What is a "millionaire"

firewhen · 03-03-2007, 06:55 AM

We use the term millionaire alot now. As a kid, anyone with 1 million, or even just close to that was deemed a millionaire and very rich. Now it is much more common. If you think of someone else, or yourself, as that, how much money would they need to have. I know that at 1 million, technically that is a millionaire, but how much do you consider necessary to reach that once exalted status?

Since the questions are bound to come up, I would count home equity and the value of a pension, but the choice is yours.

Lazarus · 03-03-2007, 07:04 AM

Net worth of a million = millionair. Not what it used to be though. Probably when I was 25 having $250K would have been about the same.

**REWahoo** · 03-03-2007, 07:18 AM

Quote:

Originally Posted by firewhen

Since the questions are bound to come up, I would count home equity and the value of a pension, but the choice is yours.

What about the value of health insurance. Should we include that?

Zathras · 03-03-2007, 07:20 AM

It would be interesting to see what percentage of the population had a net worth of 1 Million 50 years ago.
I would put forth that reaching that 'status level' is more a factor of percentage of the population than a dollar amount. For example, say 50 years ago, 1% of the population were millionaires. Find out what the top 1% of the population is worth and put the bar there.

As to the subject though, technically a "Millionaire" is still someone with a net worth or 1 Million or more (just as you commented in the body of your message).

**Want2retire** · 03-03-2007, 07:20 AM

I consider a person to be a millionaire if he has 1 million dollars, and for me that even means his net worth, including his assets. So, if someone has a $600K house, $200K in retirement accounts and $200K in taxable accounts, I consider him/her to be a millionaire!

There sure are a lot more of them than there used to be. One day maybe I might get to that stage.

Dawg54 · 03-03-2007, 07:22 AM

Yes, there are many more millionaires today but only 1% of the U.S. population falls in this category and far less worldwide. So it still is a nice accomplishment.

Tadpole · 03-03-2007, 07:51 AM

Millionaire: A millionaire is a middle-class worker/retiree with property and/or savings.

From westegg inflation calculator:
What cost $1000000 in 1955 would cost $7243671.97 in 2006.

Based on a baseline of the 50s, I choose $10M.

perinova · 03-03-2007, 07:52 AM

Quote:

Originally Posted by DOG52

Yes, there are many more millionaires today but only 1% of the U.S. population falls in this category and far less worldwide. So it still is a nice accomplishment.

Believing from this link
http://money.cnn.com/magazines/fortu...ney_topstories
You will find close to 5% of millionaires in rich states like NJ downto 2% in MS.

The mean income is from $60K downto $35K, so at 4%SWR you need $1.5M in NJ or $875K in MS.
From these stats being a millionaire will become more and more common and it already doesn't offer more than an average lifestyle (if you are not working).
$1.2M affords you median income
$2.2M affords you the top 20%
$3.9M affords you the top 5%
$6.2M affords you the top 1.5%
http://en.wikipedia.org/wiki/Househo..._United_States
I conclude that at $1.2M you can FIRE. If you want to live the good life wait to $2.2M. If you want ot be rich (firewhen's question) wait to have 3.9M

LOL! · 03-03-2007, 07:53 AM

Quote:

Originally Posted by Zathras

Find out what the top 1% of the population is worth and put the bar there.

Hmmm, "The Top %1 of the Population is Worth Next Door" just doesn't have the same ring to it.

**Want2retire** · 03-03-2007, 08:20 AM

Quote:

Originally Posted by perinova

Believing from this link
http://money.cnn.com/magazines/fortu...ney_topstories
You will find close to 5% of millionaires in rich states like NJ downto 2% in MS.

Interesting link! Thanks. It's both entertaining and possibly useful to see the geographic differences laid out on a map like that.

Sam · 03-03-2007, 08:49 AM

Quote:

Originally Posted by perinova

Believing from this link
http://money.cnn.com/magazines/fortu...ney_topstories

I wonder what they mean by "Average median"?

John Tuttle · 03-03-2007, 09:04 AM

Quote:

Originally Posted by Sam

I wonder what they mean by "Average median"?

The figure given is for 03-05 so perhaps they mean the average of the median income for year 03, median income for year 04. and median income for year 05?

Sam · 03-03-2007, 09:12 AM

Makes sense. Thanks John.

TromboneAl · 03-03-2007, 09:15 AM

Remember the TV show "The Millionaire"? It ran from 1955 to 1961. I was 9 in 1961, so I probably remember the reruns.

The show followed the lives of everyday people about to be given a million dollars, tax free, by the wealthy (but never seen) John Beresford Tipton, through his representative, Michael Anthony.

That's what I think of when I hear the term "millionaire."

I agree that, by definition, a millionaire is someone with 1 million smackers. But to have the same amount of spending power that those people got in 1960, you'd need $6,838,378 today.

Peaceful_Warrior · 03-03-2007, 10:26 AM

This is how I view a "millionaire" as well.

The rule of 7 says I'll get there in about 20 years. I say f*** that, I want to be at $2-$3M in 10-15 years.

Guess it's time to really build the revenues from our website...

Quote:

Originally Posted by Want2retire

I consider a person to be a millionaire if he has 1 million dollars, and for me that even means his net worth, including his assets. So, if someone has a $600K house, $200K in retirement accounts and $200K in taxable accounts, I consider him/her to be a millionaire!

There sure are a lot more of them than there used to be. One day maybe I might get to that stage.

retire@40 · 03-03-2007, 10:48 AM

Quote:

Originally Posted by Want2retire

I consider a person to be a millionaire if he has 1 million dollars, and for me that even means his net worth, including his assets. So, if someone has a $600K house, $200K in retirement accounts and $200K in taxable accounts, I consider him/her to be a millionaire!

True, but there is a difference between having a $1M house and having $1M in the bank.

Peaceful_Warrior · 03-03-2007, 11:21 AM

Liquidity certainly is helpful, which is why I try to carry as little equity in my home as possible right now. When we move later this year (or next year), we are intending to take all of our equity and invest it and then buy a home with 0 down.

I figure that if I'm getting 9-10% fixed income and the mortgage is at 7% or less then the deduction ends up making it well worth it... especially over the course of an entire mortgage.

Quote:

Originally Posted by retire@40

True, but there is a difference between having a $1M house and having $1M in the bank.

lazygood4nothinbum · 03-03-2007, 12:17 PM

a millionaire is still a millionaire & still affords the greatest luxury known. because where time is money, anyone not forced to toil has all the time in the world.

audreyh1 · 03-03-2007, 12:46 PM

Quote:

Originally Posted by lazygood4nothinbum

because where time is money, anyone not forced to toil has all the time in the world.

I like your definition of "time is money"! If you don't have to work for a living, then you are very very wealthy indeed!!!

Rather than the horrible point of view where if you aren't earning money with your time, then your time is "worthless".

Audrey

wabmester · 03-03-2007, 01:04 PM

According to my research google, the term millionaire was coined in either 1717 or 1843. If we assume the latter, then one would need $20 million to have the same purchasing power as an 1843 millionaire.

View Poll Results: How much to be a "millionaire"
$1 Million	106	65.84%
$3 Million	19	11.80%
$5 Million	24	14.91%
$10 Million	8	4.97%
$25 Million or over	4	2.48%
Voters: 161. You may not vote on this poll

03-03-2007, 06:55 AM	#1
firewhen Recycles dryer sheets Join Date: Dec 2006 Posts: 137	What is a "millionaire" We use the term millionaire alot now. As a kid, anyone with 1 million, or even just close to that was deemed a millionaire and very rich. Now it is much more common. If you think of someone else, or yourself, as that, how much money would they need to have. I know that at 1 million, technically that is a millionaire, but how much do you consider necessary to reach that once exalted status? Since the questions are bound to come up, I would count home equity and the value of a pension, but the choice is yours.

03-03-2007, 07:04 AM	#2
Lazarus Recycles dryer sheets Join Date: May 2005 Posts: 413	Re: What is a "millionaire" Net worth of a million = millionair. Not what it used to be though. Probably when I was 25 having $250K would have been about the same. __________________ My Dog eats dryer sheets.

03-03-2007, 07:20 AM	#4
Zathras Full time employment: Posting here. Join Date: Jun 2006 Posts: 665	Re: What is a "millionaire" It would be interesting to see what percentage of the population had a net worth of 1 Million 50 years ago. I would put forth that reaching that 'status level' is more a factor of percentage of the population than a dollar amount. For example, say 50 years ago, 1% of the population were millionaires. Find out what the top 1% of the population is worth and put the bar there. As to the subject though, technically a "Millionaire" is still someone with a net worth or 1 Million or more (just as you commented in the body of your message). __________________ "We do not inherit the earth from our ancestors, we borrow it from our children. (Ancient Indian Proverb)"

03-03-2007, 07:20 AM	#5
Want2retire Moderator Join Date: Jan 2007 Location: New Orleans Posts: 6,422	Re: What is a "millionaire" I consider a person to be a millionaire if he has 1 million dollars, and for me that even means his net worth, including his assets. So, if someone has a $600K house, $200K in retirement accounts and $200K in taxable accounts, I consider him/her to be a millionaire! There sure are a lot more of them than there used to be. One day maybe I might get to that stage. __________________ Dreaming of retirement....305 days " - - my greatest skill has been to want but little - - " (Henry David Thoreau, in Walden)

03-03-2007, 07:22 AM	#6
Dawg54 Thinks s/he gets paid by the post Join Date: Feb 2005 Location: Mississippi Posts: 3,338	Re: What is a "millionaire" Yes, there are many more millionaires today but only 1% of the U.S. population falls in this category and far less worldwide. So it still is a nice accomplishment. __________________ Full time golf bum.......

03-03-2007, 07:51 AM	#7
Tadpole Recycles dryer sheets Join Date: Jul 2004 Posts: 346	Re: What is a "millionaire" Millionaire: A millionaire is a middle-class worker/retiree with property and/or savings. From westegg inflation calculator: What cost $1000000 in 1955 would cost $7243671.97 in 2006. Based on a baseline of the 50s, I choose $10M.

03-03-2007, 09:12 AM	#13
Sam Thinks s/he gets paid by the post Join Date: Mar 2006 Posts: 1,743	Re: What is a "millionaire" Makes sense. Thanks John.

03-03-2007, 09:15 AM	#14
TromboneAl Thinks s/he gets paid by the post Join Date: Jun 2006 Posts: 4,332	Re: What is a "millionaire" Remember the TV show "The Millionaire"? It ran from 1955 to 1961. I was 9 in 1961, so I probably remember the reruns. The show followed the lives of everyday people about to be given a million dollars, tax free, by the wealthy (but never seen) John Beresford Tipton, through his representative, Michael Anthony. That's what I think of when I hear the term "millionaire." I agree that, by definition, a millionaire is someone with 1 million smackers. But to have the same amount of spending power that those people got in 1960, you'd need $6,838,378 today. __________________ - Al -- Always serious, never joking. No, wait. Never serious... Always... I forget.

03-03-2007, 12:17 PM	#18
lazygood4nothinbum Thinks s/he gets paid by the post Join Date: Feb 2006 Posts: 3,897	Re: What is a "millionaire" a millionaire is still a millionaire & still affords the greatest luxury known. because where time is money, anyone not forced to toil has all the time in the world.

03-03-2007, 01:04 PM	#20
wabmester Thinks s/he gets paid by the post Join Date: Dec 2003 Posts: 4,461	Re: What is a "millionaire" According to my research google, the term millionaire was coined in either 1717 or 1843. If we assume the latter, then one would need $20 million to have the same purchasing power as an 1843 millionaire.