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Anonymous wrote:This is too low. Of course I understand that my circle of friends is not a random sample, but personally know probably more than 25 people. And that does not include celebrities like Bill Gates, etc. I am not buying this number.

Similar. We personally know multiple billionaires with at least PT residence in the DC area (none of whom show up on any lists) and 25+ UHNW (on the low end) worth over $100M. Most are self-made from MC backgrounds but there’s some old money thrown in there.

So, there are about a total of 3 of your who are supposedly (in the online anonymous forum world) are HNWIs posting how common it is and how "easy" it is to make it and how you are surrounded by a whole bunch of ultra-wealthy people. And this somehow reflects the world where statistics are gathered using certain methodologies and where you know very well, majority of people struggle to afford life? I get it that your circles may include more of these people than any of us who aren't HNWIs are able to meet in our reality. It is your bubble bias (if you are even for real). There is also a lot of extrapolation of how many HNWIs *must be* out there, because there is a lot of money sloshing around in certain stocks, crypto, etc.

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Anonymous wrote:20M isn’t poor but it is far from rich. It is a solid upper middle class retirement number. You just have to hope that you don’t end up with any expensive healthcare costs.

This! Most in that level are not purchasing LTC, we are planning to self insure. At $12-15K+ per person per month, that can mean $300K/year+ for a couple, possibly more for great care. That's in a facility, if you want to stay at home much more

20M in a very conservative bond portfolio is paying you $600k-$800k/year. You can have your nice facility or even 24 hour in-home care without touching your assets.

$20m is undoubtedly more than enough to cover two people's LTC or other health issues. $20m is definitely rich. It's not multi-generational, go start a family office rich, but it's well over UMC.

Anonymous wrote:

Anonymous wrote:20M isn’t poor but it is far from rich. It is a solid upper middle class retirement number. You just have to hope that you don’t end up with any expensive healthcare costs.

This! Most in that level are not purchasing LTC, we are planning to self insure. At $12-15K+ per person per month, that can mean $300K/year+ for a couple, possibly more for great care. That's in a facility, if you want to stay at home much more

20M in a very conservative bond portfolio is paying you $600k-$800k/year. You can have your nice facility or even 24 hour in-home care without touching your assets.

Anonymous wrote:20M isn’t poor but it is far from rich. It is a solid upper middle class retirement number. You just have to hope that you don’t end up with any expensive healthcare costs.

This! Most in that level are not purchasing LTC, we are planning to self insure. At $12-15K+ per person per month, that can mean $300K/year+ for a couple, possibly more for great care. That's in a facility, if you want to stay at home much more

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Anonymous wrote:It feels low and also I have no idea how this data could even be collected, to be honest. Net Worth includes so many holdings that are not reported to any governing body in a given year unless they are/become taxable (which many are not until a specific event).

You can tell someone’s net worth after they’ve died.

Only if their estate goes through probate, and no one with 8 figures NW goes through probate.

You are literally required to calculate net worth in someone’s estate when they die if it is large enough. They need to file an estate tax return.

I wasn’t aware estate tax returns were publically available

Ha ha!

20M isn’t poor but it is far from rich. It is a solid upper middle class retirement number. You just have to hope that you don’t end up with any expensive healthcare costs.

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Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It feels low and also I have no idea how this data could even be collected, to be honest. Net Worth includes so many holdings that are not reported to any governing body in a given year unless they are/become taxable (which many are not until a specific event).

You can tell someone’s net worth after they’ve died.

Only if their estate goes through probate, and no one with 8 figures NW goes through probate.

You are literally required to calculate net worth in someone’s estate when they die if it is large enough. They need to file an estate tax return.

I wasn’t aware estate tax returns were publically available

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Anonymous wrote:

Anonymous wrote:It feels low and also I have no idea how this data could even be collected, to be honest. Net Worth includes so many holdings that are not reported to any governing body in a given year unless they are/become taxable (which many are not until a specific event).

You can tell someone’s net worth after they’ve died.

Only if their estate goes through probate, and no one with 8 figures NW goes through probate.

You are literally required to calculate net worth in someone’s estate when they die if it is large enough. They need to file an estate tax return.

Anonymous wrote:

Anonymous wrote:I had no idea I was poor with only $20m. I’ll work harder.

Work harder so you can buy more stuff! Otherwise it’s just sad!

Some of us don't buy more stuff, just more experiences. And finally a nicer home(s). Some of us were still relatively speaking "frugal" despite being worth $10M.

Anonymous wrote:I had no idea I was poor with only $20m. I’ll work harder.

Work harder so you can buy more stuff! Otherwise it’s just sad!

I had no idea I was poor with only $20m. I’ll work harder.

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Anonymous wrote:I know plenty of people in Arlington with a net worth of at least this much and in many cases much more. They live in the normal $2.5m McMansion and drive normal cars. Sometimes their kids go to private schools, and sometimes public. They are just regular people like you and I but they fly first or business class.

Curious how you know their net worth? Not once in my life (now late 40s) has anyone save my parents told me their net worth. Nor have I ever told anyone mine. I suppose you can surmise if the company they founded us sold etc , but I can't believe this is something people actually talk about (unless you're a money obsessed d-bag.)

.

Not PP you quoted but if they’re a NEO, it’s right there in the SEC filings. If they’ve ever invested in a company that went public and didn’t use an LLC, it’s in the SEC filings (as an example, lots of DC people made tens of millions - and more - on the recent Circle IPO - same for CAVA).

Founder exits are easy to figure out if you know what to look for, same with any early employees at FAANG or the early OpenAI/NVIDIA employees.

Gets harder when you throw in family $ (a lot of people who make it big via the above also have substantial family $) and other assets like crypto that you can’t tie to someone specifically unless they want you to know.

Oh dang! I would have totally invested in CAVA. 😭

me too! I need to figure out how to get notified of upcoming IPOs.

It doesn’t work like that - the people who make millions off of IPOs (who aren’t directly associated w the company as founder/employee/VC/etc) usually invest during the pre-seed/seed/series A. If you invest right before the IPO, a lot of times it’s overpriced, dips immediately after being listed, and you lose $.

Though Circle’s IPO was so underpriced I read even late stage private investors made a killing, but that’s exceptionally rare.

I’m clueless as to any of our friends net worth other than knowing they live well but not over the top. Our net worth is well north of the $20 million and while we have two nice homes our spending is far from indulgent. I drive a Subaru SUV. We are retired and we saved and invested well over many years and that was the key. Our focus now is on estate planning for our kids, grandkids and charity. I think there are a lot of people out there like us.

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Anonymous wrote:I have no idea who many there are in the US.

But I have come to realize that people are not frugal once they earn serious money.

I know this because we have 20M through investments and being actually frugal. The people we know who have large salaries do not live like us. I don't think anyone actually realizes how much we've accumulated, since we're still in our starter home, with our starter cars - and that's fine, we like flying under the radar! But I know we are definitely weirdo outliers

Similar story here. Worth $16M and live in a small house in a nice neighborhood. Public schools for kids and 1st is at a public university. Low to mid 50s and will likely retire when last kid gets out of college. Expect to have $30M by then. Drive old cars and buy reasonable clothes. But nice vacations with the kids.

James Grubman ("Strangers in Paradise") calls it the Fearful Frugal. A bit sad actually.

NP. This is essentially us, too, but I don’t think it’s sad at all. When you have a ton of money, you might realize that spending it on frivolous stuff really doesn’t make you happier.

I have a ton of money. That's false.

Yeah, the people who say having the money to buy nice things can’t make you happier just sound poor.

And people who state what you just did don't have money. Once you have it, at a certain point, more does NOT make you happier. You still have to do that yourself. It just makes it a bit easier when finances are not a concern

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have no idea who many there are in the US.

But I have come to realize that people are not frugal once they earn serious money.

I know this because we have 20M through investments and being actually frugal. The people we know who have large salaries do not live like us. I don't think anyone actually realizes how much we've accumulated, since we're still in our starter home, with our starter cars - and that's fine, we like flying under the radar! But I know we are definitely weirdo outliers

Similar story here. Worth $16M and live in a small house in a nice neighborhood. Public schools for kids and 1st is at a public university. Low to mid 50s and will likely retire when last kid gets out of college. Expect to have $30M by then. Drive old cars and buy reasonable clothes. But nice vacations with the kids.

James Grubman ("Strangers in Paradise") calls it the Fearful Frugal. A bit sad actually.

NP. This is essentially us, too, but I don’t think it’s sad at all. When you have a ton of money, you might realize that spending it on frivolous stuff really doesn’t make you happier.

And that begs the question why you need that money? After a certain point, if you can’t spend it, you’re hoarding it. Surely there’s a charity you can give a nickel to while Americans are struggling.

DP: we do give to charity. We also are creating trusts for our kids and grandkids, but they have to work and have a career (they do already). We pay 30-50%+ taxes on all our earnings and will be taxed upon death for some of it as well. We earned ours thru hard work and sacrifices (startups, long hours, lower pay in hopes of the company selling eventually). We contribute plenty to society. Some is ours to keep as a family