Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
When a Million Dollars was serious wealth
Old 08-26-2021, 02:35 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: W Wash
Posts: 1,495
When a Million Dollars was serious wealth

DW & I were discussing the current debates in the media regarding if and how bad inflation might become and it triggered me to do this simple check. I graduated from my Masters program at Duke in 1970. The Millionaire Next Door was the rage and there was the TV program The Millionaire. My first job at a Fortune 100 megacorp almost broke the magic five figures.
Out of curiosity, I used the government inflation calculator (https://www.usinflationcalculator.com) to see what that 1970 Million dollars is worth today--7,036,159.79!
Our net worth while healthy and over a Million, it is nowhere near 7,036,159.79. For me, it was a real eye opener just how much inflation can take.
YMMV
nwsteve 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 08-26-2021, 02:47 PM   #2
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 19,240
Actually, The Millionaire (TV series) ended in 1960. So that would make it more than $9 million today.


https://en.wikipedia.org/wiki/The_Mi...28TV_series%29
__________________
I thought growing old would take longer.
braumeister is offline   Reply With Quote
Old 08-26-2021, 02:51 PM   #3
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 237
Like someone once said, "Inflation is the crabgrass in your savings", but you might want to roll your calculations forward about 25 years.

The Millionaire Next Door, was originally published in 1996.
Palmtree is offline   Reply With Quote
Old 08-26-2021, 02:52 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: St. Charles
Posts: 2,960
And the Millionaire Next Door wasn't written until 1996. So, the inflation effect from then would be $1,739,980.88
__________________
If your not living on the edge, you're taking up too much space.
Never slow down, never grow old!
CardsFan is offline   Reply With Quote
Old 08-26-2021, 03:54 PM   #5
Full time employment: Posting here.
 
Join Date: Aug 2012
Posts: 953
Quote:
Originally Posted by nwsteve View Post
DW & I were discussing the current debates in the media regarding if and how bad inflation might become and it triggered me to do this simple check. I graduated from my Masters program at Duke in 1970. The Millionaire Next Door was the rage and there was the TV program The Millionaire. My first job at a Fortune 100 megacorp almost broke the magic five figures.
Out of curiosity, I used the government inflation calculator (https://www.usinflationcalculator.com) to see what that 1970 Million dollars is worth today--7,036,159.79!
Our net worth while healthy and over a Million, it is nowhere near 7,036,159.79. For me, it was a real eye opener just how much inflation can take.
YMMV
But a million dollars in 1970 was more than most people needed probably by quite a bit as is $7 million today.
I graduated high school in 1977 and if you said someone from our small town was a millionaire it was a big deal. Today of course it is not a big deal and in fact is almost mandatory.
finnski1 is offline   Reply With Quote
Old 08-26-2021, 04:14 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 11,382
Quote:
Originally Posted by braumeister View Post
Actually, The Millionaire (TV series) ended in 1960. So that would make it more than $9 million today.
Quote:
Originally Posted by Palmtree View Post
The Millionaire Next Door, was originally published in 1996.
But the average of those two is just about correct!
RunningBum is offline   Reply With Quote
Old 08-26-2021, 04:26 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 12,727
Quote:
Originally Posted by braumeister View Post
Actually, The Millionaire (TV series) ended in 1960. So that would make it more than $9 million today.


https://en.wikipedia.org/wiki/The_Mi...28TV_series%29
If you watch it, you will notice DeForest Kelly playing an young idealistic doctor in one of the episodes.

A million bucks. Tax free, IIRC. Not bad even today.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 08-26-2021, 04:30 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Oct 2019
Posts: 1,706
I've had a million, I've had 2 million, two million is better!

A paraphrase of Ashley Montagu.




"I've been rich and I've been poor, rich is better.
Time2 is offline   Reply With Quote
Old 08-26-2021, 04:40 PM   #9
Dryer sheet wannabe
 
Join Date: Feb 2016
Posts: 14
Inflation in the 70s was rampant. The value of $1M in 1980 is only $3.3M today.
willing2try is offline   Reply With Quote
Old 08-26-2021, 04:50 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Location: Crownsville
Posts: 2,778
Back around 1999/2000, when I started planning my retirement goals, I figured that if I could get to $1M in investible assets, and mortgage free, I'd be happy.

Adjusting for inflation, that would be around $1.6M and mortgage free today. I'm currently around $2.4M, but with around $459K on the mortgage. So, subtract out the mortgage and I'd be around $1.941M. Or, about 21% above my $1M goal in 1999/2000.

So, maybe my original goal wasn't *too* far off, after all.
Andre1969 is offline   Reply With Quote
Old 08-26-2021, 04:59 PM   #11
Recycles dryer sheets
 
Join Date: Jul 2011
Location: Reading, MA
Posts: 368
I've noted this a few times before, but the current concept of a millionaire, especially in regard to various Millionaire Tax schemes, refers to someone with an income of $1,000,000 per year or more.
And there are a lot of them...
TheWizard is offline   Reply With Quote
Old 08-26-2021, 05:17 PM   #12
Recycles dryer sheets
 
Join Date: Aug 2021
Location: Reseda
Posts: 81
Quote:
Originally Posted by TheWizard View Post
I've noted this a few times before, but the current concept of a millionaire, especially in regard to various Millionaire Tax schemes, refers to someone with an income of $1,000,000 per year or more.
And there are a lot of them...

You're bursting some bubbles there.
MC Rider is offline   Reply With Quote
Old 08-26-2021, 05:44 PM   #13
Recycles dryer sheets
 
Join Date: Apr 2014
Posts: 163
If that was 1970 (51 years ago), fast forward 51 years from today (2072) and imagine what a million dollars will be worth in purchasing power for our kids. Sadly, I suspect $1,000,000 will be the equivalent of you having at best $100,000 in 2021 dollars. That assumes the dollar still exists as a recognized and respected unit of measure.
CSdot is online now   Reply With Quote
Old 08-26-2021, 05:59 PM   #14
Recycles dryer sheets
 
Join Date: Aug 2021
Location: Reseda
Posts: 81
Quote:
Originally Posted by CSdot View Post
........ That assumes the dollar still exists as a recognized and respected unit of measure.

In 50+ years? I say not a chance, LOL.
Also not a chance any of us will be around to find out.
MC Rider is offline   Reply With Quote
Old 08-26-2021, 06:17 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2014
Posts: 5,110
I was watching reruns of "Gilligan's Island" last week while we were temporarily confined to our rooms on my Alaska cruise - the crew kept us supplied with food, DVDs, books and adult beverages. It was kind of funny to hear Thurston Howell described as "a millionaire" who clearly could afford anything he and Lovie wanted.

A million isn't what it used to be.
athena53 is offline   Reply With Quote
Old 08-26-2021, 06:30 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 6,923
We have almost 19 million millionaires here in USA. Highest in the world.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is online now   Reply With Quote
Old 08-26-2021, 06:35 PM   #17
Full time employment: Posting here.
RetiredHappy's Avatar
 
Join Date: Jun 2021
Posts: 514
This is another measure... countries with the most millionaires per capita. Hint: It is not USA.

https://nomadcapitalist.com/finance/...es-per-capita/
RetiredHappy is online now   Reply With Quote
Old 08-26-2021, 09:19 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 10,451
Wonder how many of them would be in the million club without home equity.

Quote:
Originally Posted by RobbieB View Post
We have almost 19 million millionaires here in USA. Highest in the world.
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
It involved a mannequin hand, and an electric shaver taped to a golf club! - "The Other Guys"
Amethyst is offline   Reply With Quote
Old 08-26-2021, 11:28 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 6,719
In 1968 I had a summer j*b working for a millionaire. I got paid $1.50/hr for being a driver and all around gopher. The guy never flaunted his wealth and I learned a lot from him. When I got my "real j*b" after school ca. 1970 I was making $10K plus. At first, I thought I was rich. That didn't last long. Though I eventually became a millionaire, it's just not the same due to inflation. YMMV
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is online now   Reply With Quote
Old 08-27-2021, 04:48 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Location: Crownsville
Posts: 2,778
Seems like not that long ago, if you put $1M into one of those "What percent net worth am I" calculators, it would put you in roughly the top 8%. But, I just tried one out, and now it's only the top 11.9%. Of course, that number is going to vary depending on the calculator you use, and I'm sure the data itself could be suspect, but it does show that time, and inflation, do march on.
Andre1969 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
Simple Wealth, Inevitable Wealth meleana FIRE and Money 20 02-28-2019 10:23 AM
Converting t-IRA dollars into Roth IRA dollars HadEnuff FIRE and Money 82 11-14-2017 10:46 AM
If I had a million dollars . . . bongo2 FIRE and Money 136 12-21-2011 07:26 AM
Retirement - 1 million dollars ain't enough shotgunner FIRE and Money 137 03-23-2010 11:36 AM
World Wealth Report or 8.7 Million High-Net-Worth Individuals Worldwide Spacebär FIRE and Money 5 07-01-2006 09:40 AM

» Quick Links

 
All times are GMT -6. The time now is 09:41 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.