildren, additional homes...all on top of making large charitable donations).

I think it's also the ultimate flex. A lot of people can afford to buy an additional home, a couple of really nice cars, etc. Very few will ever their name on a wall at their local concert hall/opera house/university. At a certain point in life, it becomes more about the recognition and prestige you get from giving money away, which is something only rich people can really do.