Reply to How does life change once you hit $1 million?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I’m single, 41, net worth around $800K including home equity.  I’ve always been obsessed with money but, until recently, never as good at making it as some of you here.

I should hit a $1 million net worth in about two years just through savings, or maybe in three years if the market goes down further.  I’ve always viewed $1 million as a magical number. Obviously with inflation, the value of that number comes down each year, but it still seems pretty special.

Just curious to hear from all you rich people:  how does life change once you get to the promised land?  Do you feel a sense of relief and accomplishment? [b] Or is it anti-climactic and just another milestone and you get back to work?[/b][/quote]

Sorry to say, but for me it was the latter. But I never was that obsessed with money.  It was more like, huh, past that amount. When I was little I thought a millionaire meant someone wearing a monocle and a top hat and having so much money it spilled out of their pants, but in reality it was like just a brief slightly shinier feeling towards a number in the Excel file (not to mention that when the market went down soon after it went below 1m again).[/quote]

Same here, our lifestyle didn't change, so there was nothing to notice or celebrate. I also don't consider myself "one of the rich people" who have "made it to the promised land." UMC compared to the rest of the nation. MC for the immediate area and this board. Our net worth is the house, retirement accounts, and 529, so while we are certainly doing well compared to the average American, we are not superfluously wealthy. I suspect the PP who said $10m is the new $1m is on target. Maybe $5m if you're older and close to retirement.

My biggest worry that keeps me grinding is that my parents didn't save enough for retirement and don't understand how insanely expensive a good [b]nursing home[/b] costs, and that we will foot some part of the costs in the future. And then when it's our turn, I want to make sure we have enough extra money saved that we can cover anything and everything with our own savings so our kids don't have to worry the way I do now. [/quote]

Most people don't spend too much time in nursing homes--do you have reason to believe your parents will need it? People in my family live very long (several past 100, most mid to upper 90s) and out of all my great aunts, grandparents, great grandparents (maybe 30 elderly people in my life) only 3 needed a nursing home for longer than a month, and only one longer than a year (and under 2).[/quote]

I do, actually. My father's side of the family has a history of dementia with good physical health, so it drags out for years. One of my coworkers had both of his parents in a facility for dementia at the same time, and the cost was ~$12k a month. I'm using the term "nursing home" loosely - I guess "assisted living" might be more accurate? Either way, it is still incredibly expensive. There was a WaPo article on it last week: https://www.washingtonpost.com/business/2023/03/18/senior-care-costs-too-high/

So one scenario that I have to consider is that if my father ends up in a nursing home that will drain their savings in 2-3 years (with the real possibility of needing to be there 5-6 years), do we spend it all on him, and then when it's my mom's turn there is nothing left? Do I dip into my own retirement and savings to pay for them? Do I leave them to the mercy of medicare and whatever facilities we can find with an empty bed? So not to burst OP's bubble, but $1m net does not make me feel rich or living in the promise land.

OP, it is a very good milestone and without a doubt something to be proud of. It's more than most Americans will ever have. I'm sorry so many people on this forum (myself included) and being debbie downers, but we are answering your initial question honestly. [/quote]

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