$1 million is not what it used to be. According to a Fidelity Investments survey, at least 4 out of 10 millionaires in American say they do not feel rich. Survey respondents indicated that they would need to have at least $7.5 million to feel that they were truly rich. Approximately 42% of the over 1,000 millionaires surveyed said that they did not feel wealthy. Individuals surveyed had at least $1 million in investable assets, excluding any real estate or retirement accounts. The average age of respondents was 56 years old with an average of $3.5 million of investable assets.
Most respondents were worried about outliving their assets. The feeling of “rich” did increase with age. However, respondents compared themselves to their peers. Also, they are worried about the long period that they will be in retirement and wanted more assets to fund the lifestyle they are used to. Interestingly, Fidelity noted that the wealthiest 5% of Americans hold more than 55% of the nation’s wealth.
Most of these “rich” are actually in tune with reality. Most Americans have no where near the amount of money they realistically need for retirement without sacrificing their standard of living. This article provides information about how much retirement income you will need.