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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]No, to argue that some who has more money than the average family (you know the real middle class, the ones in the middle) will earn over the course of their entire lives is dumb. Just like it is dumb to assert that everyone who is between the 15% living in poverty and 0.001 with jets and boats is somehow one big middle class.[/quote]

I would agree that the .0001% with the jets and boats are NOT in the middle class.  I think it is far more gray than most of you (without the wad of dough) think.  Just because it is far more than most average families will have doesn't make it meet MY definition of rich.  Hello - MY opinion.  I am not dissing yours; don't diss mine.[/quote]

2.5 million is not just more than the average family will ever HAVE, it is more than they will even EARN or MAKE. Meaning even if they didn't pay any taxes (payroll, fed, state), didn't have any expenses, and never spent a dime they would still never touch that amount of money.  [/quote]

No, not true. The median household income is 50,233. Assuming 45 years working starting at age 20, that's over $2.25 million. If the family never spent anything, presumably they would put that money in a bank account. If they are paid $4,186 monthly and can average even a meager 3% interest, they would have $4.6M when they reached age 65.

If they wanted to have $2.5M to retire on, all they need is to invest $2,246.92 per month for 45 years at 3% (which again, is pretty conservative). So a family that earns the median income can reach $2.5M in 45 years and still have $1,939 per month to spend on food, taxes, etc.

HHI from here: http://en.wikipedia.org/wiki/Household_income_in_the_United_States#Household_income
Compound interest calculation from here: http://investor.gov/tools/calculators/compound-interest-calculator
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