Do people under estimate money needed to be wealthy/Upper Class? I say $10 million is needed atleast

[BigCityDreamer]

I pretty much go with the standard definition of rich or upper class in socioeconomic studies: the top 1% of income earners. That includes households making at least $350,000. Sounds about right for upper class to me, and it's the most useful definition.

The upper-middle class is the next 15%.

[checkmatechamp13]

Originally Posted by BigCityDreamer

I pretty much go with the standard definition of rich or upper class in socioeconomic studies: the top 1% of income earners. That includes households making at least $350,000. Sounds about right for upper class to me, and it's the most useful definition.

The upper-middle class is the next 15%.

It makes sense, but I'd just like to throw this in there: It is possible somebody could have a low income, but have a lot of money saved up, and it is possible that somebody could have a low income and somebody else is paying for most of their expenses, so it doesn't matter.

For instance, you could have a widow who inherited $10,000,000. Say she puts it in a bank account and it makes 1% a year. That would mean her income is $100,000 (which is still a lot, but isn't considered super-rich). On paper, she wouldn't be considered wealthy, but when you consider the fact that her expenses are probably fairly low, and the fact that she has the capital to live off as well, she could live a wealthy lifestyle if she so chose.

And you could have a college student working part-time, making $10,000 per year, but their parents are paying to put them through school and are paying for their room and board, so it doesn't matter that they only make $10,000 per year.

And of course, you have people who don't report the side income they make because it'll push them over the limit for government programs (or it's because of illicit activities like drug dealing or prostitution)

These things probably don't have too much of an effect on the actual median income (the actual number people earn rather than the amount they put down on the Census Community Surveys), but I'm sure it has some sort of impact.

[saganista]

Originally Posted by Sky1

What are you talkin about? My co-workers make over 100k per year by themselves. Most of my friends have family incomes ove $250k/yr and they like me live a "Normal" and even a somewhat conservative lifestyle.

You live in a bubble. The vast majority of Americans has no chance of ever living the lifestyle that you do. This is a simple fact, whether you are willing to confront it or not.

Originally Posted by Sky1

Upper class now are those in the hundreds of millions to billionaires. Plenty of them...

No, there aren't "plenty" of them at all. Even the top .01% averages a paltry $30 million or so a year.

Originally Posted by Sky1

...as you and I get poorer the rich are getting mega rich.

There was a time when I made what you make now, and if you are getting poorer from it, you are doing it wrong.

Originally Posted by Sky1

Yup we are a sinking ship, and the Federal Reserve is printing money to pay our bills so any dollars you have saved are being devalued at an alarming rate. They say inflation is at 3% but not sure how they are coming up with those numbers. Just look at your grocery bill.

Maybe you should read up on how they come up with those numbers. My grocery bill is represented in there and so is yours and everybody elses. Do you seriously believe that the tiny little almost imperceivable slice of the economy that you are able to observe in your day-to-day life informs you better than what thouands of trained observers and researchers from all over the country come up with in prodigous detail every month?

Originally Posted by Sky1

So, is 10 Million rich? Well, What good is having 10 million when it cost that much for a cup of coffee? The Zimbabwe dollar was at one time worth more then the US dollar. I have a 100 trillion dollar bill I bought off ebay for $3 and that include shipping.

Do you know why Zimbabwe's currency became worthless? It was not because the government printed up a bunch of it to pay some overdue bills. It was because years of corruption, rebellion, civil war, rampaging militias, and resulting emigration destroyed the national economy, causing the GDP of Zimbabwe to collapse. Meanwhile, there were currencies representing nearby economies that did not have such problems to convert into. Everyone did. At the end of the day, all currencies are backed by the real goods and services produced within the economy that issues it. Without any such production behind it, Zimbabwe's currency was doomed. Who wants to hold a coupon that's only good at a store that has no goods on the shelves?

Originally Posted by Sky1

Soon nobody is going to accept us currency, Iran was the first, teamed up with Chavez and trying to get Opec to follow suit.

Nice tin-foil hat. The US produces about 23% of everything that is produced anywhere in the world. Until that GDP number plunges as Zimbabwe's did, there will be high demand for US dollars and they will continue to be sought and accepted everywhere.

Originally Posted by Sky1

Every time I calculate how much I need to retire each year the bar goes higher. At the rate we are going with the money printing we will soon go to hyperinflation so as far as dollars go you will need billions.

LOL. You've been visiting the websites of far too many whackjob internet financial guru wannabes.

Originally Posted by Sky1

Long story short. They key is to not hold dollars but instead a true form of money that was used for thousands of years. Think about it.

I should hold salt instead of dollars? Where could I invest salt so as to earn a competitive market-based rate of return that includes protection from inflation-risk?

Originally Posted by Sky1

(Please click my reputation link if you agree)

Not much chance of that really.