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1 million net is middle class?
I find this astounding that people think they are middle class when they fall in this category. People are going to harp on me for this but I thought i was middle class.
- i make 40k per year
- 200,000 house
- 14,000 car
- savings 2,000
- checking 2,000
- i'm also 31, single
so am I in the poverty lvl? I feel I do quite well and get by real easy this way. I can't imagine someone who has almost 5 times as much as me thinking they are middle class.
I put anyone in 1 million dollar plus club as rich!!!
No 401K or IRA savings or 6 month salary in case I loose my job. I plan to get into this later down the road. I don't know too many people my age that have any of this set up.
4 Answers
- Anonymous1 decade agoFavorite Answer
Thumbs up, Judy.
Yes, 1 million in total assets puts somebody in the middle class bracket for retirement.
You haven't told us what you're doing to allow for the future or allow for unexpected problems. I don't see anything about insurance. You haven't told us your plans for paying off the house. Just thinking about cash flow and what's happening today is how people get to be one house payment away from disaster.
Don't be too smug about your situation. You're doing well no doubt, but don't put off saving for retirement until later. Most people need as much income after they're retired as they do before that however most people don't start saving at all until they're 50. You can't save up 20 years income in 15 years AND still live.
Go find yourself an Edward Jones advisor and get started saving today!
- 1 decade ago
The 1 Million is referring to the amount of savings and investments at retirement age. I am the same age as you, but am married with 1 child. I have a 6 month emergency fund and not a huge 401k nest egg, but I am on track to be well over 1 million before I reach retirement.
If you're not already considering your retirement situation, it's time to start. Time passes very fast, and with a 40k income, you should be able to save. you may want to consider downsizing on your home, or getting a roommate.
- Anonymous1 decade ago
At retirement age.
1 million in savings makes you middle class.
Less can throw you into poverty level so you will have to depend on social security for most of your expenses.
I don't see a 401K or IRA savings in your numbers. I also don't see 6 months salary socked away in case you lose your job.
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- Anonymous1 decade ago
You're poor, you just aren't struggling, but you have potential.
If anything comes up like medical problems or a law suit, you will be in a lot of trouble finacally.
