What Is “Wealthy”?

Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes

I found this UBS article while doing some research last night. Some folks on BP may benefit from it:

After reading this and several related articles the consensus seems to be around $5M to be considered wealthy with "normal" investment rates. Folks on BP can generally earn a higher yield than the overall population though so I would argue that closer to $2M - $3M would be the litmus test for many posters here.

Any thoughts on this?

1 Reply

76 views

Most Popular Reply

Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

11y

Wealth to me is measured in time. Amount of time you can survive without a paycheck. Most folks are a 'week' wealthy. Some a month. 6 months? Getting tougher, right? How long before folks started defaulting on stuff once they were laid off in the recession? Even the 'rich'. Take away their JOB and nothing to show for it or withstand a storm.

$5MM or $10MM in the hands of an idiot does not mean wealthy. It may mean rich for a little while, but not wealthy. Like a lot of folks on here, I don't have nearly that yet haven't had a w-2 job in 13 years nor will I ever have to get one again. So what, right? By never having to answer to the man again, is one wealthy? I'll go with yes.

14 Reply

See this reply in the discussion

42 Replies

Jump to latestLatest

Sort by

Ericka Parrott
Residential Real Estate Agent · Atlanta, GA · Member since 2009 · 381 posts · 134 votes
11y
Originally posted by @James Park:

What Wealth means to me means to be rich in these 4 areas, not just in financial terms.
1. Spiritual 2. Emotional 3. Physical Health 4. Financial.
I agree with James, wealth is abundance in all areas of your life. If you have terrible health and lots of money that's not wealth. And if you have great health, millions in net worth, but no friends and no loving relationships in your life that's not wealth either. Wealthy people are abundant in all areas.
0 Reply
James Park
Real Estate Broker · Johns Creek, GA · Member since 2009 · 870 posts · 664 votes
11y
0 Reply
Ryan Billingsley
Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
11y
Wealth is a relative topic. To me, to be wealthy is to have financial freedom and the ability to spend my time how I choose. After all, TIME is the most precious commodity. We can buy more watches but we can not buy more time!
1 Reply
Jordan Decuir
Rental Property Investor · Katy, TX · Member since 2013 · 417 posts · 171 votes
11y
Interesting notion to think about... I don't put a specific number on "wealth". For me, it is a bit of a subjective thing. It all boils down to this: True wealth is achieved when one has the financial means to stop going to work for a paycheck and can still maintain his/her desired lifestyle. For some this could mean as little as $5,000 passive income on a monthly basis and probably more than $100,000 per month for others who truly desire a exotic cars, multiple homes, and lavish vacations.
Just my two cents
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Jordan Decuir i kind of like the latter !
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
0 Reply
Ross Ellington
Investor · New Braunfels, TX · Member since 2015 · 139 posts · 26 votes
11y
A good man said we don't give wealth a number, instead it's the point when you arrive where you are free to live the life and be the person you've imagined for yourself. All lifestyles are different and thus funding must be different. For me wealth would be 8 or 9 thousand a month enabling me to do all that I want. For you or someone else it might be much higher and that's ok. But remember the value is not in the obtaining but in the becoming. Have a wonderful night.
2 Reply
Mary B.
Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
11y
There's a wealth of knowledge which is priceless and then there's financial wealth. My take on financial wealth for example to own paintings, art work and other items that will appreciate rather than depreciate at time of purchase that is worth millions in cash. Its definitely the upgrade of being financially rich. My coin.
Kudos,
Mary
0 Reply
Bob Baldwin
Investor · Shelbyville, KY · Member since 2011 · 93 posts · 20 votes
11y
Net worth and Wealth are in the eyes of the beholder !! Once my assets reached $5 million Both the wife and I decided to take a 30 day trip to europe London , Rome , Paris etc; enjoyed the sights but really no desire to return . The one place I have not visited but find it intriguing is Australia would like to spend 30 days there with different stops thru-out
The kids 1 boy 1 girl never lacked for anything ,Yet they never really wanted much . They both got married within 2 years of each other . I offered to buy each a house and they both said NO . funny though when growing up they always had their brother / sister conflicts but now they live next to each other . They are both in almost identical houses .I offered assistance to both but they wanted to have a mortgage to Appreciate what they had .so in essence I bought both houses for Cash and sold them each for a Mortgage of 85 K $$$
Fast forward 15 years they have paid off each of their houses , I have done a few deals with them so that they each have 2 kids and their colleges are paid for and IRA's established . Neither wants to leave their jobs as they both enjoy what they do .
The wife and I still live in the house I built 2 years after we got married .
As far as Splurging $$$ I bought a house on a lake in Northern Maine and a House on a Canal lot in Port Charlotte Fla. Sold 2 of my investments to do so . Also bought a used 35 ft fishing boat paid 90 K but it would have been 400 K new why buy new ?
I will confess that I have always been an admirer of Ferrari's my best man bought one about 9 years ago . He passed away about 2 years ago . His wife called my wife to see IF I were interested in it ? Knowing that I was ! I let the wife give it to me for my 65th Birthday .
Not sure how many generations the wealth will flow down to at this point can only hope the generations will keep passing it forward .
NO ROLEXS for us the TIMEX just keeps a ticking LOL As others have said If you have your love of family , Your Health , Appreciate what you do have , Contribute to those who have Real Needs . Then on your death bed you can say " I Died A Wealthy Man BUT I just can't put a Dollar Value to It "
2 Reply
Joe Bertolino
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
11y
It's a different number for everyone. I am a fairly simple guy. I like nice things and great food but I am not drawn to the big money wasters (ex wives, boats, planes and vacation houses that don't produce income). I like having friends with those toys but no desire to have them. With no personal debt (20 months away knock on wood) I could be very happy with $3M. For other people it could be much less or much more. If you have your family, health and no financial stress... You are wealthy in my book.
1 Reply
Troy Fisher
Specialist · Kirkland, WA · Member since 2013 · 1k+ posts · 817 votes
11y
Accordining to Investopedia(
http://www.investopedia.com/financial-edge/1212/av...)
400k/yr makes you a 1%'er! That's a good indication of wealth. Wealthy enough that everyone is being trained to hate you.
0 Reply
Bryan L.
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
11y
I am a Wealthy man. I don't have a large net worth or a huge income, but I have enough to cover my needs and to live the life that I want, and I make it without a lot of stress. I am Wealthy with great friends and family, great health, a strong faith, and the freedom to work less than the average American. And I also get to work (for the most part) flexible hours and from flexible locations. Just this past week I was able to hike and fish on Thursday afternoon while most Americans were in a cubicle and then fished most of the day Friday.
1 Reply
Jarrett Harris
Calumet City, IL · Member since 2014 · 312 posts · 49 votes
11y
Originally posted by @Bob Baldwin:

Net worth and Wealth are in the eyes of the beholder !! Once my assets reached $5 million Both the wife and I decided to take a 30 day trip to europe London , Rome , Paris etc; enjoyed the sights but really no desire to return . The one place I have not visited but find it intriguing is Australia would like to spend 30 days there with different stops thru-out
The kids 1 boy 1 girl never lacked for anything ,Yet they never really wanted much . They both got married within 2 years of each other . I offered to buy each a house and they both said NO . funny though when growing up they always had their brother / sister conflicts but now they live next to each other . They are both in almost identical houses .I offered assistance to both but they wanted to have a mortgage to Appreciate what they had .so in essence I bought both houses for Cash and sold them each for a Mortgage of 85 K $$$
Fast forward 15 years they have paid off each of their houses , I have done a few deals with them so that they each have 2 kids and their colleges are paid for and IRA's established . Neither wants to leave their jobs as they both enjoy what they do .
The wife and I still live in the house I built 2 years after we got married .
As far as Splurging $$$ I bought a house on a lake in Northern Maine and a House on a Canal lot in Port Charlotte Fla. Sold 2 of my investments to do so . Also bought a used 35 ft fishing boat paid 90 K but it would have been 400 K new why buy new ?
I will confess that I have always been an admirer of Ferrari's my best man bought one about 9 years ago . He passed away about 2 years ago . His wife called my wife to see IF I were interested in it ? Knowing that I was ! I let the wife give it to me for my 65th Birthday .
Not sure how many generations the wealth will flow down to at this point can only hope the generations will keep passing it forward .
NO ROLEXS for us the TIMEX just keeps a ticking LOL As others have said If you have your love of family , Your Health , Appreciate what you do have , Contribute to those who have Real Needs . Then on your death bed you can say " I Died A Wealthy Man BUT I just can't put a Dollar Value to It "
Thanks for sharing. I enjoyed your post.
0 Reply
Dave Fontana
Rental Property Investor · Western Carolina · Member since 2010 · 144 posts · 66 votes
11y
When I was investigating wealth and how to be wealthy. I read something regarding, how many years can you live on what you have. So if you spend 10K per year and you have 100K, you wealth would last you 10 years. This is a crude example. I know there are other things to factor in.But its a basic formula. Different people need different things.
This is why I went into rentals. I have reoccurring income month in and month out. If your expenses are 10K net per year but you collect 20K net per year from your rentals, I think I would consider that wealth.
1 Reply
Dominique Grayson
Investor · Leauge City, TX · Member since 2015 · 44 posts · 11 votes
11y
What makes you wealthy? According to Napolean Hill and his book The Master Key to Riches, Their are 12 great riches in life. Financial security is the last on the list.
1. A Positive Mental Attitude (PMA)
2. Sound physical health
3. Harmony in human relationships
4. Freedom from fear
5. The hope of achievement
6. The capacity for faith
7. A willingness to share one's blessings
8. A labour of love
9. An open mind on all subjects
10. Self-discipline
11. The capacity to understand people
12. Economic security
1 Reply
Arlan Potter
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
11y
@Bryan Hancock
I think my post may have been silly, but I do think it was constructive.
For me, I am in the real estate business because I like it. It pays well and I am building wealth. But it is not the end of me. It is my current business life. I don't keep a wealth score with the rest of this community. And I still point out to the wealth score keepers and the ones above that think there is a magical place to be where their wealth is enough, that it is not a place that they should be focused on. The may get to a good point in life but focus more on the fact that today is their focus.
In the last 2 months, I have had two men that I knew pretty well that died.
Roger... 49 yrs old driving his company truck down the 2 lane highway when a 16 yr old kid on a dirt road did not stop for the highway and t-boned Roger. Out of nowhere boom, he is dead.
Bruce... 55 yrs old, just got his kids out of the house, Good job, good wife, out of nowhere had a massive stroke, never woke up and died 5 days later.
.......
When I was 28, in 1988, my wife was 26 and we had a 3 year old daughter, good job, new home, new cars, life was amazing, and bam, my wife was diagnosed with breast cancer. She died 22 months later on September 18, 1990.
.......
Enjoy your life as it is, build wealth, enjoy your family, but don't be consumed with the future. Enjoy what you have now. "The Lord giveth, and the Lord taketh away, Blessed be the name of the Lord" from the book of Job.
To my friends on this site, sorry for another silly post. Now get out there and buy some cheap houses.
0 Reply
Don Harris
Realtor · Charlotte, NC · Member since 2014 · 935 posts · 467 votes
11y
@Joel Owens
Sounds like your dad was the kind of wealthy man that I would aspire to be.
If you have your health, you have your wealth.
I dont measure my wealth in as much as "what I have" as compared to "what has me". Peace, Financial Freedom, Generosity, Family, Faith..
2 Reply
Amit M.
Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
11y
man, everyone is so serious about this topic.
To me wealth is being able to upgrade to a super burrito from a regular. Whenever I want to :)
2 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.