Do you consider a net worth of 2.5 million "rich?"

[Anonymous]

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Anonymous wrote:I think you need to exclude retirement and college savings (if any). Presumably retirement isn't cpsomethi g you'd dip into now. I (not "we"...just my part) have almost a million in retirement alone. I don't count that. Like you, I don't include real estate equity in the calculation...and we have 6 homes and a 1/4th ownership interest in an office bldg. then you ask about the amount remaining, could that sustain you forever if you never worked? No...so in my opinion you aren't rich. If one of you has needs long term care in your 80's you'd have nothing left in your 90s. If you divorced, you'd have half of that..,and 1.25 million isn't life sustaining. We have more than you do and don't consider ourselves rich. Just keep plugging along...

So you don't feel rich because your money is in retirement accounts and you own 6 houses and part of an office building? Now wealth only counts if it is in a bank account, not an investment of any sort? I get that people are uncomfortable labeling themselves rich, maybe because it feels like "rich" people are supposed to be charitable or philanthropic, or maybe the rap videos and movies have you thinking rich means helicopters and 50 foot yachts. You own 6 houses. You are rich. No, you aren't Bill Gates or Oprah, but 99% of American would gladly trade your place for theirs.

As far as OP - you are rich. You have more at 38 than nearly all Americans will when they retire (if they retire). You could stop working now and be okay. You wouldn't be living a champagne and caviar lifestyle, but 75k/year goes a long way, especially if you are truly frugal. You could do at 38 what most won't be able to do at 60 or 70. Doesn't matter that it makes you uncomfortable, doesn't matter that you know people who have more, doesn't matter if you aren't satisfied and want more.

If it isn't money I'm touching anytime soon (real estate equity + retirement accounts), I don't consider it part of my immediate liquidity. It is like saying I'm going to be on easy street (future tense) when I inherit sometime in the future. Yes, retirement/real estate equity will be received at some point, but I don't consider it when looking at current assets). I have plenty of liquidity (without retirement/equity in real estate) but would it sustain me for life without lifting a finger again? No. Would it sustain me if I became ill and not another dime came in other than social security + some disability income? No. I don't consider 2.5 million for TWO people who will probably live for another 50 years enough. Therefore, I wouldn't say the OP is rich. It is a different question if she asked if she was better off than most...yes. Also, we don't know her debt load. That makes a HUGE difference. We have a low debt load - which helps us to continue acquiring savings. We also live a very low key lifestyle (millionaire next door types). If I don't consider myself rich, I don't consider her rich. I'm not saying that in a snotty way - just truthfully. Now...if she was 85 years old and had $2.5 million, I'd feel completely differently so long as it wasn't illiquid (real estate).

her net is 2.5 mil, so her debt load is irrelevant.
also, i find it funny that all these milionaire next door types estimg tuna cans in the present find millions of dollars insufficient to sustain them later in life.

I know she said her net is 2.5 mil, but you have no idea what her DEBTS are. For example, if she owes VISA $45,000 and owes student loans and has a high mortgage or many mortgages, or owes family members back, etc., then that is certainly a factor to consider. (The $2.5 million won't last as long if it is being used). Also, as for your last sentence, you're assuming she'll have that $2.5 million later in life. My grandmother needed round the clock care (Altzheimer's) for years. It was $15/hour x 24 hours/day x 52 weeks/year, not including housing, food, utilities, medical care, taxi fees, etc. You figure out how long that goes if you elect to live at home as long as possible - or your spouse does. See if that changes your perspective...

But it is not 2.5 that is being used... if her net is 2.5 mil, than she has more on hand with some debt. Though I doubt she has much debt.

As for your grandma, the care you described can be obtained much chepaer. It wouldn't be the same level of care, but certianly there are people with Altzheimers who are actual middle class. Your goal in life might be to make sure you would have an aboslute best care for 30 years of Altzheimer's, but that just like saying you are not rich because you can't afford a 747.

Her care WAS good, but I don't consider $15/hour to be the "best" care. That is what a babysitter makes.

she was serviced at home around the clock. i had illness in the family and after a few weeks, we realized we had to cut hourly care (especially during nights). what you did was wasteful and can be done with much less. it's not only millionaires who get sick, you know; there are millions of people with alzheimers in the USA.

and if you are worried about long term disability, with your resources you could certainly purchase insurance without as much as noticing. i am amazed that you are actually arguing here that you are not rich because if you got sick, you would be homeless or something. what about the rest of the usa?

She was a wanderer and woke several times in the middle of the night and was found on the streets. She also called 911/the police frequently during the day, thought others were trying to kill her,etc. having round the clock care wasn't wasteful. She could then-qualify for long term care (post diagnosis) and u less you have less than 2k of assets, the govt.wont cover (facility) coverage which would be inappropriate considering she had her own assets. I don't find it wasteful at all. It was HER money and she should have spent it for HER comfort while alive...not to mention safety. Show mea long term care policy who will insure a 92 year old woman....

She was certainly entitled to spend her money as she wished. However, if she really spent over 3 mil on her care, then she was in fact rich. Whether the way she spent the money was necessary is irrelevant, the fact is, she had 3+ mil to spend the way she pleased and that made her different frm 99.5% of Americans. That in itself makes one rich.

True...but she had the money in her 90s and that's my point. OP wouldn't have millions in her 90s unless she continues to save and amass wealth.

your grandma was rich at 90, OP is rich right now. doesn't mean she will be rich 30 years from now, but 'rich' is not a permanent feature of life. just like poor people can become rich (and then poor again!), rich people can become poor or middle class. doesn't detract from the fact that at some point in their lives they were rich.

I consider rich being set for life. She isn't set for life, so I don't consider her rich.

But she is set for life, just not the life of luxury. Most people her age wont spend anywhere close to 2.5 mil by the time they die.

[Anonymous]

I think this thread clearly shows that most people think $2.5 million is rich and set for life.

Most people could happily live the rest of their lives with this. Especially if they are willing to move. Working is optional, not required.

Some people say this is not enough. Those people probably want expensive homes, private school, luxury vacations, etc. etc.

So the final answer is that this is rich for most people, but not all.

[Anonymous]

I am rich, in the lord!

[Anonymous]

Yes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't get all the angst here- OP is rich, but not wealthy . They're upper middle class people amortizing their lifestyle over their lifespan, with no expectation of leaving generational wealth beyond their kids unless they decide to ratchet down expenses in retirement.

I am also rich, but to a much lesser extent- middle class with a nest egg that will allow a middle class lifestyle during retirement. The only thing our kids will likely get is some house equity.

My parents are not rich, middle class but reliant on current income and thus will have to work longer or ratchet down to a lower middle class lifestyle upon retirement. They will be comfortable, continue renting, not have to worry about food, but they won't have much disposable income and will leave nothing behind.

My grandmother was middle class, but poor. After she was no longer able to work, my parents and their siblings supported her til she passed away.

My Aunt and Uncle are wealthy upper middle class. They possess assets such that they could maintain that lifestyle without working. Their heirs could maintain that lifestyle without working, but it would end there. However, the wealth could last indefinitely should each generation work at maintaining it.

The upper class in this country are those with wealth that requires no personal work to maintain over generations.

The only thing I quibble with is your description of your parents. How can they be comfortable if they don't even own a house? How much ratcheting down can they do?

It's comfortable because between social security and a small amount of retirement savings they will be able to keep up with any rent increases without having to move away from family. What they don't have is capital they can afford to tie up in a house. The equity they had spent their lives accumulating was eaten up in '01 and '08 due to job loss and housing busts.

[Anonymous]

Yes, very.

[Anonymous]

Anonymous wrote:I think this thread clearly shows that most people think $2.5 million is rich and set for life.

Most people could happily live the rest of their lives with this. Especially if they are willing to move. Working is optional, not required.

Some people say this is not enough. Those people probably want expensive homes, private school, luxury vacations, etc. etc.

So the final answer is that this is rich for most people, but not all.

You are not set for life with $2.5M in this area, unless you live very frugally. Which can be difficult as having that much in the bank is awfully tempting...

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think this thread clearly shows that most people think $2.5 million is rich and set for life.

Most people could happily live the rest of their lives with this. Especially if they are willing to move. Working is optional, not required.

Some people say this is not enough. Those people probably want expensive homes, private school, luxury vacations, etc. etc.

So the final answer is that this is rich for most people, but not all.

You are not set for life with $2.5M in this area, unless you live very frugally. Which can be difficult as having that much in the bank is awfully tempting...

Nobody is forced to live in this area, certainly no one with that much money.

in any case, "set for life" etc is totally arbitrary criterion, not very different from owning a Ferrari.

What is rich is about is in fact quite simple - if you are top 1% in one of the richest countries in the world then you are rich. Just like top 1% is smart and top 1% is beautiful. And this is a conservative definition.

[Anonymous]

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Anonymous wrote:

Anonymous wrote:I cannot bring myself to read these pages and pages of postings on the frivolous question of whether a net worth of $2,500,000 makes you rich.

The answer, OP, to either your humble brag or clueless inquiry is "yes". You are wealthy, wealthier in fact, than most every other person in this country and certainly in this world. If someone were to submit this thread to the Chicago Tribune, the Los Angeles Times, or the Louisville Courier-Journal, the readers of those papers would probably be dismayed to know that the citizens of our capital, on whose shoulders so many important decisions, legislation, and policy-making rests, live in such a bubble of comfort and affluent competitiveness, so out of touch with most people.

I will share this story so that you can appreciate your wealth even more. Several months ago, I attended my volunteer day at an organization that provides the very poorest children in our surrounding communities with essentials for home and school, socks and underwear, soap and shampoo, hairbrushes and toothbrushes, books and backpacks, uniforms and coats. One little 3d grade girl put on her jumper and twirled around in delight as she told us "my mother will be so happy, she always wanted me to have one of these but we could not buy it." Another 2d or 3d grade child, a severely handicapped-at-birth girl who was partially blind, wore hearing aids, walked with crutches, and could speak very little, broke into applause and an enormous smile when we fitted her with a brand new, white polo shirt. It is very humbling and completely emotional when someone to whom the world has given so little, and who fate has dealt such a very difficult hand, is so appreciative of a little thing like a new shirt.

I agree that this thread is very out of touch, no wonder people refer to this area as living in the bubble. I can read the paper headline now: Washingtonians Disappear, Likely Absorbed by Themselves

LOL!!

Double Word to both posts. Your richness is not defined by what you don't have; it is defined by what you do have. And OP has a lot. This insistence that there are super billionaires out there, therefore, you are not rich, is tone deaf. And disingenuous.

Our HHI is 300K. We have some investments, though not in the millions. We are in the top 5% of local incomes. I feel pretty rich because 1. I have savings (retirement and college) 2. healthcare 3. Luxuries (not the Hope Diamond, but nice things) 4. I never have to worry about how my bills will be paid.

How I may be able to live in the future is not relevant to the now. For now, I am rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I cannot bring myself to read these pages and pages of postings on the frivolous question of whether a net worth of $2,500,000 makes you rich.

The answer, OP, to either your humble brag or clueless inquiry is "yes". You are wealthy, wealthier in fact, than most every other person in this country and certainly in this world. If someone were to submit this thread to the Chicago Tribune, the Los Angeles Times, or the Louisville Courier-Journal, the readers of those papers would probably be dismayed to know that the citizens of our capital, on whose shoulders so many important decisions, legislation, and policy-making rests, live in such a bubble of comfort and affluent competitiveness, so out of touch with most people.

I will share this story so that you can appreciate your wealth even more. Several months ago, I attended my volunteer day at an organization that provides the very poorest children in our surrounding communities with essentials for home and school, socks and underwear, soap and shampoo, hairbrushes and toothbrushes, books and backpacks, uniforms and coats. One little 3d grade girl put on her jumper and twirled around in delight as she told us "my mother will be so happy, she always wanted me to have one of these but we could not buy it." Another 2d or 3d grade child, a severely handicapped-at-birth girl who was partially blind, wore hearing aids, walked with crutches, and could speak very little, broke into applause and an enormous smile when we fitted her with a brand new, white polo shirt. It is very humbling and completely emotional when someone to whom the world has given so little, and who fate has dealt such a very difficult hand, is so appreciative of a little thing like a new shirt.

I agree that this thread is very out of touch, no wonder people refer to this area as living in the bubble. I can read the paper headline now: Washingtonians Disappear, Likely Absorbed by Themselves

LOL!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I cannot bring myself to read these pages and pages of postings on the frivolous question of whether a net worth of $2,500,000 makes you rich.

The answer, OP, to either your humble brag or clueless inquiry is "yes". You are wealthy, wealthier in fact, than most every other person in this country and certainly in this world. If someone were to submit this thread to the Chicago Tribune, the Los Angeles Times, or the Louisville Courier-Journal, the readers of those papers would probably be dismayed to know that the citizens of our capital, on whose shoulders so many important decisions, legislation, and policy-making rests, live in such a bubble of comfort and affluent competitiveness, so out of touch with most people.

I will share this story so that you can appreciate your wealth even more. Several months ago, I attended my volunteer day at an organization that provides the very poorest children in our surrounding communities with essentials for home and school, socks and underwear, soap and shampoo, hairbrushes and toothbrushes, books and backpacks, uniforms and coats. One little 3d grade girl put on her jumper and twirled around in delight as she told us "my mother will be so happy, she always wanted me to have one of these but we could not buy it." Another 2d or 3d grade child, a severely handicapped-at-birth girl who was partially blind, wore hearing aids, walked with crutches, and could speak very little, broke into applause and an enormous smile when we fitted her with a brand new, white polo shirt. It is very humbling and completely emotional when someone to whom the world has given so little, and who fate has dealt such a very difficult hand, is so appreciative of a little thing like a new shirt.

I agree that this thread is very out of touch, no wonder people refer to this area as living in the bubble. I can read the paper headline now: Washingtonians Disappear, Likely Absorbed by Themselves

LOL!!

Double Word to both posts. Your richness is not defined by what you don't have; it is defined by what you do have. And OP has a lot. This insistence that there are super billionaires out there, therefore, you are not rich, is tone deaf. And disingenuous.

Our HHI is 300K. We have some investments, though not in the millions. We are in the top 5% of local incomes. I feel pretty rich because 1. I have savings (retirement and college) 2. healthcare 3. Luxuries (not the Hope Diamond, but nice things) 4. I never have to worry about how my bills will be paid.

How I may be able to live in the future is not relevant to the now. For now, I am rich.

Sorry that's middle class

Rich means you can buy above and beyond, don't shop at the normal stores (think Tysons 2, whole foods only,) have staff that does your cleaning, cooking, driving, shopping etc...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I cannot bring myself to read these pages and pages of postings on the frivolous question of whether a net worth of $2,500,000 makes you rich.

The answer, OP, to either your humble brag or clueless inquiry is "yes". You are wealthy, wealthier in fact, than most every other person in this country and certainly in this world. If someone were to submit this thread to the Chicago Tribune, the Los Angeles Times, or the Louisville Courier-Journal, the readers of those papers would probably be dismayed to know that the citizens of our capital, on whose shoulders so many important decisions, legislation, and policy-making rests, live in such a bubble of comfort and affluent competitiveness, so out of touch with most people.

I will share this story so that you can appreciate your wealth even more. Several months ago, I attended my volunteer day at an organization that provides the very poorest children in our surrounding communities with essentials for home and school, socks and underwear, soap and shampoo, hairbrushes and toothbrushes, books and backpacks, uniforms and coats. One little 3d grade girl put on her jumper and twirled around in delight as she told us "my mother will be so happy, she always wanted me to have one of these but we could not buy it." Another 2d or 3d grade child, a severely handicapped-at-birth girl who was partially blind, wore hearing aids, walked with crutches, and could speak very little, broke into applause and an enormous smile when we fitted her with a brand new, white polo shirt. It is very humbling and completely emotional when someone to whom the world has given so little, and who fate has dealt such a very difficult hand, is so appreciative of a little thing like a new shirt.

I agree that this thread is very out of touch, no wonder people refer to this area as living in the bubble. I can read the paper headline now: Washingtonians Disappear, Likely Absorbed by Themselves

LOL!!

Double Word to both posts. Your richness is not defined by what you don't have; it is defined by what you do have. And OP has a lot. This insistence that there are super billionaires out there, therefore, you are not rich, is tone deaf. And disingenuous.

Our HHI is 300K. We have some investments, though not in the millions. We are in the top 5% of local incomes. I feel pretty rich because 1. I have savings (retirement and college) 2. healthcare 3. Luxuries (not the Hope Diamond, but nice things) 4. I never have to worry about how my bills will be paid.

How I may be able to live in the future is not relevant to the now. For now, I am rich.

Sorry that's middle class

Rich means you can buy above and beyond, don't shop at the normal stores (think Tysons 2, whole foods only,) have staff that does your cleaning, cooking, driving, shopping etc...

sorry I mean tysons galleria not 2

[Anonymous]

Definitely wealthy though obviously not as liquid considering you have 4 of this area's most expensive luxury items.

[Anonymous]

"Sorry that's middle class

Rich means you can buy above and beyond, don't shop at the normal stores (think Tysons 2, whole foods only,) have staff that does your cleaning, cooking, driving, shopping etc..'

And that's the problem we have here. People have a truly distorted version of what it means to be middle class. True financial security with luxuries and savings is NOT middle class.

Y'all need to stop watching the Lifestyles of the Rich and Famous. Those kinds of incomes are outliers. The top 1% of the top 1% is irrelevant.

If you make in the top 5% of income, you are rich. Sorry. Get this through your heads:Some people having more than you does not make you not rich, just as some people people making less than 10,000 a year does not make the 10K earners not poor.

[Anonymous]

Pp from above...meant to type 3.