Posted on 02/12/2020 9:15:01 AM PST by SeekAndFind
The term "millionaire" once inferred that a person was part of society's upper crust, able to enjoy luxuries most only dreamed of, including vacation properties and early retirement. The Gilded Age of the 1980s was all about flaunting excess, as echoed in movies like The Wolf of Wall Street and television series like Dallas and Dynasty. Back then one was perceived to be "rich" if he or she had an income of around $100,000, according to a USA Today article released on May 22, 1987.
By 1989, American millionaires had become quite common: there were about 1.5 million of them. So how many millionaires are there today? According to Credit Suisse's 2019 Global Wealth Report, the U.S. has 18.6 million millionaires, out of the world's total of 46.8 million. In fact, from 2018 to 2019, the U.S. alone added 675,000 new millionaires to its total.
The number of millionaires in the U.S. in 2019, approximately 40% of the world's total.
However, being a millionaire today doesn't guarantee automatic happiness or well-being. Fidelity Investments recently released the findings of its Fidelity® Millionaire Outlook survey, which looks at investing attitudes and behaviors of more than 1,100 millionaire households. Overall, times are good for millionaires—81% of millionaires report being very satisfied with their lives. In fact, one in four millionaires reported that they are more satisfied with their lives than they were a year ago.
However, when asked about their future outlook regarding the state of the economy, millionaires in 2019 ranked the lowest confidence levels since 2006. So what's keeping millionaires up at night?
Fidelity's study revealed that "concerns about their health are the leading causes of stress for millionaires and non-millionaires alike." With the rising cost of healthcare, they reported being worried about their weight, their family's health, and personal health. As the average age of millionaires is in the 60s, it's common that millionaires are likely managing disabilities or serious health issues for themselves or their families.
The survey revealed that "more than one-third of non-millionaire and millionaire investors have health-related concerns, which account for the largest proportion of their overall stress across the four areas of total wellbeing included in the study (health, financial, work, and life)." Furthermore, of the subsection of millionaires who reported higher stress levels, "fewer than half feel confident about their health."
In addition to the surrounding competition, the cost of living in millionaire-dense areas is enough to chip away at anyone's net worth. In wealthy West Coast cities like San Francisco and Palo Alto, home to the mega-rich like PayPal co-founder and venture capitalist Peter Thiel and Facebook CEO Mark Zuckerberg, being a millionaire isn't enough to launch you into a life of luxury—or even make you stand out from the pack. Match.com founder Gary Kremen, explained to the New York Times that "you're nobody here at $10 million," referring to the concentration of money in Silicon Valley.
The ACCRA Cost of Living Index, published by the Council for Community and Economic Research, lists Manhattan, Honolulu, San Francisco, Brooklyn, and Washington DC as the top five cities with the highest costs of living. Manhattan, New York City, tops the list with a cost of living index of 254.7.
Another reason millionaires might not feel so rich is that from a day to day standpoint, they're not actually living much differently than the rest of us. Being coined a millionaire once led to the conclusion that one did a lot more play than work, a stigma that no longer applies to millionaires in the modern age. According to Spectrem Group, the average United States millionaire is 62 years old. Just 1% of millionaires are under the age of 35, and 38% of millionaires are 65 and older. West Coast millionaires skew slightly older.
Further, a large number of individuals in the Mountain states and Texas never plan to retire, and millionaires in the Northeast and West Coast make up the largest percentage who don't have plans to retire for at least 10 more years.
According to "The Millionaire Next Door: The Surprising Secrets of American's Wealthy" by Thomas J. Stanley and William D. Danko, frugal living may also contribute to the insecure self-perception millionaires have regarding their wealth. Their research found that the average millionaire lives on less than 7% of his or her wealth, wears inexpensive suits and drives American-made cars that are not the current year's model. Throw the lagging housing market and a volatile stock market into the mix, and it looks like millionaires may not be any better off than the rest of us when it comes to the ability to rest on our financial laurels.
Given all these factors, what will take millionaires to feel rich again? Those surveyed by Fidelity pinpointed $7.5 million as the investable asset level that would make them feel back on top. (Becoming a millionaire is not as hard as you might think—it just takes time.)
And why pay attention to the millionaire "woe is me" findings? They could truly be the key to your own financial future. In a Fidelity-released media statement, Michael R. Durbin, president of Fidelity Institutional Wealth Services, explained that "millionaires' outlook could be seen as a leading indicator of the direction of the economy."
Whether you envy millionaires or shake your head in awe at their lack of financially secure feelings, you can stand to benefit from following their lead, whether you choose to get back into the market, scale back your spending, or continue to live just as you do. One day, you just might be a millionaire, too.
Have a buddy up in Mendocino north of San Francisco, 40 acres of hillside full of redwoods and looking over vineyards, “land rich” is the term I believe, probably worth $2million but not a dime in his pocket, was happy to get his $750 social security when he turned 62, most income he ever had outside of growing weed and with it legal now he lost that money.
You can either look rich or be rich - doing both is very difficult.
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Never heard that one before. Thanks for sharing this bit of financial wisdom which, based on my observations, is quite true.
I think that Bernard Baruch (a man who became wealthy as an investor in early 20th Century) was asked: “How much is enough?”
His answer was something like, “Just a little bit more.”
-PJ
I’m retired and don’t believe that spending really declines all that much in retirement. Most of us have become so used to our lifestyles that its very difficult to step down to a lower standard of living. And with more time on your hands you’ll keep thinking of stuff to do, things to buy, and places to go with all that newfound freedom.
Start building a rising income stream that will keep pace with inflation.
Ehh.....
You are a NOBODY unless you can afford and operate a “Aqua Yacht”.
Bill Gates is reported to be considering buying one...
https://newatlas.com/marine/sinots-hydrogen-powered-aqua-superyacht-concept/
Dad said when you reach the point in life when time is more important to you than having enough money you’ve arrived. You are rich enough.
Dad was an engineer and a really good one but he was more artist and bohemian even than he was an outstanding engineer.
I’m an engineer as well. I’m feeling like time is more important than being concerned about having enough money so I guess I’ve arrived, I’m rich enough if only in my own mind.
A guy told me once when I was headed over seas to work, “You have one bucket for money and one bucket for crap. When one bucket gets full, you go home!” I applied the same test to retiring and retired.
The problem is, if you make a mistake about retiring, figuring you have enough money, by the time you realize it or some disaster gives a clear signal you are going to fail, it is too late to do much about it. 30 years or so is a long time.
If you feel compelled to tell someone you are not bored in retirement, you probably are so I won’t. If anything I have too many interests though. Being bored is inexcusable in this day when so much information is at your fingertips. Being bored means you have not looked around enough or thought hard enough to find something that needs to be done or that you really want to do.
My hat is off to people who never retire. Either they can’t or truly love all about what they are doing. If they latter, I am truly happy for them. I could not do it anymore mostly because I don’t want to. The money bucket was full enough but the crap bucket was pretty much brim full.
It is a rainy muddy day here today and I’m going back to Martin House building. They will throw a fit if their houses are not available in the next couple of months.
-PJ
Most people forget that while you may plan the next 20 or 30 years of your life, there are others with more power than you - whom you never see or suspect, that can pull your silver cord (Ecclesiastes 12:6) and end it in the blink of an eye.
Life is a vapor and money is only temporary.
James 4:14
Psalm 144:4
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That is true. And good.
I know a man who says that he thinks he now has enough money to last the rest of his life. He also says that he hopes to live long enough to spend most of what he has saved.
Some moron democrat here in KC said you can’t live in Naples Florida unless you have $15M to “play” with. I about threw up.
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Just another lying, whining Democrat. While Naples FL is a very upscale area needing $15 million to live there is just absurd nonsense.
A lot of millionaires are in that position.
Asset rich and cash poor.
Keeps you working and off the streets.
Exactly
:)
Yes, I fully own them, aside from my primary residence.
Maintenance and taxes are stable.
Tenants are always a mixed bag.
Property prices are trending upward and have been for a long time.
It might be an overstatement to say that I feel ‘broke’, but I sure don’t feel like the guy on the monopoly board.
One of the rules of real estate success for me has been to never buy a property where I had to bring a pistol to collect the rent or even just inspect the property.
Thanks for that advice. I love my job. After 27 years at the same place; I have evolved into a retirement-track oriented position. No hard work, no stress, great benefits, etc.
So why retire? I’m in good health at age 61. Just got lab work done:
HDL: 38 LDL: 110 TOTAL: 190.
B/P 138/85
DIABETIC AIC: 5.2
6’00” 198 LBS.
(sorry for bragging. But I’m happy and healthy)
I know what you mean. By the time we became millionaires (on paper) it was nothing to write home about.
I have evolved into a retirement-track oriented position. No hard work, no stress, great benefits, etc.
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My last job had such great pay and benefits it was very difficult to leave. And it was a post retirement job!
I’ve never had trouble finding things to do with my time. I enjoy every day of retirement and the personal freedom it affords me. Hope the same for you.
Well, by your description, you are IN FACT, well off. You are in fact, much better off than most Americans. I don’t expect you to be Warren Buffet, but hey, who is?
Maybe you worry too much...
I actually met Stuart Margolis once. He was in a theater production at University of Memphis with a friend of mine. Short meeting, just shook hands and said “Hello” - he was polite.
You are very welcome. I’ve noticed it to be true in many cases, too.
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