Reply to Why a 300-400k salary doesn't feel rich

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We have a household income of $250k in northern Virginia with three kids and we are unquestionably rich.

Only financial worry I have is how to pay for college when all three are in college at the same time in a few years.

Everything else in my life is free of financial worry.[/quote]

Aww. A middle class wine mom pretending she's rich on her 250k.

Honey, let me tell you what rich is. Rich people don't worry about paying for college. Rich people pay 90k tuition checks without blinking or worrying about opportunity costs. That's rich. You're middle class. [/quote]

It’s true. I think what’s happening is people are “counting their blessings” and thinking how truly advantaged they are compared to the poorest in our country.

Which is contentious to do, and of course compared to the average HHI (which is shockingly low) you are indeed well-off. But rich? Well. Like PP said, rich don’t worry about how to pay for college. I myself am luckier than many, but I know rich, and at 300k I am much closer to the poorest than to the wealthy. The rich in this country are loathsome on a whole. [/quote]

Wait… at 250k you’re agreeing they’re middle class but at 300k you “know you’re rich”. So is the cut off 275k?  Someone explain.[/quote]

No one is rich until they have accumulated at least 10M. The law partner making $2M isn't rich if they only have a few million saved. I do my 40yr old SIL's taxes and she makes 900k and has about 200k to her name. She's more or less broke and I laugh about it every year because she thinks she's "rich". I am years younger than her make not too far off from her, have accumulated enough money for two lives, but she thinks we are probably so behind her.[/quote]

Agree $10M is a good cut off point for transitioning into rich. at $10M you can have a 4% draw giving you a 400k HHI (taxed at capital gains!) without working, plus you have access to all that capital if you want to, which is different from a working 400k HHI whose main capital is 2M in retirement savings plus 500k in equity. And of course it goes up greatly from there.

If your net worth is below $10M you're just in the upper parts of the upper middle classes.

Not perfect but as good a rule of thumb as any. [/quote]

This is just a random, arbitrary line you have drawn in the sand. [/quote]

DP here:
It's not that far from the truth. Maybe $7m in invested assets? The entire point is that being "rich" means having money/assets work for you in order to free up your time while still enjoying a high standard of living. You probably need a corpus of $7m+ in order to kick off a sizable amount of annual income to maintain an UMC lifestyle. $10M is the number you want in order to maintain an UMC lifestyle in NYC, SF, Palm Beach or other VHCOL locales. [/quote]

DP. Where is the definition of rich coming from? Can you provide a cite?[/quote]

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