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For years, Bernie angrily called out millionaires and billionaires as greedy and rich. Now that sanders is a multi-millionaire, ironically earned from writing books on socialism, he reserves his contempt for greedy, rich billionaires.
2 Levels of rich you got "Rich" which can be achievable with a good job and some investments, doctors, engineers, etc. This type of rich generally can afford what they want within reason, live in a nice house, drive decent cars, don't worry too much about emergencies, take nice vacations - but generally still has to work/save/live somewhat within their means.
Then you have "f*** you rich" which is when you are so rich you can buy anything and almost anyone, you can spit in someones face and smack them with a stack of money big enough for them to ask you to do it again. Generally it is impossible to become "f*** you rich" by just working a good job and being smart with money, there is either a large element of luck involved or maybe some kind of shady stuff going on - or you are born into it. "F*** you rich" never has to work a job if they don't want to, and they never need to ask the price of things or wonder if they could or couldn't afford to buy something.
Did you get that from the John Goodman/Mark Wahlberg movie?
$10mil....I'd own a nice beach house, never have to work and largely do whatever I want and not worry about bills or how much a car cost, eat out every meal and not even blink...because I could pull down $500k a year in after tax income pretty easily just off the investments. Figure about $1500/day to spend, yeah I could do just fine on that.
Obviously it's a variable definition and there is rich in other ways but in a purely monetary sense rich means you don't have to work and can travel, have a great house, nice cars etc. and never have to worry about money.
It’s subjective. If you compare yourself to Billionaires then sure... 25 mill is a decent number to consider someone rich.
However, when you compare yourself to the majority of Americans or people in the world as a whole, the number is much much lower.
IMO if you can live life to the fullest without worrying about going broke you are rich.
My goal is to be worth a 750K to a Mill with no mortgage when I retire. To me that’s rich enough. I’m sure people will yap about this that and a third but I live in the south and I don’t need thousand dollar suits or a yacht.
All I need is moderate investments and enough for travel expenses. My goal is to live life to the fullest while I’m alive.
I would agree with that. To be "rich", you have to be able to live just off interest income and live a lifestyle in which budgets are not really necessary. With lower interest rates, that number is higher than it has been in the past.
I call under $20 million "beer and potato chips rich". If you have to keep working to maintain your lifestyle and healthcare, you are not rich.
I have found that you need an income over $250K before you can reliably save money without compromising your lifestyle. Over that level, you start to "coast" and are usually not worried about money. Of course, that would be different, depending on where you live.
When you make over $1 million, you would be surprised how much of that you pay in taxes; at the end of the day (with state, federal, property, ect..) it is not as much as you would think.
PS- You need a hell of a lot more than $1 million to retire.
No you don’t. This is insane.
What the hell are you trying to buy once you retire? Who are you chasing?
Well another way of putting it Mark Cuban would seem very, very wealthy till he ran into Jeff Bezos I guess wealth is all about perspective but it does not always equate to happiness.
2 Levels of rich you got "Rich" which can be achievable with a good job and some investments, doctors, engineers, etc. This type of rich generally can afford what they want within reason, live in a nice house, drive decent cars, don't worry too much about emergencies, take nice vacations - but generally still has to work/save/live somewhat within their means.
Then you have "f*** you rich" which is when you are so rich you can buy anything and almost anyone, you can spit in someones face and smack them with a stack of money big enough for them to ask you to do it again. Generally it is impossible to become "f*** you rich" by just working a good job and being smart with money, there is either a large element of luck involved or maybe some kind of shady stuff going on - or you are born into it. "F*** you rich" never has to work a job if they don't want to, and they never need to ask the price of things or wonder if they could or couldn't afford to buy something.
I call the first level "beer and potato chips" rich and the latter actual rich.
I tell my kids that we are in the "beer and potato chips" category, so that does not translate to generational wealth (i.e. you need to work). When we croak, each kid will get a few million bucks and part ownership of my farm, but that is not sustainable wealth.
Most wealth, even with very wealthy people, is gone in three generations. There are exceptions, but 95% of wealth does not last three generations.
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So say some bankers according to a Daily Mail article.
I can agree with this though 25 million may be a bit on the high side. A million dollars in the bank is what some say you need as a minimum to retire these days.
When Trump upped the estate tax requirement to eleven million dollars per person I did not have an issue with it because of what it means to be wealthy today.
Do you agree that 25 million is the new minimum standard to be considered wealthy?
I think most people would consider well off, as having a nice house and car, regular holidays (vacations), not having to work and to worry about money or finances. Also they should be able to help their children get a good start in life and a decent inheritance. I think this is what most people strive for, as you can't take your money with you when you die.
Bankers who are not generally very popular among the rest of society, and clearly have a different definition of wealth and happiness.
Last edited by Brave New World; 08-01-2019 at 07:26 AM..
$10mil....I'd own a nice beach house, never have to work and largely do whatever I want and not worry about bills or how much a car cost, eat out every meal and not even blink...because I could pull down $500k a year in after tax income pretty easily just off the investments. Figure about $1500/day to spend, yeah I could do just fine on that.
Obviously it's a variable definition and there is rich in other ways but in a purely monetary sense rich means you don't have to work and can travel, have a great house, nice cars etc. and never have to worry about money.
Yep-
$10 million is the "magic number" which can actually support you. Keep in mind that you still have to pay taxes.
However, even that $10 million can not be enough if you have a significant health problem. I have (and have) cancer X2 and cannot get decent health insurance on the open market, thus I have to keep working as a part of a group through which I can get coverage. I contacted the Blues and United and neither would write me a policy for any price.
I have significant monthly medical expenses as it is; however, if things turn "south", you can be wiped out.
So even with $10 million, you are not "secure".
PS- That nice beach house will cost about $1 million at a minimum if you have an ocean front property. I am sure there are some grimy beaches which are more affordable , but the nice ocean front properties are out of control. I used to own one and sold it, as we rarely used it. I like my farm a lot better.
Are you rich if you aren't seeing much of a return 25 million and blow through 1 million per year? You'll be broke in 25 years.
I question your math, Assuming a low return in the stock market of 4% per year, that's enough to make 1 million dollars a year, before taxes, roughly 850k per year. 25 million would last about 50 years at that spend rate.
Even if the money was in a standard saving account, paying around 2% a year, still nets you around 425k a year, the money is still going last to at least 35 years.
I would agree though at 1 million dollars is no where enough to retire on, let alone be considered wealthy. Even aggressively invested, 1 million dollars at best would earn you 80k a year on the stock market before taxes, figuring a 15% investment tax, that leaves you with 68k a year to live off of. You would have to move cheaper COL area of the country to make your money stretch very far. I think 3 million is the minimum you need to comfortably retire, conservatively invested with a 5% return, nets $127,500 after taxes.
Last edited by TechGromit; 08-01-2019 at 10:17 AM..
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