What HHI is indisputably RICH in a HCOL area?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NW over 10M.

Income is meaningless. If you bring in 1M and burn through it in a year, you're still poor.... and probably stupid too.

I take your point but sort of disagree. Like the other poster above, our hhi is around $2m. Obviously we are very lucky and don’t have to worry about money. But at that income, we also can’t just get whatever we want because as pp rightly points out, it would be very easy to burn through that money and not have much left over. Three one week vacations a year overseas on business class and high end hotels would be $150k for a family of 4. And then if you’re a clothes shopper, it would be really easy to spend $5k a month. Lots of things like this we -could- do (second houses, expensive private schools, college and grad school, home renovations, dining out, expensive cars every two years). Things that people at our income often spend money on and none of which, by itself, is extravagant. But if we did ALL those things, we would be in the red. So at our income, of course we are rich, but we’re not rich enough to not think about money at all. I work in biglaw and have a lot of partners who make a lot more than me like $3-4m and honestly they are all the same. None of them can just stop thinking about money. Also, most of us didn’t make that kind of money until middle age or later, and then there’s always the question of how much longer can I keep making this money (or so I have to keep making this money).

I would assume $5m or even better $10m takes those questions away and you can spend pretty much what you want (save for yachts and jets).

Pp with 2-3m HHI. We have neighbors and colleagues who probably have a similar or even lower HHI and they really live it up. Our one neighbor is in the same field and likely has lower HHI but they live a very flashy life. DH has colleagues who drive around Ferraris and have jet memberships, yachts, etc. I’m sure many people would consider us rich but we live a relatively modest lifestyle. DH earns a seven figure bonus and we always invest that. We live off his base.

And your neighbors and colleagues who live it up may not have much saved. We didn't start flying business routinely until we were UHNW. Before that, we might do business for us (not the kids) for Europe trips. The kids (teens) would sit tighter in economy plus/premium. We would search for discounted hotels. Now at UHNW, we all take business (sometimes the kids are still premium if it's too much---we view they should be happy the are not stuck in basic economy and grateful they are getting such nice vacations--they don't need to be spoiled by business). But the $50K for a 7-10 day trip to Europe is an accurate cost. We do it now, but didn't at $10-15M NW.
We have enough saved that now we can generate $1M (pre tax) yearly and retire in mid-50s. We can do that for 40 years and still leave each kid $5-7M. And in reality, we likely won't spend that much after 70/75 (less travel, might only want one home then, etc so costs will go down).

Pp here. We are not indisputable rich like OP is asking. We are high net worth but not UHNW. Our biggest expenses are school tuition and travel.

[Anonymous]

We are UHNW but don’t live like it. With our estate planning we give away more every year than we spend on ourselves. We have a very comfortable life and we are just fine with that.

[Anonymous]

I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

[Anonymous]

Anonymous wrote:I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

How many years of making 2m-3m did it take before you felt comfortable enough to buy the 7m primary and 3m second home?
In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

[Anonymous]

Anonymous wrote:I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

Yes you have a lot of money. But my prior CEO stock portion along jumped around 1.2 billion last year. So he makes 2 million like ever hour.

My boss before made $120 million one year. Imagine a $5 million bi weekly paycheck?

[Anonymous]

DH makes high-7-figures and has stock compensation that has appreciated significantly over the years. We live a very comfortable life in Manhattan---large apartment, private schools for DCs, second home, nice vacations---and don't sweat big purchases. We aren't flashy people, and a lot of thought goes into charitable giving and making sure DCs will be well-set financially as adults. I'm thankful that we can afford things like college tuition and to be able to supplement my parents' assisted living and medical-related expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

Yes you have a lot of money. But my prior CEO stock portion along jumped around 1.2 billion last year. So he makes 2 million like ever hour.

My boss before made $120 million one year. Imagine a $5 million bi weekly paycheck?

I think this probably only exists in your imagination because these guys likely received most of their compensation at the end of the year during bonus season. I'm betting they receive a normal $5 to 10 million salary, and then hope that their company performed well enough for them to get that $100M bonus in stock.

[Anonymous]

Anonymous wrote:I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

We have a 2-3m HHI. We bought our primary residence when we had a $1m HHI. Bought it for $2m and it is now worth $4m. House is almost paid off. We could pay it off now but it is a 2.8% interest rate. Wondering if we should upgrade to a $5m house or build our dream house. I have 2 teens and an elementary child so the older 2 wouldn’t get much use out of the new house. Our house is already 10,000sf+.

Also have a $2m beach house. I can’t justify buying a $5m beach house that we will use 1-2x per year.

[Anonymous]

Anonymous wrote:Hi? Anything after $800k if you are relying on income. If one spouse looses their job and the other one still has $400 coming in they’ll be ok.

Nw over $6M also rich if at least half is liquid.

This but NW over $10M, liquid and excluding home.

[Anonymous]

Anonymous wrote:I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

What do you do?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

What do you do?

Sit around on DCUM lying about my compensation trying to make everyone else feel inadequate, of course.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

We have a 2-3m HHI. We bought our primary residence when we had a $1m HHI. Bought it for $2m and it is now worth $4m. House is almost paid off. We could pay it off now but it is a 2.8% interest rate. Wondering if we should upgrade to a $5m house or build our dream house. I have 2 teens and an elementary child so the older 2 wouldn’t get much use out of the new house. Our house is already 10,000sf+.

Also have a $2m beach house. I can’t justify buying a $5m beach house that we will use 1-2x per year.

In reality, why own a beach house if you literally only go for 1-2 weeks per year? Why not just decide in advance when you are going and rent a really nice mansion? Serious question. Because we contemplated purchasing a condo in Hawaii, then concluded until you are using it 4-5 months of the year, you might as well avoid the costs and hassles and just rent when you go. If you want to rent out your own condo/home, well then you have to still plan in advance when you want to go. So avoid the hurricanes, the insurance, the fires, and stress of it all and simply rent. In the end you will end up ahead. Also will avoid friends and family wanting to rent/use the place for free.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have been incredibly fortunate and my income went through the roof. By $2M there is little that one cannot afford (except private jet Travel). By $3M you can generally afford to get the best of anything anytime that you want it and you literally stop noticing prices for small things because it literally will never matter. Anything less than a $100 will never move the needle ever. Less than $1k but over $100 I would notice but it’s still too small an amount to care about. Single digit thousands I consider but it’s too petty an amount to consider running it by my spouse.

In all fairness we live in DC, so in NY or SF it might require more. But for understanding sake only. We have a $7M primary and $3M secondary residence.

What do you do?

Now? I retired young. I manage my assets and volunteer.

[Anonymous]

Anonymous wrote:DH makes high-7-figures and has stock compensation that has appreciated significantly over the years. We live a very comfortable life in Manhattan---large apartment, private schools for DCs, second home, nice vacations---and don't sweat big purchases. We aren't flashy people, and a lot of thought goes into charitable giving and making sure DCs will be well-set financially as adults. I'm thankful that we can afford things like college tuition and to be able to supplement my parents' assisted living and medical-related expenses.

High 7 figures like 7-9mm?

[Anonymous]

5m. 1m is undoubtedly rich but it’s 1st class rich, not private jet rich.