Schwab Modern Wealth Index Survey 2019

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Submitted by phaster on May 15, 2019 - 7:48am

Quote:

Schwab Modern Wealth Index Survey 2019

...an annual examination of how 1,000 Americans think about saving, spending, investing and wealth.

...59 percent of Americans consider themselves to be savers, and 65 percent say they’re willing to sacrifice spending money on experiences now to save money for later in life.

- A majority (59 percent) live paycheck to paycheck

- Nearly half (44 percent) typically carry a credit card balance

- Only 38 percent have built up an emergency fund

...According to the survey, Americans believe it takes an average $2.3 million in personal net worth to be considered “wealthy.” That’s more than 20 times the actual median net worth of U.S. households, according to the Federal Reserve’s Survey of Consumer Finances released in 2017.

...The online survey was conducted by Logica Research from February 8 to February 17, 2019, among a national sample of Americans aged 21 to 75 and an augment sample of 200 older Gen Zers aged 18-22 for generational comparisons. The national sample was balanced to be demographically representative. The margin of error for the national sample is three percentage points.

https://www.aboutschwab.com/modernwealth...

thought the Schwab Modern Wealth Index Survey was interesting BUT given my own circumstances don't consider an average of $2.3 million in personal net worth is “wealthy”

Quote:

70% of Millionaires Don’t Consider Themselves Wealthy

Are all millionaires wealthy? Not if you ask them. A whopping 70% of those with at least $1 million in assets that are invested or available to invest, excluding home values, don’t consider themselves to be wealthy, according to a survey of 4,500 affluent investors by UBS.

https://personalfinancenews.com/70-of-mi...

https://www.ubs.com/microsites/ubs-inves...

thoughts?

Submitted by FlyerInHi on May 15, 2019 - 1:58pm.

The federal reserve said 40% of adults don't have $400 in emergency funds.
And the Trump tariffs will cost them $500/year.

https://www.federalreserve.gov/newsevent...

Submitted by temeculaguy on May 16, 2019 - 12:02am.

You are doing it again, put the China pom poms away brian. BTW, on your Asia travels don't you avoid connecting flights in China like I do because they censor your internet on your phone. Wrong place to hitch your wagon, let this one play itself out.

Submitted by temeculaguy on May 16, 2019 - 12:26am.

phaster, I guess I agree with the article, that 5 mil might be the tipping point where people do not feel constrained but 1 mil, no way. We all have our own strategies but hypothetically if a person wanted 15k monthly in perpetuity plus 3% inflation for retirement they would not feel wealthy without restraints but they might feel comfortable if they had between 1 and 3 mil. Depending on the website and the calculator you use, you need about 2 mil to make that happen. So I'm not surprised 70% of those with 1 mil and up don't feel wealthy without spending constraints. Plus most people who save more than 1 mil did so with constraints that they will not readily part with despite the number on their statement.

Submitted by phaster on August 17, 2019 - 9:40am.

temeculaguy wrote:
phaster, I guess I agree with the article, that 5 mil might be the tipping point where people do not feel constrained but 1 mil, no way. We all have our own strategies but hypothetically if a person wanted 15k monthly in perpetuity plus 3% inflation for retirement they would not feel wealthy without restraints but they might feel comfortable if they had between 1 and 3 mil. Depending on the website and the calculator you use, you need about 2 mil to make that happen. So I'm not surprised 70% of those with 1 mil and up don't feel wealthy without spending constraints. Plus most people who save more than 1 mil did so with constraints that they will not readily part with despite the number on their statement.

a million in the bank isn't what it use to be,...

Quote:

The Mass Affluent, according to Forrester, are current investors with $100,000 to $1 million in assets (excluding the value of their home). Currently, there over 40 million people across the US that fit into that category and they hold about a third of all retail investment assets.

https://fi.deluxe.com/community-blog/fin...

being wealthy IMHO means being able to say "FU" in ways people can only fantasize about,... for example instead of a kickstarter to appeal to liberal "Mass Affluent" AOC supporters to buy trump tower in NYC and turn it into low income housing for latin american economic refugees,... TRUE WEALTH would be having the ability to pay market rents/prices and turn trump tower in NYC into low income housing for latin american economic refugees

Submitted by scaredyclassic on August 17, 2019 - 10:46am.

If you can be wiped out by assisted living, you're not wealthy. So yeah, a million is not rich.

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