How Rich is Rich?

[Anonymous]

Anonymous wrote:You are not rich. It’s all relative though. A $1.8 million house is middle class in my area.

That's not middle class. Grow up and understand what middle class is.

[Anonymous]

Anything above a net worth of $2.5 million is considered rich by most Americans. You are free of need.

[Anonymous]

Anonymous wrote:Op is rich in savings, rich in security and rich in family. It's OK to exhale and enjoy it for a moment.

I dunno...sounded like the wife is not the mom. I think there may have been more behind this complaint

[Anonymous]

Anonymous wrote:

Anonymous wrote:You are not rich. It’s all relative though. A $1.8 million house is middle class in my area.

That's not middle class. Grow up and understand what middle class is.

When you can’t afford full pay for a private college you are middle class. Sorry.

[Anonymous]

Anonymous wrote:Anything above a net worth of $2.5 million is considered rich by most Americans. You are free of need.

How is that rich living on 100k, assuming 4% rule on $2.5million
Especially for 2 person

[Anonymous]

Cool bragging, bro.

[Anonymous]

NET WORTH OF THE 95TH PERCENTILE

Top 5%

40-49
$2,551,500

50-59
$5,001,600

60-69
$6,684,220

Data source: Federal Reserve.

[Anonymous]

According to the Survey of Consumer Finances, the top 1% of households in the United States had at least $11,640,000 in wealth in 2022

[Anonymous]

Anonymous wrote:“My Average Middle Class Existence with a $5 Million Net Worth,” the DCUM story.

Lol so true

[Anonymous]

Anonymous wrote:

Anonymous wrote:“My Average Middle Class Existence with a $5 Million Net Worth,” the DCUM story.

Lol so true

Playing poor gets really tiresome.

[Anonymous]

You could try the Pew Research income calculator:

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

[Anonymous]

Anonymous wrote:You live in a 2 million dollar house and are asking this? Yes you are rich.

You can't leverage it unless you take a HELOC and invest the money so well you get positive cash flow after making loan payments, e.g. beat interest rate well enough. A house you live in is not an income property. In HCOLA your housing will be $$$ if you don't want to live in a complete dump, hers isn't extravagant anything for the area. Can she downsize and live in a 2 bedr condo? Yes, but not until kids are on their own. Again, it's a nest egg that cannot be cashed out just like 401K until some time in the future without huge penalty.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You are not rich. It’s all relative though. A $1.8 million house is middle class in my area.

That's not middle class. Grow up and understand what middle class is.

It's upper middle, so? It's still not rich. She can't live off this money not to mention live well. Money in your house equity (where you have to live) and in your retirement accounts is not accessible without penalties.

You can FIRE with less NW than OP, sure, but this means sacrifices and scrimping on lifestyle usually, esp. in HCOLA.
BUT
There is a point where there is enough wealth to have a nice home and even a second home, retirement savings and also have investment vehicles returning income you can live on, so that you do not rely on working. People can argue all day long how you can be working with 20 mil and have all of it buried in primary/second home and retirement accounts and I don't think it's quite realistic. Once you exceed a threshold of what a nice home in a good area costs you will not be likely upgrading endlessly to gobble up all your growing wealth (unless you are extremely stupid or won a lottery). Someone with 20 mil NW isn't going to buy 10-15 mil in RE to occupy themselves and have insane 401K, right? think. At some point your wealth spills into the active income producing investments and when it happens then you are truly financially independent but also comfortable and live well and can call yourself rich.

[Anonymous]

Why do you keep saying “throws out” when she says something?

[Anonymous]

Anonymous wrote:

Anonymous wrote:You live in a 2 million dollar house and are asking this? Yes you are rich.

You can't leverage it unless you take a HELOC and invest the money so well you get positive cash flow after making loan payments, e.g. beat interest rate well enough. A house you live in is not an income property. In HCOLA your housing will be $$$ if you don't want to live in a complete dump, hers isn't extravagant anything for the area. Can she downsize and live in a 2 bedr condo? Yes, but not until kids are on their own. Again, it's a nest egg that cannot be cashed out just like 401K until some time in the future without huge penalty.

That's actually all you need to leverage it (Getting a heloc).

And I don't know why you're talking about investing the funds from heloc to get a return above interest. Are you forgetting that your house is an appreciating asset?