Six levels of wealth - how are you doing?

[GoodbyeYellow]

This video that I chanced upon outlines the six levels as defined by this chap. I don't know enough to agree or not, but I got to wondering if his 'measures' are all that.

As in, we fall in somewhere between group 5 and 6 (as I daresay many here do), but of the remaining 11 measures in group 5 (except NW) can tick off only TWO of them (Education and Income Sources). OTOH, we buy our clothes mostly from Costco (although we have been shopping REI a bit for shoes and such), use Medicare and ACA, cook most of our food with a little bit of dining out. We have started upping the vacation ante a bit lately, so ok, 2.5 check marks. But quite a miserable score out of 11 in either case. Makes me wonder if we're doing this wrong, but... fundraisers? Sayyyy what?

How do y'all do in your group? Not asking which group you're in (but if you want to share, feel free) but rather, how many boxes in your group do you check?

 

[RetiredHappy]

Generally I don't click on links but I did it this time. Level 5 is pretty much describes us to the t, including concierge doctor, high end vacations and custom and professionally managed homes. We check every box in Level 5. Many of our close friends are at Level 5 and Level 6.

 

[luckydude]

We are in Level 6 but only check one box (legacy planning).

I think Level 6 is way too broad and can be broken down further. There are discernible differences in terms of lifestyle between a $15 million NW vs $50 million NW vs $100 million NW vs $500 million, etc.

For example, flying commercial vs. chartering vs. ownership; single vs. multiple generational wealth (and associated estate planning); specialized investments such as arts, PE, etc.; multiple number of homes; personal assistant/staff to manage/take care of mundane day-to-day tasks; and ability to influence public policies through fund raising, political donations or even elected offices to further one's political or personal beliefs, etc.

 

[Sunset]

I'll have my butler take a look at the video in the morning

 

[Gumby]

I find the attention to clothing to be odd.

 

[FIREd]

I relate best to a level 4 retiree even though I checked several boxes at level 5 and 6. The kind of lifestyle described at those levels has little appeal to me (some of it even sounds like a nightmare to me).

 

[shotgunner]

So there are different levels of wealth, shocking news. I would say if you made it to level 3 or above AND you retired early AND you are happy you grabbed the brass ring on life's merry go around. Congratulations. Me, level 4, but spending at level 3.

 

[planuntilthefisthits]

I find the attention to clothing to be odd.

I also find it curious that there seems to be a suggested correlation between wealth and desire to socially engage. Perhaps that is what gets financial advisors wealthy?

 

[DrRoy]

Level 3 social, Level 4 career, education, medical, nutrition, housing, clothes, Level 5 for the rest.

 

[aaronc879]

I'm mostly level 2, a little level 3. My net worth is in level 3 but my income was always level 1 or 2.

 

[Ronstar]

A couple attributes of level 3, 5 attributes of level 4, and a few of level 5. I'd have to go back for my MBA and seriously BTD to bring all attributes into the same level.

 

[Taco]

I’m at level Enough.

 

[Gumby]

I went back through and note that the first four items for each of his levels are qualifications - net worth, income, work history and education. The remaining seven or eight are lifestyle choices, which may correlate somewhat therewith but are certainly are not necessary qualifications.

I mentioned clothes earlier - I personally dress like the guys who sleep out behind the library, because it is comfortable and appropriate for the things I do, like work in my garden. I suppose I could buy nicer, more expensive clothes, but why?

 

[ShokWaveRider]

I regular watch this guy and appreciate his insights, however this one (video) to me was not realistic. We are not poor and not super rich but probably in the upper 5-10% (4 to 5). DW loves getting "New" tagged clothes from thrift shops, it seems to be a hobby of hers, me not so much. But I only ever wear Flip Flips (Folios) from Costco and very comfortable house attire, mostly shorts from anywhere as long as it is new. I could give a rats as to what the brand is. On the rare occasion that I need to I wear Dockers and a golf shirt, nothing dressier. I have not put on a dress shirt in over 20 years. I do not posses a suit or sports jacket that fits. My shoes are comfortable Docker style slip-ons and I rarely wear socks. DW's clothes look a lot dressier than mine.

 

[Surewhitey]

We check a items in 3,4&5, but not yet finished. Probably a solid 4.2 when we get there.

Retirement income is higher than I'd expect based on NW.

 

[pb4uski]

Level 5 numbers and background but more towards Level 4 lifestyle.

 

[pb4uski]

 

[FLSUnFIRE]

I think it's funny... a lot of stereotyping related to lifestyle, spending, and social activities based off their assets/income. I don't fit any of the categories as described and neither do many others I know.... the only one I'm definitely not is level 6.

 

[MarieIG]

I "subscribe" to Schmidt, although I don't watch all of his videos. As to this, we span several levels.

I like clothes and appreciate good cut and materials, but I don't want labels on my clothes / bags, and there are only so many handbags I can use. I also don't want to spend a fortune on clothes, and frankly the majority of my clothes and bags have lasted for years. Depending upon what I'm doing - I vacillate between dressing very casually (i.e. if I were carry a cup I might get a donation), and attempting to look put together. I "dress up" for myself and DH.

We might BTD on shoes / boots, but not for the brand name but for comfort, support and safety. (DH was a blue collar worker who spent hours and hours on his feet. He would be specially measured and buy custom steel toe boots, which could be re-soled. Money well spent.)

As far as cars go, I want to be safe, comfortable and get from point A to point B.

We do not skimp on food or supplements. I have a "personal chef" - DH, so there is that.

As far as educational background, I have an advanced degree and DH graduated from HS and did not complete college. I was lucky to get him. He turned out to be a much better match than other suitors with advanced degrees or more money. As an aside, he paid for my advanced degree.

We do not have a concierge medical team, although some of my relatives do. I may look into this in the future, but haven't yet found the "perfect" doctor.

When we look for our next home, the search will be based upon location, convenience, safety features for an aging couple, storage and comfort.

 

[Car-Guy]

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Thanks for this, I didn't want to spend the time watching the video.

So, I'm at level 3, 4, 5 and enough.

 

[old medic]

Maybe 3.8

 

[COcheesehead]

Level 5

 

[Fermion]

Would you rather be age 45 and level 4 in great health, or age 60 with cancer and heart disease and level 6?

 

[Qs Laptop]

Interesting video.

I'm finding it hard to believe that Level 5's have personal chefs. Is that realistic?

 

[Flyfish1]

Solid Level 5 , although I had to laugh about the personal chefs for nutrition. Silly nonsense - I don't know anyone in my "bracket" that uses a personal chef. I realize he is generalizing but most of us who worked hard and saved hard got to ER because we wouldn't waste money on a personal chef.
My wife loves to cook and is good at it so there's that and if I call her my personal chef she will probably punch me in the arm. Same with clothing - most of the time I dress like a construction laborer as I am in my workshop getting sawdust all over me, and loving it. Of course when I was working that was different.