Reply to What HHI is indisputably RICH in a HCOL area?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]NW over 10M.

Income is meaningless.  If you bring in 1M and burn through it in a year, you're still poor.... and probably stupid too.[/quote]

I take your point but sort of disagree. Like the other poster above, our hhi is around $2m. Obviously we are very lucky and don’t have to worry about money. But at that income, we also can’t just get whatever we want because as pp rightly points out, it would be very easy to burn through that money and not have much left over. Three one week vacations a year overseas on business class and high end hotels would be $150k for a family of 4. And then if you’re a clothes shopper, it would be really easy to spend $5k a month. Lots of things like this we -could- do (second houses, expensive private schools, college and grad school, home renovations, dining out, expensive cars every two years). Things that people at our income often spend money on and none of which, by itself, is extravagant. But if we did ALL those things, we would be in the red. So at our income, of course we are rich, but we’re not rich enough to not think about money at all. I work in biglaw and have a lot of partners who make a lot more than me like $3-4m and honestly they are all the same. None of them can just stop thinking about money. Also, most of us didn’t make that kind of money until middle age or later, and then there’s always the question of how much longer can I keep making this money (or so I have to keep making this money).

I would assume $5m or even better $10m takes those questions away and you can spend pretty much what you want (save for yachts and jets). [/quote]

Pp with 2-3m HHI. We have neighbors and colleagues who probably have a similar or even lower HHI and they really live it up. Our one neighbor is in the same field and likely has lower HHI but they live a very flashy life. DH has colleagues who drive around Ferraris and have jet memberships, yachts, etc. I’m sure many people would consider us rich but we live a relatively modest lifestyle. DH earns a seven figure bonus and we always invest that. We live off his base.[/quote]

And your neighbors and colleagues who live it up may not have much saved.  We didn't start flying business routinely until we were UHNW.  Before that, we might do business for us (not the kids) for Europe trips. The kids (teens) would sit tighter in economy plus/premium.  We would search for discounted hotels.  Now at UHNW, we all take business (sometimes the kids are still premium if it's too much---we view they should be happy the are not stuck in basic economy and grateful they are getting such nice vacations--they don't need to be spoiled by business).  But the $50K for a 7-10 day trip to Europe is an accurate cost.  We do it now, but didn't at $10-15M NW.  
We have enough saved that now we can generate $1M (pre tax) yearly and retire in mid-50s.  We can do that for 40 years and still leave each kid $5-7M.  And in reality, we likely won't spend that much after 70/75 (less travel, might only want one home then, etc so costs will go down).

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Pp here. We are not indisputable rich like OP is asking. We are high net worth but not UHNW. Our biggest expenses are school tuition and travel. [/quote]

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