The True Or False: Being Rich In America Can Really Depend On Where You Live?

We know that the older you are, the higher you set the bar for what it takes to be considered wealthy. But an even bigger influence on that number can be where you live. Being wealthy in Denver doesn’t mean nearly the same thing as being wealthy in San Francisco, or in New York City for that matter. People living in the San Francisco Bay Area—or trying to, anyway—have the loftiest definition of what net worth you need to be rich in their city: an average of $4 million, according to Charles Schwab’s Modern Wealth Survey. And if you narrow that down just to the baby boomers surveyed (roughly age 55 to 73), the average jumps to $5.1 million.

 

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Wrong. They can try with this:  "Being rich in America rally depend on what you do."

  • Upvote 2

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3 minutes ago, ThunderBlade said:

We know that the older you are, the higher you set the bar for what it takes to be considered wealthy. But an even bigger influence on that number can be where you live. Being wealthy in Denver doesn’t mean nearly the same thing as being wealthy in San Francisco, or in New York City for that matter. People living in the San Francisco Bay Area—or trying to, anyway—have the loftiest definition of what net worth you need to be rich in their city: an average of $4 million, according to Charles Schwab’s Modern Wealth Survey. And if you narrow that down just to the baby boomers surveyed (roughly age 55 to 73), the average jumps to $5.1 million.

 

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"If you make at least $52,498 in Detroit, you're considered rich"

https://www.freep.com/story/news/local/michigan/detroit/2018/05/18/detroit-median-household-income/622687002/

 

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Just now, Rodent said:

 

"If you make at least $52,498 in Detroit, you're considered rich"

https://www.freep.com/story/news/local/michigan/detroit/2018/05/18/detroit-median-household-income/622687002/

 

And this, to be rich in: "Other notable cities:

  • Milwaukee: At least $73,602
  • Philadelphia: At least $79,540
  • Indianapolis: At least $86,202
  • Chicago: At least $100,868
  • Las Vegas: At least $101,764
  • New York City: At least $110,382
  • Boston: At least $117,032
  • Washington, D.C.: At least $145,870
  • Seattle: At least $148,916
I guess opinions vary

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2 minutes ago, Pavel said:

Wrong. They can try with this:  "Being rich in America rally depend on what you do."

and how you do it.

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6 minutes ago, Rodent said:

and how you do it.

I'm still trying to find answer... :)

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Being rich is not about how much you have. It's about how much you give.

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Over 10.4 million people in the U.S. are millionaires....

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2 hours ago, Rodent said:

And this, to be rich in: "Other notable cities:

  • Milwaukee: At least $73,602
  • Philadelphia: At least $79,540
  • Indianapolis: At least $86,202
  • Chicago: At least $100,868
  • Las Vegas: At least $101,764
  • New York City: At least $110,382
  • Boston: At least $117,032
  • Washington, D.C.: At least $145,870
  • Seattle: At least $148,916
I guess opinions vary

I'm sure a curve can be created that shows median housing in those same cities follows those numbers closely. My son bought a one bedroom 500 sq foot condo in Seattle for $200k 5 years ago and it's "worth" $600k today. He left Seattle but rents it out for the "bargain" of $2800/month. What income do you need to support that kind of rent? Old statistics said 1/3 of your salary for shelter. Remember, this is a "starter" apartment. 

 

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(edited)

Another problem? When you ask if someone is "rich", are you talking about net worth or income? Lots of farmers are "land rich, dirt poor". Definitely multi-millionare on paper but might only clear $35,000 a year after all the expenses are factored in. Not much income, but more than enough credit to buy $400k combines and build 30,000 sq ft "shops" to keep them in. 

There was an excellent article in the WSJ some years back. They compared a guy who had sold his business for about $3million cash to his sister, a retired school teacher. After it was all said and done, the guy wanted to trade places with his sister. She was the one with the golden pension that she never had to lift a finger to manage, while he had to scramble to invest his nest egg wisely to even come close to what she was guaranteed. Rich is as rich does. 

Edited by Ward Smith

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3 hours ago, Ward Smith said:

Another problem? When you ask if someone is "rich", are you talking about net worth or income? Lots of farmers are "land rich, dirt poor". Definitely multi-millionare on paper but might only clear $35,000 a year after all the expenses are factored in. Not much income, but more than enough credit to buy $400k combines and build 30,000 sq ft "shops" to keep them in. 

There was an excellent article in the WSJ some years back. They compared a guy who had sold his business for about $3million cash to his sister, a retired school teacher. After it was all said and done, the guy wanted to trade places with his sister. She was the one with the golden pension that she never had to lift a finger to manage, while he had to scramble to invest his nest egg wisely to even come close to what she was guaranteed. Rich is as rich does. 

What school teacher pension is worth $3m, and where do I apply..

 

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48 minutes ago, J.mo said:

What school teacher pension is worth $3m, and where do I apply..

First, there are many Falsehoods and misconceptions about defined benefit teacher plans. 

That said, current retirees are CURRENTLY averaging $80k in my state, and some make considerably more than that. Next, look into the annual payout for lottery winners, when the "prize" is $3million. You'll quickly find convergence, and realize, the lottery stops paying you after 20 years, while a teacher stops collecting when they die, maybe. IIRC the woman in the article was about 50 and had worked almost 30 years, and due to collective bargaining was collecting the max for her pay scale from her last year, which just like always happens in public sector employment, was her best year ever. I believe her retirement pay was over $90k plus her health insurance was included. So yeah, effectively she won the lottery. 

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On 5/15/2019 at 7:47 AM, Pavel said:

I'm still trying to find answer... :)

Two books, both available free: "Millionaire Next Door" and Ray Dalio's "Principles".

Read them, follow the guidelines and be patient. Good luck my friend, but realize being a millionaire doesn't suddenly make your life better, just more secure, unless you worry like my wife does. ;)

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