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Originally Posted by Packer Fan
Out of 64 posts I think I read about 4 decent ones that addressed the actual OP and the issue correctly. A few notes -
1. The term Millionaire refers to a total net worth of over a million dollars. This is not up for debate - it is the definition. It is what you own minus what you owe. If you have a $500K paid for house in TV and $500K in an IRA, with no debt you are a Millionaire. I find it crazy that many in this thread tried to say "this is my definition". It is sort of like saying you have a different definition of what a fish is... of course Kiplinger's article is just talking about investable wealth, so that is not even correct.
2. At a minimum, I would say that just to pay for a Premier home and the upkeep, a person would either have to be in crazy amounts of debt or be a millionaire. They start in the $600K range and go up from there. There are also a large portion of designer homes over $500K.... I believe I read somewhere that over 50% of the homes in TV are paid for with cash.
3. Someone made the excellent point that $1,000,000 only throws off $40k in annual income - that is true. Millionaires are pretty common compared to 20 or 30 years ago just due to inflation.
4. In addition to the Millionaire next door, there is an even better book out now by Chris Hogan who works for Dave Ramsey - Everyday Millionaires. #171: The biggest study of everyday millionaires in 25 years - with Chris Hogan - Afford Anything
5. Kiplingers is a very reputable publication - I am sure they got their information from good sources (tax rolls?) Not sure where, but I am sure it has at least some credibility.
6. The reality is that with 401Ks and IRAs it is not that hard to become a millionaire. Just saving $550 a month from 30-65 invested in a stock/bond mix gets you there. That just is not that much. That is not even counting the company match most get.
I think the best post said live on less than you make and invest the difference. That is how almost all millionaires get there. I look around this place and it is not hard for me to believe the Kiplinger article at all. |
Au contrare. According to the referenced Kiplinger article, the definition is “a million in investible dollars, EXCLUDING real estate, pensions, etc.” A higher bar for sure.