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How rich is rich?
Old 08-09-2010, 12:37 PM   #1
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How rich is rich?

Not quite sure why I'm sharing this article on CNNMoney.com, because it's yet another example of worthless financial journalism.

You know you're in trouble when the example is a 35-year-old retiree who needs to generate $300,000 annually from investments (or in the "low cost" part of the country, $100,000). How many early retirees retire that early and need that much?

In the end, the article comes to the earth-shattering conclusion that the amount you need to have saved will vary considerably depending on your spending. A mere $2 million to $12 million should do it, the writer flippantly reports.
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Old 08-09-2010, 12:40 PM   #2
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Yeah, but I do like Ms. Veale's comment with respect to the question, even though I think her "number" was absurd:

Quote:
"I'd like to have enough money so my family and I wouldn't have to work anymore or worry about the necessities, and maybe travel a bit"
That pretty much nails it for me. I don't need a lot, but I need enough to feel secure in what I do need.

Of course, I disagree with her assessment that you need $10 million to achieve the quoted lifestyle.
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Old 08-09-2010, 12:50 PM   #3
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Originally Posted by wishin&hopin View Post
Not quite sure why I'm sharing this article on CNNMoney.com, because it's yet another example of worthless financial journalism.

You know you're in trouble when the example is a 35-year-old retiree who needs to generate $300,000 annually from investments (or in the "low cost" part of the country, $100,000). How many early retirees retire that early and need that much?
I wonder how many of those are paying for their own health insurance. We cut a check every month for about $1,200 of after-tax money. That's a present value of something like $360,000 at 4% for life. Glad we will hopefully get some relief from Medicare in 4-5 years. Maybe.

That'll make them feel "less rich" pretty quickly.
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Old 08-09-2010, 12:53 PM   #4
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Trying to define "rich" is a crapshoot. It's kinda like trying to define "old", "fat" and "good looking". Much is in the eye of the beholder.
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Old 08-09-2010, 12:54 PM   #5
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Originally Posted by Rich_in_Tampa View Post
I wonder how many of those are paying for their own health insurance. We cut a check every month for about $1,200 of after-tax money. That's a present value of something like $360,000 at 4% for life. Glad we will hopefully get some relief from Medicare in 4-5 years. Maybe.

That'll make them feel "less rich" pretty quickly.
I don't think that many people even know the real total cost of their premiums.

You better get Medicare - we're just a few years behind you and we can't if you can't. Just make sure to leave some. Please...
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Old 08-09-2010, 02:34 PM   #6
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If were talking 'rich' as in having a 10k sq foot home with butlers, maids, cooks, etc.......with homes scattered through out the world, then were talking millions and millions on top of that. But if were simply talking about living without the need to work, that is another. And that is my definition of rich.
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Old 08-09-2010, 02:41 PM   #7
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Ever had a cannoli...talk about rich...mmmmm.....

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Old 08-09-2010, 02:42 PM   #8
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Trying to define "rich" is a crapshoot. It's kinda like trying to define "old", "fat" and "good looking". Much is in the eye of the beholder.
Actually I think it's pretty simple. If you don't work and your cash outflows are consistently less than your cash inflows you are rich.

Obviously each individual’s absolute definition of “rich” will be different.
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Old 08-09-2010, 03:04 PM   #9
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Originally Posted by FIREdreamer View Post
Trying to define "rich" is a crapshoot. It's kinda like trying to define "old", "fat" and "good looking". Much is in the eye of the beholder.
Well just to nitpick. The article was how much (money) would it take for you yourself to "feel" rich. They went through the caveats on cost of living and your expected spending.

Then they concluded it would take between $2-20M for you to "feel" rich.
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How rich is Rich?
Old 08-09-2010, 03:17 PM   #10
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How rich is Rich?

Ask him, he is in the room right now.

Ha
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Old 08-09-2010, 04:20 PM   #11
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Originally Posted by FIREdreamer View Post
Trying to define "rich" is a crapshoot. It's kinda like trying to define "old", "fat" and "good looking". Much is in the eye of the beholder.

Just like a contact lens !
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Old 08-09-2010, 10:17 PM   #12
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Actually I think it's pretty simple. If you don't work and your cash outflows are consistently less than your cash inflows you are rich.

Obviously each individual’s absolute definition of “rich” will be different.
I like your definition.
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Old 08-09-2010, 11:05 PM   #13
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Albeit wealth is relative, the new standard is $5M or more net worth not including primary residence.
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