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

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[quote=Anonymous]$2.5 M net worth, excluding the house, is great. Clearly OP is doing better than the vast majority of people in this country. But is she rich, or wealthy? That depends on how you measure.

Compared to the average person in the U.S., OP is in the top 1%. She's doing $2.4M better than the average person, whose net worth is about $70K. So rich compared to the average person, clearly. But a couple with 450K in their 401k and something other than negative equity is also pretty rich compared to the average $70K person. So that can't define rich overall.

Is she champagne bubble bath and limousine rich? No. 
$2.5 M is about the minimum one would need to retire with a decent income. If you could get a 6% return, that would be $150,000 per year. That's good, and if she could get 10% it would be $250K per year. That would be quite good, but it's not the kind of money that gets you Ferraris and a villa in France. Also, these kinds of returns are difficult to get without incurring significant risk. [/quote]

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