On my Apple News feed, a recent story popped up about the Kansas State Lottery ‘Holiday Millionaire’ game, which gets drawn on the day after New Year’s. Winning that would change most people’s lives, wouldn’t it?
Well … some people don’t think so. As much as the media loves to bedevil wealthy people these days, they also like to poo-poo the idea that having a million dollars is a lot of money. This ARTICLE from Forbes is a perfect example.
Smart people aren’t buying it. A million dollars in net worth is still a VERY big deal for most people. Some millionaire facts:
- Millionaires have 10x the median net worth of the typical household in the USA.
- The median net worth of households at retirement is $202K. Although 80% of Millionaires are still working, they are 5x that wealthy.
- A millionaire is in the top 0.56% of all people in the world in wealth.
- At a 4% withdrawal rate, a million dollars provides for about $40K a year in tax free spending.
- A million dollars puts one in the 91st percentile of American households.
- 80% of millionaires earned their wealth on their own. 20% inherited their wealth.
- 70% of millionaires own their own businesses. That’s 5.8x higher ownership rate than the general public (including people who are self-employed).
A million dollars in the bank may not make you feel like a king, but it certainly buys you a solid middle-class lifestyle in one of the wealthiest countries in the world. Combined with social security income, it should insure a very comfortable retirement.
I’m not a lottery player, but you can definitely see the appeal of finding a ‘Holiday Millionaire’ lottery ticket in your Christmas stocking. In this season of gratitude, it’s worth appreciating how fortunate we are to pursue a lifestyle of FIRE!
Image Credit: Pixabay