The Death of Millionaire Status: How Much You Really Need to be Rich 

Just last week I calculated my net worth and for the first time I hit it. $1,002,615. I feel like the last kid on the block to get to that milestone and I was so proud for a moment only to be told "Ah, it's no big deal." 😂😂😂

I once heard that the difference between being rich and being wealthy is that you can easily spot a rich person, but it's tough to spot a wealthy person.

I have been watching the money guy show for about 4 months now. Changed my life completely. And jts been nice seeing my bank account grow. Very addicting. I am the youngest of 5 kids. And I have been telling all of my brothers to invest and save and they keep saying they need the money now. All of them had pennies to their name. And last night I FINALLY convinced one of my brothers to check you out and buy their retirement now.

My retirement goal is $2.5 million by 60. I'm 28 now and have been investing almost 30% of my income since 25. As long as I keep doing what I'm doing, I should be on target no sweat

The divorce statistic is for real. Lost most everything at 49. I am 60 and have regained most but am now way behind - I could have retired a few years ago. My advice to anyone getting a divorce is to go to mediation, avoid the courts and be reasonable - nobody wins but it doesn’t need to be a complete loss either.

I'm 67, today's dollar is worth less than 25 cents of my first after college paycheck! You two are fun to watch. High energy, accurate and interesting content.

By the time I retire in 30 years I'll need 4 million to match that million in 1996 😂

Thank you for always including calculations for those in their 40s!!! It’s the place where I fall and is invaluable to us 40somes! Lack of financial education and life circumstances prevented me from beginning earlier, but I faithfully watch and thankfully have the means to change the trajectory and play catch up now.

I do not consider myself rich as long as I work for money. One day if money starts working for me then I will feel rich.

Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.

Good to see you guys address the elephant in the room, inflation over time. Feel like this channel does a really good job of preaching the basics but often overlooks inflation when projecting asset accumulation over time. It likely has given some folks a false sense of security who don’t have a high level of financial acumen.

Literally was thinking about how much I need for $80,000 equivalent buying power by retirement just a few days ago and then this gem comes out. Y’all are Amazing

Great video guys. When I was working the bars in college, I was preaching Lifestyle creep. Now as a40 y/o parent who started my journey in 2008. $2.2M is WAAAAAAAY more than we need. Not a bad target though. 😂😂

70-75k household income is very tight in mid life, but will provide a pretty great retirement income. 1 mil, combined with SS benefits for a married couple, will provide about $80000 annually. Yes, 1 mil is still a lot of money- and its surprising how little inflation matters to old people who already have the basics covered and paid for. Thanks for the show!

You need 5 mil net worth to feel comfortable, meaning you need not worry about running out of money. But now you worry about your big asset being lost to scams, bad investments and bankruptcy.

I like the show but man $800/ month at 20 is probably disheartening! In agree with the comment "just save anything in your 20s"

At 25, I calculated that if I put $500/mo into a mutual fund, I would end up with $2.65 million by the time I retire. That was the plan 35 years ago. That should get me to a place and if SS was not there, I should be fine. Well, it has worked out because I started early. As for the percentage put into 401K, I put in the max my co allowed which was 16% and my company added 3% so for the better part of 20 years, I was adding 19% per year and by the time I hit 46, i calculated that I willnot need to add any more to hit my goal. So far that is doing ok.

Ive said it once, ill say it again, one million dollars is better than not a million dollars

This is a great episode. I kept my lifestyle simple and toward the end of my working career I was able to save almost 50% of my earnings and retired at 55. You are correct that saving some early (if you can max outa Roth and get all of the employer match on your 401k) it’s amazing how much compounding happens in your 40s and early 50s. My midlife ‘crisis’ purchase was a sports car, which was a fun weekend toy. But when it was totaled out in a flash flood and it only depreciated $10k in six years, I took that insurance money and invested it - it was out of my system by then 😂

Saving 20-25% is tough when it’s some of it is Roth Based. I do 403b 7% to get company’s match and 11% 403b Roth. It’s definitely “easier” to do it pre-tax then post tax. My pre-tax portion is well on its way and been shifting it more to post-tax as I’ve started closing in on 50 years old.

I mean social security running out and social security not existing are two different things. One means maybe you collect $3,000 a month while the other means maybe you collect $2,000. It will be there in some form as a nice addition to someone who has a well funded retirement. Now entirely relying on it would be rough.

“Temporary problems becoming permanent consequences”. Good one Bo.

You are so right, it all starts with a plan. Then you realize your plan really isn’t going to do it, so you make more money to do more, then you realize having a million dollars is worthless, you’re broke. One law suit, one accident denied by insurance, lose your home to “an act of God” and you are toast. We jumped in on Wealthability this year, it was eye opening! We are 36 and spent the past 5 years becoming debt free, saving up, and opening a couple businesses. Before all this we made about $185k now after 3 years in business we are paying taxes on $518k for 2023. For reference we made $32k in 2020 our 1st year in business. This has made us realize that we aimed way too low the 1st 12 years of our working life. Now our goal is a net worth of $29M in the next 16 years and that is probably not enough. Think big and make the changes in yourself to accomplish more than what you think is possible. Along the way you will find out your old goals doable and you are capable of more. Go out there and make it so!

Honestly... with a million, I would consider myself rich. Hell, with a house paid off and a car paid off I would consider myself rich

Some goods get more expensive, some goods get cheaper, like decent tech. Plus, mortgage debt gets cheaper over time and you eventually pay it off. Your "personal" inflation rate fluctuates over time.

$1,000,000 is more net worth than most Americans will ever see.

That chart about pensions just proves that “everyone had a pension” is a myth.

I hit the 7 Figure when i was 39. My midlife crisis started 2 years ago, i now buy myself luxury handbags that i love- Hermes, Chanel, Dior, Louis Vuitton. I waited until i am financially in the position to do this before rewarding myself with all the good things in life. I also bought myself a mercedes 😊. I have a small RU-vid chanel talking about luxury handbags and finance. I hope one day i can come to see you both, collaborate and give an interview. I have been following you for sometime now and i love your content. Find balance in everything you do in life i think is also key. Now, that is the dream to be on your show!

The definition of rich changes as you move up the ladder. A million dollars seems like a big deal to most people, but it won't be once you get there. Then you need two million, then you need four million, then you ten. This is because your lifestyle, outlook and expectations will change. Our human nature dictates that it is never enough.

Hey guys…ok so the average SSA payment is $1700/month so I cannot understand where are you getting $40k a year in social security income? For a 2 person household maybe, but certainly not individual income on SSA! that’s not accurate at all unless the individual is a very high earner who has worked 35 years. Also note most retirees take it early at 62 so their amount is 30% less than full retirement age. Most people at FRA will not even come close to 40K in SSA income, c’mon. Good advice but not totally accurate

I have been investing aggressively since I was 22. I am now 29 and proud to say that my net worth is just above $2mil. Keep working people! Just stay focused and you will get there! It was a long and tough journey for me but I am wiser and happy I did it!

I have 4 healthy children, a loving wife, and I'm able to put food on the table and a roof over our heads. All those factors make me feel extremely rich. $2.2M in retirement would just be icing on the cake 😀

Came for the karate chops, was not disappointed. Thank you for the abundance of information!

Best part came at the end of the video. Work toward your own personal wealth number, not one based on a random investment bank poll that has nothing to do with your personal situation. I don’t think the calculations in this video accounted for the impact of taxes on median household income either. $130,000 of investment income from long-term capital gains would be equivalent to $162,000 of earned income from a job, roughly. Over 200% of the median household income.

This was amazingly helpful and informative, super appreciate it ❤

128k is double what my husband and I would need in retirement in the mid west.

Really appreciate the content and attitude. Thanks Money Guy!

Hey Guys, could you explain how you calculated or found the average social security amount is $40,656 a year? From the SSA website which was last updated with February’s numbers that average monthly payment is $1,781 or $21,372 annually. Are you assuming that this is a couple that both are receiving SS?

A house in Los Angeles cost $30k in 1968. The same house today goes for $1.3 million. And it is a fixer upper!! You could have bought about 33 of those houses for $1 million in 1968. A million isn't what it used to be. Yes, I grew up in that $30k house.

Man… those numbers with inflation are brutal

How long before Social Security eligibility rules are modified to exclude higher-net worth individuals, people with a healthy amount of retirement savings and/or folks with pensions?

Are these the amounts needed based on household income? Or by each individual as part of a couple-based household?

Its really a shame how much inflation has eaten away at our money... In 1990, when I was 19 years old, I rented a 3 bedroom apartment with 2 room mates for $ 240 per month. I was making my rent payment with one day salary. Good news here is Geo Arbitrage ... One million is more than enough to retire in Costa Rica or the Philippines...

Following your financial order of operations principles, I recently surpassed $1 million in investments at age 36! My wife and I currently have over $400,000 in Roth IRA savings. We started investing at 18 years old and have been very diligent at putting our army of dollars to work. I love your advice and look forward to getting to $2 million by retirement.

If you are debt free/house paid off - living on 132k a year is crazy. You need to spend 11k a month on food, clothing and travel - maybe healthcare takes up 2-3K a month

I’m in my late 20s, can we please start getting lump sum calculations for at least the 30s? I’ve been a diligent saver and investor for the past 10 years, so I’m not starting at $0, monthly numbers aren’t super helpful. I’d love a better metric to see where I am along the path!

Yes, 1 Million is enough. Dont be ridiculous. 300k house and 700k in investments is more than enough to live off of. Retirement is 50% nest egg and 50% lifestyle/sending.

These numbers all assume that you don’t have any savings at 30,40,50, etc. what if I’m 50 and have $300,000, how much do I need to save, for example? Just curious how you figure that out. The inflation number and savings number would be different. Oh, I asked the question too early!

Currently 400k at mid 50s. Time to start looking for a camper to live during retirement lol

$130k/yr without a mortgage is a nice lifestyle.

My husband and I passed $1M net worth a few months ago at the age of 37 and 38. We included everything in our calculation. That is not rich in California.

Gotta be honest when I think of what inflation will do to my returns it's really demotivating, I obviously will keep doing it since it's better than a savings account but it hurts to know that most of the money I see in return calculators and estimates at my current savings are pretty much meaningless as the real number will be much lower when you account for inflation. Thinking that if I was able to get to $50m in investments in my life time it is really only worth $12m is really sad (48 years of compounding growth is the number I used (Im almost 22) and will probably retire at 70 (long story lol) its not a money thing)

I spent way too much on stupid stuff over the last 30 years but I did company match and saved some. Downsizing has been the best thing for me. I should have done it many years ago.

The punchline: to know your number you have to account for inflation.

I think 2-3M is the new Millionaire status

It would be really nice to see what amounts we’d need to contribute to get there at age 60, 55, and 50 as well! I think most of this audience wants to retire early

I don’t want to be rich. I want enough to maintain my current lifestyle.

Due to inflation, previously what we've thought a millionaire is nearly 2-3 million nowadays... I think

Social Security CANNOT run out of money. The trust fund may get depleted but that is a much different thing

Of course it's enough. Most people will NEVER have $1m , but still manage to retire. Funny that , isn't it ?

"Shaq is rich. The man who signs Shaq's paycheck is wealthy. You can't get rid of wealth. Rich is something you can lose in one summer with a crazy drug habit." -Chris Rock

People are too attached to the cities. Move to Possum Grape Arkansas and you can retire on $17.37.

A million NW is not a huge milestone any more, and it makes sense. Even at a low rate of overall inflation, the value erodes over time. BTW, The Millionaire Next Door is an excellent book, even today.

thanks for telling us what 2.2 looks like in the future. helps give us youngsters a goal to shoot for.

Is this 2.2 net worth?

When a person has $100,000 or less, they are really bucking cost-of-living expenses out of that money. As their portfolio increases, the cost of living gets smaller and smaller in comparison. After a while, the cost of living is insignificant compared to the compound interest of the investment. So yes 1 million is nothing to sneeze at. Unfortunately 1 million will not set you free, it's got to be enough to out pace, inflation, and your wildest dreams.

Great content, Brian and Bo. This channel has helped me a lot; wish I found you years earlier. I refer you to everyone I know.

$3M is the new $1M

In my 20 years of working, ice never recieved more tgan 3-4% of employer matchibg for my 401K. Does that even exist anymore?

The social security public trust (surplus from when more people were working than retired) will most likely run out but the program itself is funded by current workers. What this means in light of shrinking population (more retired people than working people) is that your benefits will most likely be less, but not zero.

I love this show, thank you for this!

Your calculations are wrong (at 9:56 you say you assume a starting return at 10% that decrease by 0.1% per year, but the calculations shown are the required monthly savings if it stayed at 10% for the entire period).

This is great info .... inflation, unplanned financial emergencies eat up into your saving plan(s).

Having a net worth of over a million dollars is not the same as having a million dollars in accessible funds. Lots of net worth is tied up in real estate and 401ks/retirement accounts. That is much different than a million in a brokerage account or in Cash reserves like many “millionaires” have.

Will this be based on net worth or liquid net worth? Sometimes it’s confusing when you guys talk about millionaire when it includes assets like home and car etc cause is that really a millionaire -having a bigger percentage of your net worth tied to your house and car?

Good lord 1 million will get you 50k a year. Add social security of 30k a year and life should be fine at 80k per year for most americans not living in expensive cities and states. You DO NOT need the same purchasing power when you retire because your home is paid for, you need less clothing, car usage actually drops, etc…. Your life changes….

With the math aspect, it seems for the 20 YO (45 years from the specified retirement age) = (2.2*10^6)*(1+.03)^45=M*((1+.10/12)^(12*45)-1)/(.10/12); solving for M, = $794 (rounded up to the nearest whole dollar).

You guys are so right. My husband and I moved to AZ fr CA in preparation for retirement because we knew we would be financially better off here. It was a great decision! We are in the $2.5M level besides funds from several pensions and investments, so we are comfortable and secure. But with this much money, we have to be mindful of our spending. We don't indulge in ultra-luxurious stuff and we stay grounded. If we had $10M, then I would consider us really rich. However, there's such a thing as happiness and contentment---that is what we have.

I appreciate the numbers, but when you didn’t have the resources or knowledge to invest early, this makes some of us older people feel really bad! 😢

Aloha! Great advice! “🤙🏽”

I started pretty late investing,in my mid 40's...I invest 30 k a month in mutual funds.

Just my opinion: if you have SS and $1 mill and your debts and house are paid off then you could generate at least 10%/ year from that $1 mill. If you get dividends and you can do even OTM covered calls, you can get close or more than that and that is investing very safely. Also, if you have rental property that has cash flow, you should be fine. Move to a state like TN with no state income tax too. I know you hate options but OTM covered calls are very safe - as long as it is still in a tax-deferred or tax free account. If it’s in a brokerage account, there could be short or long term gain consequences but still.

9:40 It seems really difficult to maintain that savings rate in your early 20s

The first 40% of the years you plan to invest will make the biggest difference overall on how much you will end up with. Focus on maximizing investments today if your in the position to, so that tomorrow when you have more obligations it will be OK for you to slow down on investments for other expenses..

Invest early. No way I'm going to be working until 65. Thank goodness for early investing and a company pension (which the company stopped for new employees a couple years ago.

They keep saying "saving per month" but then they are talking about investing. Im confused. Am i saving $1,320 a month and putting it into a savings account or am i saving $1,320 a month and investing it in something long term like mutual funds so it will grow into $2.2m with the annual average market growth?

I'm in my mid-40s and don't have anywhere near enough to ever retire, even with the pension I'll be receiving from my job.

Bummed that there isn't any MoneyGuy merch.

I retired at a very early age Live normal don’t let them know . I get 30,000 a month live a normal life but I do travel once a year .

A million dollars then or now is still more than most people have saved. Why are you downplaying it?

Wow! I just made it before the train left the station.

These numbers-where is the money in the 401k, the Ira, hsa or in stocks?

🚨 Purchasing power gets cut in HALF roughly every 18-20 years, historically due to inflation.

Is there a limit on how much you can make and still draw social security at full retirement age? Seems like I've heard y'all say something about 200k cutting off the social safety net, just want clarification

The worker has to save for retirement. That *sounds* reasonable. The problem is that most workers do not work as professional investment brokers.

Now that I have recently hit the million dollar net worth mark, I feel that it is not enough. I now need 2 million. However, I live with n a low cost of living area with a pension so 1 million is a lot of money here.

Our retirement accounts hit 1.5M but where we live, we’re barely middle income here. It’s all relative.

“71% say social security won’t even be around at all when you retire”…5 minutes later…. “If we add $40k from social security then this is living large”

I am a big financial mutant but there's no way as someone in their 20's will be able to get $7,000,000. That seems astronomically high.

they are not going to let SS run out. While I am not banking on it for retirement, I will love the benefit when I retire when it come time.