Are You Rich?

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RJC
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Are You Rich?

Post by RJC »

It says we are doing OK but we definitely do not feel that way. Is this a good marker of relative wealth?

Are You Rich? This Income-Rank Quiz Might Change How You See Yourself

https://www.nytimes.com/interactive/201 ... -rich.html
Last edited by RJC on Thu Aug 01, 2019 11:56 am, edited 1 time in total.
livesoft
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Re: Are You Rich?

Post by livesoft »

It is income only and we all know that most people don't know how to count income (taxable, AGI, everything, tax-exempt interest, under-the-table, non-monetary compensation like health care, housing, food stamps), so I don't think it is a good marker of relative wealth.
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bligh
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Re: Are You Rich?

Post by bligh »

I guess it depends on how you define rich.

In my humble opinion, high Income often gets confused with being Rich.

High Income is just High Income.

Once you have converted enough of that income to wealth, such that money is no longer a significant factor in what you choose to do with your time ... then you are rich.
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snackdog
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Re: Are You Rich?

Post by snackdog »

If you *rely* on a paycheck, ss, or annuity distributions, you are probably not rich.
Jack FFR1846
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Re: Are You Rich?

Post by Jack FFR1846 »

It's broken. I filled in all the questions but there's no "next" button or any way to get answers. Maybe they require me to subscribe.
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ohai
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Re: Are You Rich?

Post by ohai »

This thing just ranks your income by area. It's crazy to not include net worth in this calculation.
sjt
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Re: Are You Rich?

Post by sjt »

Absolutely - incredibly rich - I've never had to worry about having a roof over my head or when my next meal will be. I've never had to worry about keeping warm. I own a car outright! I'm living better than 99% of people in history.

If that's not rich, what is?
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Rus In Urbe
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Re: Are You Rich?

Post by Rus In Urbe »

This was only an interesting quiz when it came to showing my income relative to various communities...oh, I do love living in LOCOL area. One is almost instantly rich! :D
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GCD
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Re: Are You Rich?

Post by GCD »

No. Way too many variables they haven't included. They need to define their terms too.
lukestuckenhymer
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Re: Are You Rich?

Post by lukestuckenhymer »

Yes, but don't tell anybody.
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Meg77
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Re: Are You Rich?

Post by Meg77 »

I find these sorts of things good for perspective, but I always question the data. Few people live simply off wages or retirement investments. Lower income folks get all kinds of welfare and subsidies and tax credits that wouldn't be counted as income. Business owners can largely control their "income" and also run many of their expenses through their businesses, so they can live quite large on lower monthly personal cash flow. Wealthy people have all kinds of trusts and business interests that redirect or reinvest their income so that it isn't ever technically received by them personally. I work with many of the wealthiest families in my metro, and their "income" is often negative or wildly misleading for all sorts of reasons. Still, they live quite wonderful lives while being effectively bankrupt on paper. And still many other "regular" people have various cash flow that isn't taxed or doesn't occur to them as "income" - dividends reinvested on a brokerage account being a simple example.

From the footnote:
The income data is derived from the American Community Survey, combining responses from the 2017 five-year microdata sample, and adjusted for inflation into 2019 dollars. It includes money earned at work and from owned businesses, as well as income from retirement plans and investments, though not capital gains from the sale of assets and not long-term holdings that provide the bedrock of wealth for the richest American families.
This sounds better than simply using tax return data (which is wildly misleading), but I have no idea how the survey collected the data. If it's based simply on people's recollection or response it is probably off base.
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LiterallyIronic
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Re: Are You Rich?

Post by LiterallyIronic »

The question about "individual" versus "household" income confuses me. My income is the only income in the household, so which one should I choose?
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TomatoTomahto
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Re: Are You Rich?

Post by TomatoTomahto »

LiterallyIronic wrote: Thu Aug 01, 2019 12:16 pm The question about "individual" versus "household" income confuses me. My income is the only income in the household, so which one should I choose?
Yeah. My wife is rich. I’m a pauper.
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unclescrooge
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Re: Are You Rich?

Post by unclescrooge »

bligh wrote: Thu Aug 01, 2019 11:57 am I guess it depends on how you define rich.

In my humble opinion, high Income often gets confused with being Rich.

High Income is just High Income.

Once you have converted enough of that income to wealth, such that money is no longer a significant factor in what you choose to do with your time ... then you are rich.
+1

In my opinion, a person with $100k in passive income is richer than a w2 person with $500k in annual income.
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ResearchMed
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Re: Are You Rich?

Post by ResearchMed »

Jack FFR1846 wrote: Thu Aug 01, 2019 11:59 am It's broken. I filled in all the questions but there's no "next" button or any way to get answers. Maybe they require me to subscribe.
Same thing.

Annoying.

The "default" isn't at all relevant: wrong metro area, wrong income. Big deal.

RM
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Greenman72
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Re: Are You Rich?

Post by Greenman72 »

sjt wrote: Thu Aug 01, 2019 12:03 pm Absolutely - incredibly rich - I've never had to worry about having a roof over my head or when my next meal will be. I've never had to worry about keeping warm. I own a car outright! I'm living better than 99% of people in history.

If that's not rich, what is?
+100000

I have a job that I love.
I have a lot of friends, and a couple of really close friends.
I have a good marriage, and two good kids with whom I have a good relationship.
I also have a good relationship with my mom, my siblings, and my in-laws.
I have a good church that supports me in good times and in bad.
I'm able to give back--back to the accounting/personal finance community, back to my local community, and back to God.
I've owned my car for 15 years, and it's only been out of commission twice. After 220k miles, it's still safe and reliable. (and paid for)
I am in good health. I have no major health problems. Neither does my wife or kids.
I have a good reputation in the community for my tax & financial planning acumen. I have the respect of the local CPA community.
I have good work/life balance. I don't spend 60+ hours a week at work (normally).

I would say that I'm very, very rich indeed.
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iceport
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Re: Are You Rich?

Post by iceport »

ResearchMed wrote: Thu Aug 01, 2019 12:21 pm
Jack FFR1846 wrote: Thu Aug 01, 2019 11:59 am It's broken. I filled in all the questions but there's no "next" button or any way to get answers. Maybe they require me to subscribe.
Same thing.

Annoying.

The "default" isn't at all relevant: wrong metro area, wrong income. Big deal.

RM
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firebirdparts
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Re: Are You Rich?

Post by firebirdparts »

I was surprised at the simplicity of all that, but this caught my eye:
More than a third of respondents in the 90th percentile described their income as “average” compared to Americans in general
Maybe they just lied. It's pretty impolite to say "yeah, I'm rich". Present company excepted, of course. I hope everybody posted here today feels rich. Times sure are good.
Last edited by firebirdparts on Thu Aug 01, 2019 12:43 pm, edited 1 time in total.
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miamivice
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Re: Are You Rich?

Post by miamivice »

I don't know.

We shop at Wal-Mart extensively. I nag my wife about cutting costs on a weekly basis. I have to closely monitor our bank accounts to make sure that outflow doesn't exceed inflow.

Yet, we have a net worth around $2.1 million at age 40.

You tell me...
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firebirdparts
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Re: Are You Rich?

Post by firebirdparts »

I drove a 40 year old car to work today.
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Texanbybirth
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Re: Are You Rich?

Post by Texanbybirth »

sjt wrote: Thu Aug 01, 2019 12:03 pm Absolutely - incredibly rich - I've never had to worry about having a roof over my head or when my next meal will be. I've never had to worry about keeping warm. I own a car outright! I'm living better than 99% of people in history.

If that's not rich, what is?
+1

And your signature line is a good reminder, too.
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TomatoTomahto
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Re: Are You Rich?

Post by TomatoTomahto »

miamivice wrote: Thu Aug 01, 2019 12:42 pm I don't know.
We shop at Wal-Mart extensively. I nag my wife about cutting costs on a weekly basis. I have to closely monitor our bank accounts to make sure that outflow doesn't exceed inflow.
Yet, we have a net worth around $2.1 million at age 40.
You tell me...
I would say you’re rich, but if you don’t stop nagging your wife, a change in marital status could make you poor. :D
Only half kidding.
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finfire
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Re: Are You Rich?

Post by finfire »

Yes. I have my health, my family and a roof over my head.
fposte
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Re: Are You Rich?

Post by fposte »

sjt wrote: Thu Aug 01, 2019 12:03 pm Absolutely - incredibly rich - I've never had to worry about having a roof over my head or when my next meal will be. I've never had to worry about keeping warm. I own a car outright! I'm living better than 99% of people in history.

If that's not rich, what is?
Yup. We do a lot of comparing up around here. This is one where comparing down can be really illuminating.
Momus
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Re: Are You Rich?

Post by Momus »

No. Everyone and their moms who own a house in metro CA are millionaires.
milktoast
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Re: Are You Rich?

Post by milktoast »

I was explaining the difference between rich and wealthy to my teenage daughter the other day.

We are rich. Anything we need, we can have. Most of what we want, we can have. But only as long as I stay healthy and employed.

Once being healthy and employed is no longer required to maintain your standard of living, then you are wealthy.
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Bluce
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Re: Are You Rich?

Post by Bluce »

Using income as a measure of wealth is irrelevant, as already mentioned above. So is net worth by itself.

The best way to measure if one is "rich" is to compare one's net worth against the average of the past 5-10 years' income.

I forgot what the number might be, but around 20-25 times as I recall.

If you make $250k per year, but your net worth is only $2M, you are not rich, or not wealthy.

But if you make $40k per year, and have a net worth of $1M, you are "rich."
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DesertDiva
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Re: Are You Rich?

Post by DesertDiva »

ohai wrote: Thu Aug 01, 2019 12:02 pm This thing just ranks your income by area. It's crazy to not include net worth in this calculation.
+1 Right. It's not just what you make, it's also what you keep.
Starfish
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Re: Are You Rich?

Post by Starfish »

Money are useless and don't make you rich. The only fortune in ones life is time and health. I have to work and sell my only fortune for money, so I am not rich at all. Millions and hundreds of thousands of income are irrelevant.
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marti038
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Re: Are You Rich?

Post by marti038 »

sjt wrote: Thu Aug 01, 2019 12:03 pm Absolutely - incredibly rich - I've never had to worry about having a roof over my head or when my next meal will be. I've never had to worry about keeping warm. I own a car outright! I'm living better than 99% of people in history.

If that's not rich, what is?
100% agree with this line of thinking. We're all typing our responses on machines that we spent hundreds of dollars for on a forum that can basically be defined as a place for people to talk about what to do with all their money.

We're all filthy rich. I wonder more about what we'll do about it.
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Re: Are You Rich?

Post by oldcomputerguy »

Topic locked for moderator review. -- mod oldcomputerguy
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Re: Are You Rich?

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Upon further review, this thread will remain locked (rich people). See: Non-actionable (Trolling) Topics
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