Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Is $250,000 Affluent?
Old 01-19-2010, 03:55 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,881
Is $250,000 Affluent?

I have no current definition for the word affluent, but I have a sense of what it means, and it means a lot more that $250,000. I'm not sure how much above a million dollars affluent begins, but it's up there. I do not consider myself affluent, even though I have a nice stash north of a million.

What's affluent for you?

Quote:
Money isn’t everything, according to a group of affluent Americans surveyed by Merrill Lynch Wealth Management. Focusing on family and friends, it turns out, gained in importance through the recession.
Just over half of retired respondents with at least $250,000 to invest said they wished they had focused more on their “life goals” than on “the numbers,”
what-retirees-would-have-done-differently: Personal Finance News from Yahoo! Finance
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
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!

Old 01-19-2010, 04:14 PM   #2
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Well I suppose $250k is affluent relative to most Boomers who are in the hole with credit card debt.

I remember posting an article from (Fidelity ) that polled it's affluent account holders. They didn't feel rich, based on the survey, until they were wortyh $19M.
__________________

__________________
MasterBlaster is offline   Reply With Quote
Old 01-19-2010, 04:39 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,575
Affluent for who?

For a young person with no debts. no dependants and a steady job living in a low cost area, $250K probably does make them affluent.

For a couple at or near retirement with no pension, no SS or other welfare and still having children to support living in a high cost city it is not much.

Put another way, if you can get a real return of 4% pa - you get income of $10K pa. In most developed countries, that will not go far. In a lot of places it may not even be enough to pay the rent.
__________________
Budgeting is a skill practised by people who are bad at politics.
traineeinvestor is offline   Reply With Quote
Old 01-19-2010, 04:45 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
400k - PER YR - INCOME! That's affluent.

:ro fl:

Not dinky 40k from a 1 mil portfolio!

I am poor, poor, poor I tell you.

heh heh heh - And I am shiftless - after seeing ER(16yrs) - I ain't going back to work neither. So there.
__________________
unclemick is offline   Reply With Quote
Old 01-19-2010, 05:24 PM   #5
Thinks s/he gets paid by the post
Keim's Avatar
 
Join Date: Feb 2007
Location: Moscow
Posts: 1,128
According to Dictionary.com
1.having an abundance of wealth, property, or other material goods; prosperous; rich: an affluent person. 2.abounding in anything; abundant.3.flowing freely: an affluent fountain.
---------
By that definition I think it depends on whether one feels $250k is an abundance. My neighbors with no savings probably think it is. I do not.

But I'll take it over $125k.
__________________
Keim is offline   Reply With Quote
Old 01-19-2010, 05:42 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Seems as if the financial institution that knew my old Megacorp plans and wanted to assist retirees regarding financial matters would only deal with folks who had $250k or more in their portfolios.

I think they set the bar. YMMV.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 01-19-2010, 05:52 PM   #7
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
While I do not think of us a affluent, I think we most likely are when compared with the majority of the population. We have surplus income. Not a lot, but still there is more coming in than going out on a regular basis. We buy what we want when we want it. It's just we don't want expensive things. One car, shop Wally World, Taco Bell is going out to eat. Is there a difference between Rich and Affluent? Because Warren and Bill are Rich, and I by no means think we are Rich.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 01-19-2010, 06:22 PM   #8
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
A person with anet worth of $250,000 is not affluent imho. But someone with an extra uninvested $250,000 lying around waiting for paid advice from someone at MLynch about where to invest it? Probably.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 01-19-2010, 06:28 PM   #9
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,890
Quote:
In 2004, people aged 55–64 with a college degree had a median net worth excluding home equity of $128,478
2008: Retirement Resources - Net Worth

So, I would conclude that a net worth of $250K (excluding home equity) would be affluent.

That would be the objective measure. But subjectively, "affluent" means having at least twice what I have at the moment. Always has.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 01-19-2010, 06:51 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Jan 2004
Posts: 2,049
Quote:
In 2004, people aged 55–64 with a college degree had a median net worth excluding home equity of $128,478


But: "Note: Net worth data do not include pension wealth."
__________________
eridanus is offline   Reply With Quote
Old 01-19-2010, 07:00 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,527
I certainly feel affluent. I even walk around with my nose tilted at a slightly upward angle. But I'm 29, full of myself, and have means well above the mere quarter million mark.

If my real life acquaintances knew my net worth, they would probably consider me affluent. However I like to roll incognito. So my secret is safe. But for a reference point, I was at the in-laws doing some lite computing on my netbook recently when my BIL caught a glimpse of me checking the DW's 401k balance at Fidelity. It's balance is between $50,000 and $100,000. When he saw the account balance, to him that made us rich. He's older than DW and I, but has just never accumulated any kind of net worth. Probably pretty typical for the lower quarter or lower half of people in their 20's and 30's in general. So yes, $250,000 investable assets would make one affluent to the average person at least in their 20's 30's and maybe 40's.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 01-19-2010, 07:10 PM   #12
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Fuego feeling affluent and BIL feeling bad cause he didn't save for retirement


__________________
MasterBlaster is offline   Reply With Quote
Old 01-19-2010, 07:18 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,527
Quote:
Originally Posted by MasterBlaster View Post
Fuego feeling affluent and BIL feeling bad cause he didn't save for retirement


That's not my in-laws, that's my blood relatives! They didn't save for retirement either.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 01-19-2010, 07:59 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
I guess I will remain a slave to the financial industry in this respect: $1MM in investable assets is affluent in my book. Under 50 and 500k-1MM in assets is "emerging affluent."
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 01-19-2010, 09:39 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
I'll bet the $250k Merrill is talking about excludes workplace retirement accounts like 401k's. Normally they're only interested in the value of what you have free to invest with them. That raises the bar a bit.

By itself $250k * .04 = $10k/year isn't close to affluent in my book.
__________________
Animorph is offline   Reply With Quote
Old 01-19-2010, 09:45 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Houston
Posts: 1,435
Heck, when I saw this thread's title, I was on the fence if $250k income was affluent. And I come to find out we're talking about $250k in assets? No way.
__________________
soupcxan is online now   Reply With Quote
Old 01-19-2010, 10:14 PM   #17
Full time employment: Posting here.
GoodSense's Avatar
 
Join Date: Jul 2007
Posts: 678
Quote:
Originally Posted by W2R View Post
2008: Retirement Resources - Net Worth

So, I would conclude that a net worth of $250K (excluding home equity) would be affluent.

That would be the objective measure. But subjectively, "affluent" means having at least twice what I have at the moment. Always has.
I haven't seen this article before. Really?? That's a lot lower than I thought. Of course my perspectives are very distorted hanging out on this forum. In any case, I hope most of those surveyed have some sort of pension because they are in pretty poor shape otherwise!
__________________
GoodSense is offline   Reply With Quote
Old 01-19-2010, 11:25 PM   #18
Full time employment: Posting here.
toofrugalformycat's Avatar
 
Join Date: Mar 2007
Location: Anchorage
Posts: 731
Affluent means you spend most of your day comfortably, doing what you choose to do, and have the means to do it for as long as you like.
How much money/stuff you must have to achieve this varies widely depending on where you are on the planet and what activities please you.
__________________
toofrugalformycat is offline   Reply With Quote
Old 01-20-2010, 02:28 AM   #19
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 1,012
Quote:
Originally Posted by toofrugalformycat View Post
Affluent means you spend most of your day comfortably, doing what you choose to do, and have the means to do it for as long as you like.
Naaaa that is FI not affluent. you can be affluent and still be working. affluent just means you have/make more that most others. therefore whether $250k in assets is affluent depends on what group you are comparing to. if that be the population of the USA then yes it is, if that be the population of the world then yes it definately is, however if it is the population that frequents this board, maybe not.
__________________
jdw_fire is offline   Reply With Quote
Old 01-20-2010, 07:52 AM   #20
Recycles dryer sheets
 
Join Date: Dec 2009
Posts: 214
I belong to a survey panel called "Affluent Dynamics". Periodically they send me short surveys to fill out and give me 3000 United Airline miles as a reward.

Their criterion for acceptance to the panel was a liquid net worth (not including home equity) of $1 MM.
__________________

__________________
chemist is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Don't forget to claim your part of the $10,000,000,000 refund mickeyd FIRE and Money 1 12-26-2006 01:58 PM
$250,000 daystar Young Dreamers 10 12-19-2006 10:49 AM

 

 
All times are GMT -6. The time now is 10:26 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.