Reply to Why are people so hesitant to call themselves rich/wealthy when they are by any definition?

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Reply to "Why are people so hesitant to call themselves rich/wealthy when they are by any definition?"

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[quote=Anonymous][quote=Anonymous]1) lots of research suggests that people think of their status relative to those they’re around. Lots of posts on this thread confirms that.

2) it takes a lot of wealth to maintain an UMC lifestyle through 20-30 years of retirement and maintain real buying power. For example, if you want $200k of income for 30 years,  invest conservatively during retirement (6%), and inflation is 3%, you need nearly $4 million. If you told someone you had $4 million, they’d say you’re rich. If you told them you make $200k, they wouldn’t. [/quote]

But this ignores the fact that most retirement plans assume you'll own your home by the time you retire. If you told someone you make $200k every year AND own your home outright, they would absolutely consider you rich because you aren't paying a mortgage. Also, in retirement you are no longer having to take money out of your income to save for college or retirement. You don't have to pay for kids activities and food and clothes and travel. So that $200k is literally just for non-housing living expenses. That person is rich! They can go out to eat several nights a week, take expensive vacations, buy new clothes when you feel like it, outsource house cleaning and landscaping. And they can do all this without having to go to a job every day. Rich![/quote]

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