- cross-posted to:
- news@lemmy.world
- cross-posted to:
- news@lemmy.world
A million dollars is not what it used to be.
Only 36% of American millionaires consider themselves wealthy in 2025, according to new research from Northwestern Mutual.
The finding comes from the 2025 Planning & Progress Study, updated in early November. It draws on a Harris Poll survey of 4,626 Americans, including 969 people with household investable assets greater than $1 million.
Even the wealthiest Americans worry about money, the study found. They fret about having enough of it, deciding how to spend it and whether to pass it on to heirs.
I’m pretty sure if someone gave me a million dollars as someone who doesn’t have anything in the bank at 36 right now, I could retire tomorrow without an issue. It wouldn’t be a life of luxury, but it would be better than I’m living now
Interest could net you around 45k a year. While thats not inconsequential, thats also not allowing for any growth, so itd be 45k every year, only. Based on historical data, thatd be about the same buying power as $15k in 40 years.
I mean I could buy a house somewhere in a small town for 250k, and live off 20k a year without issue. That’s what $385 a week. That sets $13,000 a year aside for emergency funds (and property taxes) and/or just growing back the principle to a million. Id probably be able to die at 75 with half a million in the bank
Most people set the bar slightly higher than “technically surviving”, for their retirement.
Most people retire at 65+ with a house paid off as well. Spending 125,000 a year in retirement is a crazy amount. I’d have to go on a $15,000 vacation every other month and have $30,000 left over for food. Id call that living large for sure.
You’ve got a large window at 36. The earlier you retire, the bigger buffer you need. 4.5% is an insanely high withdrawal rate for that time frame. You become very susceptible to any downturn in the market
Are you in the US? Healthcare nukes that plan. If you skip buying healthcare then one single event can bankrupt you.
They fucked our healthcare system, so my philosophy is if something bad happens you just don’t pay them if they perform the procedure, and if they don’t you just kill yourself. 300k in healthcare bills, send them $10 a month until you pass away. (If you are paying anything, they legally can’t send them to collections)
Average S&P return is 10%, but average US inflation is 7.8%, which gives you a yearly return in today’s dollars of $22,400. If you did your plan and bought a house for $250k, (well below the US median house price, but I’ll take your word for it that it’s plausible) you’d expect to indefinitely get $16,800 a year. If you add on the average US rent ($1,700) which you wouldn’t be paying with an outright-owned house, you get an equivalent yearly income of $37,700. In 2023 this would’ve put you in between the 4th and 5th deciles, so slightly below median.
So, if you think the middle class is squeezed in the USA, then you should also think that someone with a million dollars would be squeezed if they quit their job and retired intending to live of it.
Where are you finding inflation over 10 years at 7.8%? It’s likely closer to 3.5%
Christ I think I copied the wrong figure and it should actually be 2.9%.
I’m on mobile ATM so can’t conveniently check but that likely changes the income decile considerably.