The word “Millionaire” is often associated with an overly wealthy individual, one that has wealth beyond what most people can fathom. However, when one speaks with their financial planner, it is often agreed that in order to retire comfortably, one must have over a million dollars in investments to do so. So, when one reaches a million dollars in assets today, are they really considered ultra wealthy?
According to a recent book, “The Middle Class Millionaire”, 8.4 million Americans have a net worth between $1 million and $10 million (including home equity). The fact that these people are millionaires, yet are still considered middle class, shows that a million dollars is not what it used to be.
If you’ve ever spoken to your grandparents about their childhood, you’ve inevitably heard them utter the phrase, “When I was a kid, I could buy a candy bar for a penny!” After years of inflation, our dollar is worth about a hundred times less compared to 70 or 80 years ago. Roughly calculating the figures, if someone were a millionaire in that era, it would be equivalent to an individual having a net worth of 100 million dollars today, which is certainly still a rarity.
As time goes on, the term “millionaire” will continually lose its luster, and the phrase “billionaire” will take its place.
Getting back to the question though, “Are you rich if you’re a millionaire?” Being a millionaire today has become more common, but it still is a category all it’s own. Only about 4% of the United States population has a net worth of over $1 million dollars, meaning that it is still out of the reach of many. While I believe that through proper investing and planning, anyone can achieve this monumental level of a millionaire, most of us have not. The word “millionaire” is still a term for the rich.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.