I'm a little leery to post this as it's kind of a reply to a thread that was locked, but I don't think this information would have contributed to the lock and hope it'll be helpful regarding finances and "wealth".

para, if this is overstepping, I apologize in advance and will delete.



https://www.kiplinger.com/pers...tm_source=SmartBrief

A growing share of Americans reach millionaire status yet still worry about money. Here's why wealth feels different today and how to build true financial confidence.

Becoming a millionaire was once considered a clear sign of financial success. Many view it as a milestone that promises comfort, security, even a sense of arrival.
But for many Americans today, crossing the seven-figure net-worth mark doesn’t necessarily translate into feeling wealthy.
A growing body of research shows that many millionaires still worry about retirement, health care costs and whether their money will last. At the same time, Americans’ definition of wealth has shifted upward as inflation, longer life expectancies and rising housing costs reshape financial expectations.

For those navigating similar concerns, the disconnect between net worth and financial confidence raises an important question: What does it actually take to feel financially secure?
Why millionaire status no longer guarantees financial confidence

For decades, accumulating $1 million in assets was considered a gold standard for financial success. Today, that benchmark can feel outdated.
According to recent survey data by Northwestern Mutual, only a minority of U.S. millionaires consider themselves wealthy. Many say they feel "financially comfortable" at best, while others report ongoing anxiety about the future.
Several factors are driving this shift:
Inflation has eroded purchasing power. A million dollars simply doesn’t stretch as far as it once did, especially after years of elevated prices for essentials.
Housing costs have surged. In many regions, a large portion of net worth is tied up in home equity, which doesn’t necessarily provide spendable cash.
Longer lifespans require more savings. Retirees might need to fund 25 to 30 years of living expenses, increasing pressure to preserve assets.
These modern realities mean that reaching millionaire status doesn’t automatically translate into peace of mind.

How Americans define wealth today

Americans’ definition of wealth has shifted sharply upward, and it now goes far beyond simply having $1 million.
According to a Charles Schwab survey, Americans say it takes an average net worth of about $2.3 million to be considered wealthy today. That figure has stayed elevated in recent years and reflects a broader trend: The financial bar for feeling wealthy continues to rise alongside living costs and economic uncertainty.
Survey respondents also said it takes roughly $839,000 in net worth to feel financially comfortable, highlighting a wide gap between comfort and perceived wealth.
Perceptions also vary significantly by generation and personal circumstances:
Older Americans tend to set higher wealth thresholds than younger ones, reflecting concerns about retirement and health care costs.
Many respondents say rising prices, taxes and interest rates have made wealth feel harder to achieve than in the past.
Definitions of wealth increasingly include nonfinancial factors such as health, relationships, life experiences and free time, not just net worth.

Together, these findings suggest that wealth today is as much about stability and quality of life as it is about reaching a specific dollar amount. As expectations rise, even high-net-worth households might feel they're still working toward, rather than living in, true financial security.

Net worth vs financial security: What matters more

One of the biggest reasons millionaires might not feel wealthy is that net worth alone doesn’t equal financial security.
A household could have a $1 million net worth but still feel financially strained if most assets are tied up in illiquid holdings such as:
Retirement accounts that can’t be accessed without penalties
Real estate that generates little cash flow
Business equity that fluctuates with market conditions
On the flip side, people often feel more secure when they have:
Reliable income streams
Adequate emergency savings
Low or manageable debt
Clear retirement projections

Lifestyle inflation and the millionaire mindset

Another reason many millionaires don’t feel wealthy is lifestyle inflation; the tendency for spending to rise alongside income and net worth.
As earnings grow, households might upgrade:
Homes and neighborhoods
Vacations and travel
Private education or extracurriculars
Dining and entertainment
These upgrades can quietly increase fixed expenses and create ongoing financial pressure. Even high earners can feel stretched if their spending commitments grow just as quickly as their assets.
Psychological factors also play a role. Behavioral finance research shows that people often compare themselves with peers with higher incomes or net worth, which can diminish feelings of financial satisfaction even when they're objectively well off.

What helps people feel financially secure

While net worth can be an important milestone, true financial confidence tends to come from stability and flexibility rather than a specific number.
This includes having:
Predictable retirement income: Knowing that Social Security, pensions or investment income will reliably cover core expenses can significantly reduce anxiety.
Strong emergency reserves: Having three to six months of expenses in accessible savings provides a buffer against unexpected setbacks.
Adequate insurance coverage: Health, disability, home and life insurance can protect wealth from being derailed by a major event.
Financial flexibility: The ability to reduce work hours, change careers or handle large expenses without financial strain often contributes more to confidence than reaching a certain net worth.
Clear priorities and goals: People who define what money is meant to support, whether that’s travel, family support or early retirement, often feel more satisfied than those chasing arbitrary wealth targets.

Realistic wealth benchmarks by age

Comparing your finances with national benchmarks can provide a useful perspective, as long as those numbers are viewed as guideposts rather than strict targets. Net worth varies widely by age, income and location.
According to the Federal Reserve’s Survey of Consumer Finances, net worth generally rises with age but differs sharply between median households and top earners.

Using the latest available SCF data:
Under 35: Median net worth is roughly $39,000, though higher-earning households may hold several hundred thousand dollars.
Ages 35 to 44: Median net worth rises to about $135,000, with top households surpassing $1 million.
Ages 45 to 54: Median net worth approaches $247,000, while top earners often exceed $1 million.
Ages 55 to 64: Median net worth climbs to around $364,000 as retirement savings peak.
65 and older: Median net worth often ranges from about $335,000 to $410,000, though top-quartile households hold significantly more
Rather than focusing solely on net worth, financial experts typically recommend tracking retirement readiness using savings and income benchmarks.
This often means contributing consistently to tax-advantaged retirement accounts such as 401(k)s and IRAs and aiming to save the equivalent of your annual salary by age 30, three times by 40, and six to eight times by your early 60s.
To ensure you’re not creating unnecessary pressure that makes financial success feel out of reach, ask yourself some of these questions as you track your progress:

Am I consistently saving and investing each year?
Is my net worth trending upward over time?
Do I have a clear plan for retirement income and major expenses?
Am I reducing high-interest debt and building liquidity?

How to build financial confidence even if you're not a millionaire

The good news is that feeling financially secure doesn’t require reaching a seven-figure net worth. Many households can build confidence through practical steps that improve stability and clarity.
Consider focusing on:
Strengthening emergency savings to reduce financial stress
Increasing retirement contributions when possible
Diversifying income sources through side work or investments
Reviewing insurance and risk management
Creating a long-term financial plan aligned with personal goals
For some households, working with a financial adviser can help clarify priorities and build a roadmap for long-term security.
Millionaire status might still represent a significant financial milestone, but it no longer guarantees peace of mind. Rising costs, longer lifespans and shifting expectations have changed what it means to feel wealthy.

Ultimately, financial security is less about hitting a specific number and more about having stability, flexibility and confidence in your ability to support the life you want. For many Americans (millionaire or not), those factors matter far more than the size of a portfolio.

If you are a "millionaire" and don't feel financially secure, it's because you make poor financial decisions. There are millions of people who feel differently that don't have close to a million dollars of assets. I'm one of them.

So much seems to depend on where you live and the local cost of living (housing, taxes, etc). It used to be that moving south for retirement made retirement income go further; while still true no doubt, in some areas, the flight of the wealthy from the Northeast and the left Coast may be changing that assumption. While I am retired and in my late 70s, I am worried about the ballooning size of our national debt and what the means for taxes and cost of living in the relatively near future.

Well two things come to mind. $1 million isnt what it used to be

Once you retire the costs you don’t anticipate kick in. I’ve been told that living an additional 25 years after retirement will cost the average person $250,000 in medical costs alone. Or about $10k per year.

A lot of states don’t give retirees a break on property taxes. This alone could consume 15% of your social security benefits for the year.

And let’s not talk about food and utilities.

I could have retired 2 years ago but am still working because I need the company health care plan for as long as possible.

This message has been edited. Last edited by: nhtagmember,

quote:

Originally posted by flesheatingvirus:
If you are a "millionaire" and don't feel financially secure, it's because you make poor financial decisions.

A couple bought house for $250,000 25 years ago and payed it off. Now, that house plus a few more assets means they are millionaires. That doesn’t mean they’re financially secure nor does it mean they made poor financial decisions.

Figuratively, being a millionaire doesn’t take much. A house purchased near downtown Dallas 25 years ago and some retirement savings and voila! You’re a millionaire! No poor financial decisions needed, but you are certainly not financially secure with 50-80% of your net worth tied up in your house.

On the other hand, if you have a million in savings on top of that paid off house, then I’d say you are financially secure.

Inflation has changed the numbers dramatically.

It wasn't that long ago that earning a total (pre-tax) $1M for your entire career was quite a good accomplishment. That's $22,222 per year, which is what an engineer averaged in around 1975.

Today, the average annual earnings in the USA is three times that at $66k. Which means the lifetime earnings would be $3M for the average full time employee in the USA.

Having $1M in net worth at retirement is not nearly the achievement it used to be simply due to inflation, and that's why being a "millionaire" today feels different than it did in the past.

Wealth can sprout wings and fly off to the sky, like an eagle.

A man will never feel wealthy, no matter how many millions he has, if his brain convinces him, “My man, that’s not enough”.

quote:

Americans’ definition of wealth has shifted sharply upward, and it now goes far beyond simply having $1 million.
According to a Charles Schwab survey, Americans say it takes an average net worth of about $2.3 million to be considered wealthy today. That figure has stayed elevated in recent years and reflects a broader trend: The financial bar for feeling wealthy continues to rise alongside living costs and economic uncertainty.

Yep. Inflation.

I had Gemini AI start with a million at age 62 and work backwards assuming the entire time 100% invested in S&P 500:
62: $1,000,000
52: $282,000
42: $141,000
32: $51,000
22: $11,500

What it tells me is that:

they haven't had long to feel like a millionaire (i.e. look how fast it grew between ages 52 and 62).

they're a darn good saver (i.e. opposite of irresponsible).

they're likely realizing that it took them 40 years to get there, but now the income is ending and they'll be drawing down savings which they want to last 30 to 35 years.

the Biden era rate of inflation likely makes them nervous.

Seems nobody wants to have a million dollars.

They only want to spend a million dollars.

The habits that got them there will remain long after any benchmark or goal has been met.

quote:

Originally posted by flesheatingvirus:
If you are a "millionaire" and don't feel financially secure, it's because you make poor financial decisions. snip

Since we are talking in absolutes, You're wrong.

For instance, I bought my house 44 years ago. M son just bought a used car that cost more than my house. Now, It's appreciated a fair sum. Realizing that, WA has a capital gains tax that applies to RE. I my case that will apply to about 90percent of my RE value. If I croak I'll be fine. If I become infirm and need a 'home' my house value takes a gigantic hit.

That leaves me sitting here, wondering what the new actual value is.

Stocks, bonds etc. are volitile as all get out. Go to cash and lose the gain one needs to keep up. pick the wrong year to buy, or sell, and you can hit the slippery slope where taking a reasonable living amount sends you into the cold.

As anybody in finance knows you can make good decisions and get bad outcomes and verse-visa[ or you can do nothing. But bad outcomes are not always a matter of poor planning.
An off the cuff example is an article (somewhere, sorry) about folks who have made 'safe investments' in real estate and now face disaster because of rezoning, tax increases or encroachment of bad neighbors, pirates, sewers, low cost housing.

So you pay your nickel and take your chances, invest rashly and take your chances, invest poorly and get the outcome you should expect, but bas outcomes, in this case returns, aren' always the result of decisions the one makes that by all then current measures are good and with the florist of a government pen become bad.

quote:

Originally posted by Fly-Sig:
Inflation has changed the numbers dramatically......

...Having $1M in net worth at retirement is not nearly the achievement it used to be simply due to inflation, and that's why being a "millionaire" today feels different than it did in the past.

So true it's simply that our money has been devalued so much. I recall of back in the mid 1960's a millionaire was a very rich person. Those same 1965 million dollars would need to be $10,000,000 of today's dollars to have similar worth.

As mentioned earlier - a million dollars is still a lot of money if you can control your spending and invest wisely.

I know people that retired in the mid-50's with $2M net worth and are doing just fine.

No debt goes a long way to help one feel a sense of security.
Unfortunately probably only 5% of Americans or less truly have no debt.

Getting there as far as retirement is concerned should be the top goal.

I like Kiplinger, they write some great financial articles.

Millionaire aint what it used to be. Not too hard to have a million in assets and understand how fast that can spend today.

quote:

Originally posted by ridewv:

quote:

Originally posted by Fly-Sig:
Inflation has changed the numbers dramatically......

...Having $1M in net worth at retirement is not nearly the achievement it used to be simply due to inflation, and that's why being a "millionaire" today feels different than it did in the past.

So true it's simply that our money has been devalued so much. I recall of back in the mid 1960's a millionaire was a very rich person.

Well, yes. When you could get a Burger King Whopper for under a buck in the 70s and that sandwich now $8, that same relationship converts $1 million today to having the equivalent of $125,000 in the 70s. Both amounts buy the same 125,000 Whoppers.

Conversely, $1 million in the 70s translates to $8 million today.

So a million today is the same as having $125,000 in the 70s which certainly wasn't millionaire status back then by definition.

quote:

Originally posted by darthfuster:
Millionaire aint what it used to be. Not too hard to have a million in assets and understand how fast that can spend today.

The key is staying ahead of inflation, even in retirement.
That means having your money in several "buckets": (1.) a short term bucket for the next 6 months spending which is liquid and not subject to market fluctuation, (2.) a medium term bucket for the next 3-5 years using laddered bonds or income equivalent (possibly annuities, although there are some good, some not so good with many variables here) which keeps steady with inflation, and (3.) a long term bucket for beyond 5 years using a diversified equity strategy.

I’d feel a lot more secure if our govt did not take and waste so much of our money in taxes. I am more concerned about that in retirement than I am my income.

quote:

Originally posted by chellim1:

quote:

Originally posted by darthfuster:
Millionaire aint what it used to be. Not too hard to have a million in assets and understand how fast that can spend today.

The key is staying ahead of inflation, even in retirement.
That means having your money in several "buckets": (1.) a short term bucket for the next 6 months spending which is liquid and not subject to market fluctuation, (2.) a medium term bucket for the next 3-5 years using laddered bonds or income equivalent (possibly annuities, although there are some good, some not so good with many variables here) which keeps steady with inflation, and (3.) a long term bucket for beyond 5 years using a diversified equity strategy.

Yes we are exercising our plan that preserves our principle and yields income that moves with inflation our homestead is debt free. Plus we have income still. Unless something catastrophic happens outside of our umbrella, we’ll be quite comfortable. I won’t be buying a Gulf stream nor that 47’ Fountain twin engine boat though…