What is a "millionaire"

[firewhen]

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]

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]

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]

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).

 

[W2R]

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.

 

[Dawg52]

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]

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]

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/fortune/almanacamericanwealth/2007/flash/index.html?section=money_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/Household_income_in_the_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!]

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.

 

[W2R]

Believing from this link
http://money.cnn.com/magazines/fortune/almanacamericanwealth/2007/flash/index.html?section=money_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]

Believing from this link
http://money.cnn.com/magazines/fortune/almanacamericanwealth/2007/flash/index.html?section=money_topstories

I wonder what they mean by "Average median"?

 

[John Tuttle]

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]

Makes sense. Thanks John.

 

[TromboneAl]

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]

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...

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]

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]

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.

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

 

[lazygood4nothinbum]

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]

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]

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.

 

[calmloki]

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.

Got a couple years on you Al - remember the show and agree with your amount and/or Dog52's. A million just ain't a million anymore.

 

[Lyle]

I believe a millionaire is anyone with $1 million dollars or more. A million is still a lot of money. Depending on whether you are a pre retired or a post retired millionaire I think everyday you could be thankful you have that much, but maybe also wonder if it is enough to last.

Lyle

 

[DangerMouse]

So are you a millionaire if as a couple you have a million dollars in the bank? Technically speaking, I guess DH and I should divide what we have in half and I guess as individuals that is our true net worth.

 

[califdreamer]

I'll take T-Al's and calmloki's approach. I think back to key times in life and what "millionaire" meant at the time. Assuming 3% annual inflation (which is not entirely accurate, I'm sure, but it'll do) here are my key years:

1959 - $ 4.01 M (birth year)

1969 - $ 3.07 M

1977 - $ 2.43 M (HS graduation)

1981 - $ 2.16 M (college graduation)

Why is 1969 important you ask? Peak viewing period of Gilligan's Island reruns and identifying Thurston Howell III (the "millionaire") as really wealthy.

So I voted for $3M.

 

[Spanky]

By definition, net worth of $1 million or more.

Obviously, a millionaire in Vietnam is inly worth $60 U.S.D.
1 US Dollar = 16,678.0 Vietnamese Dong
1 Vietnamese Dong (VND) = 0.00005996 US Dollar (USD)