Investors share their thoughts on how much money means "rich", either in terms of income or net worth.
It takes more than numbers to be rich, but numbers play a part in the equation.
So when affluent investors were asked by Spectrem to select the income and accumulated wealth levels for reaching “rich’’ status, the numbers ranged widely.
Looking first at “rich’’, investors were asked “what best describes the minimum annual household income that it takes to be rich?”. The choices they were given ranged from $100,000 to $450,000 or higher, and the overwhelming answer was the last choice, selected by 36 percent of investors.
Sixteen percent were willing to say income of $250,000 qualifies a person as rich. Eight percent went to $300,000, 3 percent said $350,000, and 4 percent said $400,000.
Surprisingly, 14 percent of investors said an annual income of $100,000 qualifies a person to say they are rich.
Of equal surprise is that when segmented by net worth, investors did not have vastly different answers than the average. Among investors with a net worth of $100,000, 17 percent said an income of $100,000 qualifies a person as rich, while 42 percent said the $450,000 level defines the term. Conversely, among investors with a net worth of $5 million, 6 percent said $100,000 was enough, while 39 percent said $450,000 was the mark.
Age did play a role in the responses. Investors over the age of 60 followed the overall average response, but no investors under the age of 40 thought an income of $100,000 could designate a person as rich. Forty-three percent said the $450,000 level was more reasonable, and 14 percent were willing to let an income of $150,000 apply as rich.
Income is one thing, accumulated wealth is another.
Investors were asked “what best describes the minimum wealth level to be rich?” and the answers ran the gamut from less than $1 million (13 percent) to more than $20 million (8 percent). In between, there was $1 million (18 percent), $2 million (16 percent), $3 million (8 percent), $4 million (3 percent), $5 million (14 percent), between $5 million and $10 million (14 percent) and between $10 million and $20 million (5 percent).
While the overall average response balanced between the various wealth ranges, 35 percent of Business Owners said the appropriate wealth level to be designated rich was between $5 million and $10 million.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.