If you have a networth of $1m plus do you consider yourself a "millionare"?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I find it ironic that I am a millionaire in net worth -- based on 401K balance and home equity, mostly...but I am living paycheck to paycheck.

You're not putting anything into home equity or 401k?

No...I am paying my Mortgage and putting in 12% total (including company match)

It's not really paycheck to paycheck if you're saving 12%

Apparently you are unfamiliar with the DCUM definition of paycheck to paycheck. It means they have no money left after they spend a bunch and save the rest. They are only steps away from having to (gasp) use some of their saved money if an emergency comes up, just like the poors. The poors save a bunch every month that they can rely on too, right?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't consider home equity of a primary residence or vacation home. I only count productive, or income-generating assets. 401(k)s, stocks in a brokerage account, equity on a rental house, etc. Your primary residence costs you money, it doesn't earn you money, so it's more of a liability.

We own our primary residence outright, plus we have about $1.5M in investments, so based on the latter, I consider myself a millionaire. We're very much Millionaire Next Door types--public schools, normal cars, vacations at the lake--but our $1.5M in investments can be expected to, on average, generate about an 8% annual return, or $120,000 annually before either of us gets out of bed or sits down in a cubicle. If we wanted to live off of it, we could safely withdraw and spend 4% annually, forever, which is more than the median household income in the country.

Where on earth are you getting a guaranteed 8 percent rate of return these days?

Nobody said guaranteed. Check the historic returns of the S&P 500.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't consider home equity of a primary residence or vacation home. I only count productive, or income-generating assets. 401(k)s, stocks in a brokerage account, equity on a rental house, etc. Your primary residence costs you money, it doesn't earn you money, so it's more of a liability.

We own our primary residence outright, plus we have about $1.5M in investments, so based on the latter, I consider myself a millionaire. We're very much Millionaire Next Door types--public schools, normal cars, vacations at the lake--but our $1.5M in investments can be expected to, on average, generate about an 8% annual return, or $120,000 annually before either of us gets out of bed or sits down in a cubicle. If we wanted to live off of it, we could safely withdraw and spend 4% annually, forever, which is more than the median household income in the country.

My primary residence has appreciated by more than half a million since I bought it (quadrupled in price). Sure I've spent some money on it -- mortgage interest, maintenance and some renovation, but overall it's a massive net gain. It's the best investment I ever made. How is it a liability?

Because over the long term, real estate only tracks inflation, and that's before maintenance and carrying costs.

[Anonymous]

We have a net worth of over 1 million (investments and property) and yet my car is being held together by duct tape. lol

[Anonymous]

According the the Feds & Forbes a "Certified Millionaire" is a person who has a million dollar's in assets EXCLUDING their primary RESIDENCE

[Anonymous]

You aren't a millionaire if it's your assets combined with your spouse. A millionaire is an individual who has $1 million in assets.

[Anonymous]

Anonymous wrote:You aren't a millionaire if it's your assets combined with your spouse. A millionaire is an individual who has $1 million in assets.

+1 The millionaire they are talking about back in the day is usually self-made.

[Anonymous]

We have a net worth of somewhere between 1.5 and 2 million. We're mid thirties. Technically yes we're millionaires but no I don't really consider myself one. If there's some survey talking about the "millionaire's" pov on things, I don't think I'd fall into that category. I'm not who they are referring to.

[Anonymous]

Anonymous wrote:I find it ironic that I am a millionaire in net worth -- based on 401K balance and home equity, mostly...but I am living paycheck to paycheck.

Yes if we're including 401k balance and home equity, we are millionaires but that is a function of getting up there in age. Have collected 401k for awhile and bought two very cheap houses pre-gentrification.

[Anonymous]

Technically, yes. Our HHI is low and we have a frugal lifestyle. We live in a neighborhood with multimillionaires, so don't feel particularly rich.

[Anonymous]

Great thread. I have a net worth of 1.4 million (1.2 excluding primary residence). Diversified assets including rental properties and retirement accounts.

Agree, I am broke all the time. I don't have too much Cash (around 45K). I make 250K flat. I feel broke all the time. I have credit card debt. I eat out a lot. Have a wife and three kids. Drive expensive luxury suvs.

My expenses are 15K a month.

[Anonymous]

Anonymous wrote:Our net worth is $1.4 million, but our income isn't high (by DCUM standards at least, we do very well in my opinion and I am grateful) - HHI is under $100k. Excluding our home our net worth is about $800k (some definitions exclude your personal residence).

When I picture a millionaire, it's certainly not me - not even close. Does the term mean anything any more? Aren't millionaires people who drive luxury cars, send their kids to boarding school, have personal cooks and maids and nannies, where designer clothes, socialize at the country club or on the golf course? Are billionaires the new millionaires?

OP? How have you managed to save so much with that HHI? Did you once make more? Are you close to retirement?

[Anonymous]

HaHaHa...of course you're a millionaire just like Dr. Evil! The only issue is that a million dollars isn't worth as much as it was in 1950. Only 2-3% of Americans have net worth over $1M. So you should feel pretty special. But, that means there are 10 million other people who are as wealthy or wealthier. You can pity yourself for not being super wealthy or you can be grateful for being so much more fortunate than 98% of the rest of the population.

BTW - If you and your spouse have household assets worth $1M, your individual net worth is just $500k. And, what are those of you with large assets but low income doing with your assets? Shouldn't you be earning far more from your investments than from your 9-5 paying under $100k? If so, when will you hit your number and start enjoying your money?

[Anonymous]

Anonymous wrote:According the the Feds & Forbes a "Certified Millionaire" is a person who has a million dollar's in assets EXCLUDING their primary RESIDENCE

I do not understand this exclusion at all. Does this mean that a person who owns their 99K condo outright has the same net worth as a person who owns their 999K house outright, assuming everything else is equal? Makes no sense.

[Anonymous]

Anonymous wrote:Great thread. I have a net worth of 1.4 million (1.2 excluding primary residence). Diversified assets including rental properties and retirement accounts.

Agree, I am broke all the time. I don't have too much Cash (around 45K). I make 250K flat. I feel broke all the time. I have credit card debt. I eat out a lot. Have a wife and three kids. Drive expensive luxury suvs.

My expenses are 15K a month.

I'm surprised you were able to save so much with your spending habits!