31% of Millionaires Identify as Being Middle Class

[bjl584]

Survey: 31% of millionaires say they are part of the middle class (cnbc.com)

[disneysteve]

Not at all surprising. $1 million isn't what it used to be. We've discussed that plenty of times. Having $1 million invested means you could retire today and draw maybe $40,000/year from that and not run out of money over the next 30 years. Hardly a rich life on 40K. Heck, I don't think we could survive in our current home on 40K/yr. We'd have to move to some LCOLA. So yes, being a millionaire is definitely middle class in most urban/suburban areas. It's not enough to retire on for most. Even with $3 milion, I'd still say we are solidly middle class. Probably at the higher end of that demographic but far from wealthy. Now once you start talking about $5-10 million and up, that's a different story.

[ua_guy]

The cost of housing, energy, food, and healthcare keep people on their toes. It's pretty shocking what $1 Million doesn't buy in a home in many (read: Job rich, good income) areas of the country. If someone is of working age, they have to weigh living in a LCOL with potential income and many costs which don't change much, like food, energy, and healthcare. Quality of life is a huge factor as well.

[kork13]

My immediate thought is "no duh" ... Accumulated wealth in no way prevents someone from being considered (or actually being, by definition) "middle class". As dumb & meaningless of a measure that it is, "middle class" is defined solely by one's income. In nice round numbers, that means if you've got an annual income between ~$50k - $150k, then you're middle class. The amount that a person has saved & accumulated is immaterial. Further, it's entirely possible (even easy) for a disciplined person with a middle class income to build up $1M+. By simply investing in & maxing a pair of IRAs over the course of a ~30-40yr working career ($12k/yr, 24% - 8% of gross), a couple will almost certainly become millionaires. The more they save, the faster it happens -- as little as ~15 yrs with $50k/yr savings (of course that would have to be a fairly frugal couple near the top end of the "middle class" range).

Point is, this article is yet another nothingburger churned out by the blathering financial news media.

[LivingAlmostLarge]

it really depends on where you live. $1m wouldn't support anywhere I've lived. I don't think a retiree could afford property taxes anywhere I've lived with that income. Not now. Maybe 10+ years ago.