Anonymous wrote:

Anonymous wrote:2.5 million is not rich. I mean come on. It's middle class. You're right there with the teachers, nurses, librarians, and everyone else making under $100K. duh.

LOL!!!

HP here, I am a nurse, and only part time by choice,
My net worth is in the area of 2.5 million.

Point of comparison: Rapper 50 Cent, net worth $100M. That is rich.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
If you can stop working and live off your investment income and they draw 450K a year you are rich.

Anonymous wrote:
You'd have to have $11,250,000 in the bank to get this.

Anonymous wrote:
You can take $450k a year from $2.5M for about 5 years. You see that, right?

To help this person (and try to spread more financial literacy)... a "rule of thumb" safe withdrawal rate from your assets is 4% a year. A safe amount is an amount that you can safely withdraw and still be 99% certain that your money will last the rest of your life. Using that rate, you need $11.25 million "in the bank." In the bank means that you have it invested in a diversified portfolio. A diversified portfolio means that it is in a variety of stocks (equities), bonds, real estate (not the house you live in).

Yes, if you put $2.5 million in your mattress and spend $450k a year, it will last five years, assuming you don't have a house fire. And you would miss out on a lifetime of $450k a year of income.

Thank you for this analysis. we manage to spend through $300K yearly. So if we started spending our capital, yes, it would run out in 5 years. It took way longer than 5 years to earn that capital. So, no not rich, but comfortable if you are careful.

So because you spend 300k a year you aren't rich? What? How did you get to the point that you can have that much money if you are so simple? We live pretty well (700k home, nanny, etc) and the only way we could spend 300k is if we accidentally paid cash for a new ferrari.

700K house in this area is very middle class. no second home? we buy a "new Ferrair" every year in private school bills. Never did say we were simple, just middle class.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You can easily spend 350K a year on a nanny, preschool, car payment on 2 new cars and normal sized new home with little down, summer and winter vacations, cleaning service and lawn service.

The point is the above doesn't describe a rich person, just upper middle class.

you are nuts.

I guess some of us have higher goals then other and different definitions of what constitutes rich.

By the way why didn't the government say 100K HHI is rich and instead set the value at 450K HHI?

More taxes?

Anonymous wrote:

If you can stop working and live off your investment income and they draw 450K a year you are rich.

You'd have to have $11,250,000 in the bank to get this.

This thread highlights our financial illiteracy and shows why we need to keep talking about money.

Why is money such an emotional topic? It's just numbers! It it because the US society measures success with $$?

Yes, that is our new goal.

Anonymous wrote:

Anonymous wrote:How is this not making it "for real?"

Its like winning a lottery. The money is real but there is no comparable income stream. I still consider OP rich, but it doesn't feel that rich anymore.

This is why you'll never be rich.

Anonymous wrote:2.5 million is not rich. I mean come on. It's middle class. You're right there with the teachers, nurses, librarians, and everyone else making under $100K. duh.

LOL!!!

sometimes rich people aren't that bright.

2.5 million is not rich. I mean come on. It's middle class. You're right there with the teachers, nurses, librarians, and everyone else making under $100K. duh.

It is riiiiiiiiiiiiich! Jesus.

If you have trouble carrying that 2.5 million burden I'd be happy to take it off your shoulders.

Anonymous wrote:2.5 isn't rich. Get over it.

Yes it is. Only 16 percent of US households have a net worth of more than $500K, according to http://smartblogs.com/finance/2012/11/26/where-wealthy-americans-live/

Yes, the DMV holds some of the wealthiest households in America, according to that article, led by the Potomac, MD, area code 20854 with an average of $1,856,539.

So yes, it is rich.

Get over it yourself.

Give me a fucking break. If you think 2.5 million dollars is "comfortable"? You need a serious reality check. You need medication, therapy, Jesus, something. Un fucking believable, only in DC would this even be a question. SKFHDUEHEHSHDJXJF.

2.5 isn't rich. Get over it.

There is a difference between being wealthy and feeling secure. OP is like many of us who are struggling with feelings of anxiety, and implicitly wondering why that's the case if, by objective standards, we are considered "rich."

And, to boot, a lot of people with large net worths, in this area at least, have acquired them through accumulated wages, so we're used to working hard and not necessarily sitting down with financial planners to figure out what our wealth means in practical terms, should we find ourselves out of a job or confronting unanticipated expenses.

In other words, give her a break. She said she's ready to move on, and so should you. A $2.5M net worth really isn't that high in some of the rarefied circles in which some DCUM posters reside.