At what net worth are you considered wealthy ?

[Anonymous]

My guess: 10 million - NOT including your home(s)

[Anonymous]

Anonymous wrote:I am $3M at 40. When DCUM discusses HHI, we’re barely middle class ($250k). When we talk about net worth, then I’m borderline wealthy.

$250K in this area is still upper class.

https://www.pewresearch.org/short-reads/2024/09/16/are-you-in-the-american-middle-class/

[Anonymous]

Anonymous wrote:Everyone has their own definition of wealthy. Surprised people call anything under 10M wealthy. I'd draw the line at 30M.

signed NW individual at 5.5M

+1. Similar NW and I would say between 20-30 million.

[Anonymous]

Wealthy is you have so much money that you dont need to think about money. If you're reading this thread to see if others agree on a line that you've crossed that defines wealthy, hoping the consensus is you are wealthy, then you are not.

I have $11.5 M net worth, $6.4 M liquid not retirement, $1.8 M retirement, and by my own definiton I suppose I'm not. My former CEO who exited with $125 M knows he is wealthy. He isnt figuring out what line he needs to cross for everyone to agree he's wealthy.

FWIW $10 M liquid in cash flow portfolio is my goal to sustain my HHI indefinitely without eroding capital at current lifestyle, which is "everything I want and need" level.

[Anonymous]

If you have a $10m after tax account with no debt, you are wealthy. Add in your real estate and retirement assets.

I would not say someone with a $10M NW is wealthy if most of their NW is real estate and retirement accounts

[Anonymous]

If your net worth is high enough to throw off $300,000 a year in cash then you are definitely wealthy. $10m is wealthy.

[Anonymous]

I think the debate between NW versus cash flow depends on where you are in your working career. The closer you get to the end of your career, cash flow becomes the chief concern, not building NW.

I am late 50s, and it’s all I think about. I have no pension, so actively selling no/low yield stocks( including tech) to buy individual bonds/CDs, to lock-in some income. My younger self would not be doing this. I don’t even consider my house in NW, b/c I am going to live in for likely another 10 years, so it’s really an expense to me.

[Anonymous]

Anonymous wrote:If your net worth is high enough to throw off $300,000 a year in cash then you are definitely wealthy. $10m is wealthy.

Exactly

[Anonymous]

$5 million used to be the poorest rich person in America, but now I think it's $10 million. $10 million is a nightmare—the weakest strongman at the circus.

[Anonymous]

Anonymous wrote:$5 million used to be the poorest rich person in America, but now I think it's $10 million. $10 million is a nightmare—the weakest strongman at the circus.

Yes, definitely a nightmare. Thank god I don’t have that problem.

[Anonymous]

Anonymous wrote:My guess: 10 million - NOT including your home(s)

I would say 100 million. double digit millionaires are now a dime a dozen.

[Anonymous]

Context people. I haven’t worked in ten years and I’m sitting by my pool in my second home entertaining myself by reading DCUM. I have two homes (one in the city and another in the country) with no mortgages and worth a combined $3 million. I also have $5 million in retirement accounts, $1 million plus in brokerage accounts and bring in $7000 a month in rental income.

I have no debts, college has been long paid for and kids are adults, and I’m healthy.

Yes, I consider myself very wealthy and extremely fortunate. And no, when you add it all up it ain’t $10 million.

[Anonymous]

Anonymous wrote:$5 million used to be the poorest rich person in America, but now I think it's $10 million. $10 million is a nightmare—the weakest strongman at the circus.

True a garbage man could easily have 5 million nowdays.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would say a liquid net worth of at least 1 million outside of retirement and housing. That amount of money gives a lot of flexibility.

You have no idea what you are talking about.

You can afford the nicest cardboard box on skid row at one million.

[Anonymous]

People are confusing near-term liquid net worth with net worth. The most common DMV $5M net worth is:

* $2.5M home with $1.5M mortgage ($1M)
* $2M retirement funds
* $500K 529
$ $1.5M brokerage

Only the $1.5M is accessible. Risk-free that throws off $60K per year. The mortgage payment on the above is $110K per year. This means you need an income of $300K to live, minimum. That's not wealthy. At $10M, you're throwing off $260K / year. Now you're wealthy.