Make Money From Home

Boomers Think It Takes $1 Million a Year to Be Rich – Are They Right? – GOBankingRates

Money / Financial Planning


Money / Financial Planning

Bavorndej / Getty Images/iStockphoto

Americans tend to be an optimistic bunch when it comes to wealth, with more than half figuring they’ll be rich one day, according to a new survey from RubyHome. But the definitions of “rich” vary wildly depending on how old you are.

See: 20 Best Places To Live on Only a Social Security Check
Find: 27 Ugly Truths About Retirement

The survey of 1,000 adults found that baby boomers believe an annual income of just more than $1 million qualifies someone as rich, while the much younger Gen Z puts the threshold at $394,000 a year.

Life Insurance Offer: The only term life insurance that never requires a medical exam – ages 18-60. Get your fast, free quote now.

One common theme is that the older you are, the more money you think it takes to become rich. Generation X respondents said it takes an annual income of $877,211 to qualify as rich, whereas millennials put the figure at $721,020.

Survey results were included in a report called “Perceptions of Prosperity,” released earlier this month by RubyHome, a Los Angeles-based luxury home builder.

One of the more interesting findings was that 51% of respondents believe they are on track to becoming rich. That doesn’t square with reality, given how much they think you need to earn to become rich vs. how much most Americans earn.

For example, boomers believe it takes a yearly income of $1.02 million to qualify as rich. But the median weekly income in the United States was $1,037 during the first quarter of 2022, according to the U.S. Bureau of Labor Statistics. That comes to about $54,000 per year.

Life Insurance Offer: Instant coverage upon approval. Get a quote in seconds and apply online in minutes. No medical exam ever – ages 18-60.

“Seeing as the median American income is nowhere near six figures, it’d be easy to say that these ideas of attaining wealth are not realistic for the majority of the population,” Ruby Home Founder Tony Mariotti wrote in an email to GOBankingRates. “Additionally, it’s important to take into account that income is just one facet of ‘richness’ our team looked at in this research. We don’t know how other factors such as 401ks or investment portfolios could play a role in their expectations for the future.”

Even the highest earners in the U.S. don’t make anywhere near $1 million a year. To be in the top tax bracket of 37%, individual filers must earn at least $539,900 a year in 2022 and married taxpayers filing jointly must earn a combined $647,850, US News reported. Among the top 5% of …….


Leave a Reply

Your email address will not be published. Required fields are marked *