|
|
$2.27 million to feel wealthy - 3% withdrawal rate
06-05-2019, 07:41 AM
|
#1
|
Recycles dryer sheets
Join Date: Apr 2015
Posts: 100
|
$2.27 million to feel wealthy - 3% withdrawal rate
Just another fluff piece, but this year's survey says it takes $2.27 million to feel wealthy.
https://www.cnn.com/2019/05/31/succe...thy/index.html
What I found most interesting though is this:
"For many people, being wealthy means being financially independent and not having to work for a living, says Bradley Nelson, of Lyon Park Advisors. He says a family with a net worth of $2.27 million could easily be wealthy.
If that family spent a conservative 3% of their assets each year, they would have $68,100 a year to live on. That's more than the median household income in the United States of $61,000 -- without even having to work."
Notice the 3% in there? I'm surprised to see it in a mainstream publication instead of the typical 4%.
The full report with a lot more statistics is here for the statistic hounds:
https://content.schwab.com/web/retai...-0519-9JBP.pdf
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
06-05-2019, 07:45 AM
|
#2
|
Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,593
|
Quote:
Originally Posted by AnonEMouse
....it takes $2.27 million to feel wealthy.....
|
It would take a lot more than that at our house to feel wealthy.
|
|
|
06-05-2019, 07:57 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
|
I would feel wealthy with half that but i'm single and have always been a low spender since I have never made $50K+/yr in my life.
|
|
|
06-05-2019, 07:58 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2014
Posts: 7,372
|
I retired 5 years ago in a LCOL area with about $2.6 million, and it's now a little over $3 million. I don't think of myself as "wealthy" because I drive a 7-year old Nissan Sentra, bought used, I'm wearing a T-shirt right now that's over 30 years old, I get my hair cut at Great Clips, etc. Ah, but then there's my travel budget.
Yes, I guess I AM wealthy. I prefer to be quiet about it, though.
|
|
|
06-05-2019, 07:58 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by Ronstar
It would take a lot more than that at our house to feel wealthy.
|
+1
The more you have, the more it takes to feel wealthy.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
06-05-2019, 08:16 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,718
|
Does $2.27m include a home equity? I hope not. $2.2m CASH would be a little different.
Disclaimer, this is my initial observation based on the OP, I have not read the whole article yet.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
|
|
|
06-05-2019, 08:22 AM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Yes. One needs to have $2.2M in cash, as a buffer to the stock/bond AA to feel wealthy.
Now, that would be RICH!
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
06-05-2019, 08:26 AM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,396
|
Quote:
Originally Posted by AnonEMouse
He says a family with a net worth of $2.27 million could easily be wealthy. If that family spent a conservative 3% of their assets each year, they would have $68,100 a year to live on.
|
Does he understand the difference between net worth and liquid savings and investments?
A family with a net worth of $2.2 million may have a house worth $500,000 and savings of $1.7 million, and their withdrawal rate would be 4%, not 3%.
|
|
|
06-05-2019, 08:29 AM
|
#9
|
Recycles dryer sheets
Join Date: May 2018
Posts: 177
|
Quote:
Originally Posted by NW-Bound
Yes. One needs to have $2.2M in cash, as a buffer to the stock/bond AA to feel wealthy.
Now, that would be RICH!
|
....until you factor in the cost of healthcare. Fix my HC costs until medicare age and I'm finished...otherwise
|
|
|
06-05-2019, 08:31 AM
|
#10
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,929
|
Well over that just in cash and I don't feel wealthy. Comfortable yes, but not wealthy.
|
|
|
06-05-2019, 08:32 AM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Jun 2014
Posts: 1,192
|
I think my definition of wealthy if very different than the articles.. I mean being able to generate slightly above the average American salary puts one in upper middle class, not wealthy status.
To me wealthy means never having to look at what something costs before you buy it. $68k would still require a fair amount of budgeting.
I think you have to be uber-wealthy before you buy your own jet and own a yacht with staff, but a wealthy person should be able to fly first class, go to galas, get an expensive hobby, etc without limits.. no way you are doing that on the numbers they proposed.
Of course, MOST Americans will never get anywhere close to $2.27M so for them they think they would feel wealthy until they have that and the harsh reality of "but you are not" sets in. I call it comfortable, someone with $2.27 is comfortable and can get nice things occasionally and doesn't struggle day to day.
|
|
|
06-05-2019, 08:33 AM
|
#12
|
Thinks s/he gets paid by the post
Join Date: Jun 2014
Posts: 1,192
|
Quote:
Originally Posted by Car-Guy
Well over that just in cash and I don't feel wealthy. Comfortable yes, but not wealthy.
|
Ha funny we both thought the same word at the same time.
|
|
|
06-05-2019, 09:14 AM
|
#13
|
Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,346
|
Wealthy where the median income is $115,000, or wealthy where it's $20,000?
__________________
I thought growing old would take longer.
|
|
|
06-05-2019, 09:20 AM
|
#14
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by ShokWaveRider
Does $2.27m include a home equity? I hope not. $2.2m CASH would be a little different.
Disclaimer, this is my initial observation based on the OP, I have not read the whole article yet.
|
Quote:
Originally Posted by NW-Bound
Yes. One needs to have $2.2M in cash, as a buffer to the stock/bond AA to feel wealthy.
Now, that would be RICH!
|
Quote:
Originally Posted by Car-Guy
Well over that just in cash and I don't feel wealthy. Comfortable yes, but not wealthy.
|
When an earlier poster says $2.2M in CASH (in capital), I take that as cash in addition to stocks and bonds, like in an AA of 60% stock, 35% bond, 5% cash.
If I had that, yes I would feel rich. And I would not worry about healthcare cost.
PS. But then, someone with that still could not afford a real yacht nor a jet, which is more than his total networth. He might not feel rich either.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
06-05-2019, 11:00 AM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,298
|
If one has 2.2m in investments plus some SS and possibly pensions, one might not be wealthy but could be very comfortable.
__________________
TGIM
|
|
|
06-05-2019, 11:10 AM
|
#16
|
Thinks s/he gets paid by the post
Join Date: Jul 2015
Posts: 1,103
|
Nuts, I already thought I was wealthy, sitting here in my PJ's at noon still drinking coffee on the deck! I feel rich just workin' at nothin' all day.
With 2.27 mil I'd really go crazy, like move to San Diego, or at least buy an RV or, heaven forbid, a boat. Oh well, folks always said I was a slow learner...
__________________
Living the dream...
|
|
|
06-05-2019, 11:42 AM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,076
|
Quote:
Originally Posted by athena53
Yes, I guess I AM wealthy. I prefer to be quiet about it, though.
|
+1 We live in a +55 MHP, with a lot of people living on SS. NOBODY has any idea what we have, and we will keep it that way.
It was a little difficult last year, when we bought 2 new cars, and I made an offhand remark about car payments.
I was talking to someone the other day, who asked how long we had lived here. He said,"Do you mind if I ask you how much you paid?". I said , "yes", and that ended that discussion. At least he had the courtesy to ask.
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
|
|
|
06-05-2019, 11:48 AM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Quote:
Originally Posted by AnonEMouse
.... He says a family with a net worth of $2.27 million could easily be wealthy.
If that family spent a conservative 3% of their assets each year, they would have $68,100 a year to live on. That's more than the median household income in the United States of $61,000 -- without even having to work."
Notice the 3% in there? I'm surprised to see it in a mainstream publication instead of the typical 4%.
|
I am not surprised since 4% was for someone in their 60's and not for a family. In this context I will assume "family" means a household with school-age children iiving at home.
|
|
|
06-05-2019, 12:23 PM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by FreeBear
Nuts, I already thought I was wealthy, sitting here in my PJ's at noon still drinking coffee on the deck! I feel rich just workin' at nothin' all day.
With 2.27 mil I'd really go crazy, like move to San Diego, or at least buy an RV or, heaven forbid, a boat. Oh well, folks always said I was a slow learner...
|
With that money, if you move to SD, you can buy a little condo of less than 1,000-sq.ft.
Anything bigger, you will not have enough left to eat.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
06-05-2019, 12:30 PM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Ah, last night I was surfing youtube looking at travel videos. I watched some intrepid travelers who went to Belarus, Moldova, Southern Urals, etc.... There was a guy who ventured into the forbidden radiation zone of Chernobyl, and found an old man living there alone.
Boy, seeing how people live in this day and age makes me appreciate what I have. Just came back from a car trek through the countryside of Portugal and Spain, which was nowhere as bad as the above, I knew how people lived.
Heck, just in my extensive RV trips through the corners of US and Canada, I saw plenty too.
Rich, rich, rich... It's all a state of mind.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|