- A recent report shows that only a small percentage of billionaires feel that they are wealthy.
- Persistent inflation has taken a toll on the financial security of most Americans, making it difficult for them to feel wealthy.
- What does it take to become rich? “Simply put, it’s more than that,” said Jason Van de Roo, chief customer officer at Edelman Financial Engines.
It is becoming increasingly difficult to feel “abundance.”
Only 8% of billionaires call themselves wealthy these days.
According to a recent Ameriprise Financial study, approximately 60% of investors with investable assets of $1 million or more said they were likely to be upper middle class. investigation Over 3,000 adults.
In that regard, 31% consider themselves distinctly middle class.
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Between persistent inflation, high interest rates, and geopolitical and economic uncertainty, fewer Americans, including billionaires, are confident in their financial health.
“Many people are feeling trapped between rising prices and falling asset prices,” said Kim Maez, a certified financial planner and private wealth advisor at Ameriprise. “It’s a necessary part of the business cycle, but it’s also unpleasant.”
Even doctors, lawyers, and other well-paid professionals, also known as the “ordinary wealthy” who benefit from stable jobs, home ownership, and substantial retirement savings, do not consider themselves to be well off at all. He said he didn’t feel it. Another survey conducted by found that some people said they felt unwell. bloomberg.
A quarter of taxpayers with annual incomes of $175,000 or more, or roughly the top 10% of taxpayers, are either “very poor,” “poor,” or “we’re getting by, but things are tough.” I answered that it was a raft.
Even some people who make more than $500,000 or $1 million said the same thing.
Another report from Edelman Financial Engines found that despite their wealth, only 44% of all billionaires feel “very comfortable.”
What does it take to feel wealthy?
“Simply put, it’s more than that,” Jason Van de Loo, chief customer officer at Edelman Financial Engines, recently told CNBC.
Most people said they needed $1 million in the bank, but wealthy people set the bar much higher. More than half said they needed more than $3 million, and one-third said they needed more than $5 million, according to a survey by Edelman Financial Engines.
When it comes to their pay, Americans say they need: Average income is $233,000 According to another Bankrate study, you can feel financially secure. But to feel wealthy, you need to earn an average of nearly half a million dollars a year, or $483,000.
Of course, rising costs continue to make it difficult to make ends meet. Households are facing skyrocketing child care costs, ballooning car loans, high mortgage rates and record rents as student loan payments resume.
To fill this gap, more and more people are relying on credit cards to cover their daily expenses.
Over the past year, credit card debt has soared to an all-time high, while personal savings rates have declined.
But the deterioration of the American Dream has been in the works for decades, said Mark Hamrick, senior economic analyst at Bankrate.
“Structural or long-term changes are negatively impacting Americans’ ability to manage their personal finances,” he said.
“There was a time in the United States when couples with children could get by by staying home with a single breadwinner, but those days are largely relics of the past.”
Van de Loo added that money continues to be the biggest source of stress for households. “The last few years have only fueled those concerns.”
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