3 ms·

there's over 20 million millionaires in the USA, that's like, what, 1 in 20?

QuantumFunnel 6mo ago
A net worth millionaire nowadays is just a person who bought a single family home at least 10 years ago. A million bucks is not what it used to be.
- fl4regun 6mo ago
  I'm sorry a million dollars is still a huge amount of money for normal people, whether it comes from their home or otherwise.
- matwood 6mo ago
  Don't they usually take out the primary residence when doing the calculation? It still doesn't mean someone is completely liquid as I'm guessing many people have their money in tax deferred accounts they can't access until old age.
  - mikestew 6mo ago
    Don't they usually take out the primary residence when doing the calculation? Typically, it would seem that is indeed the case from most calculations I've seen. I mean, are you really worth a million dollars if you have to be homeless to access those dollars?
    - eloisant 6mo ago
      You can get those dollars back and rent your home. Or buy a cheaper one.
rawgabbit 6mo ago
I would wager a lot of "wealth" is in the value of the homes they live in. That is it is illiquid wealth they cannot use. When you factor in medical debt, their liquid wealth is a lot less rosy.
- 9rx 6mo ago
  > That is it is illiquid wealth they cannot use. Housing is actually quite liquid as it is incredibly easy to mortgage. More likely you are overestimating how much housing value is actually there. The majority of American homeowners have already tapped into that liquidity. Owning a house that is worth, say, $1MM on the open market doesn't necessarily mean that your net worth is $1MM.
eloisant 6mo ago
"Millionnaire" is meaningless. There is a huge difference between someone with a net worth of 1M (owns a small home, still needs to work for a living) and a net worth of 30M (can get more than 1M per year of capital revenue without working). And I'm not even talking about billionaires.
hunterpayne 6mo ago
Its 1 in 70

A net worth millionaire nowadays is just a person who bought a single family home at least 10 years ago. A million bucks is not what it used to be.

fl4regun 6mo ago
I'm sorry a million dollars is still a huge amount of money for normal people, whether it comes from their home or otherwise.
matwood 6mo ago
Don't they usually take out the primary residence when doing the calculation? It still doesn't mean someone is completely liquid as I'm guessing many people have their money in tax deferred accounts they can't access until old age.
- mikestew 6mo ago
  Don't they usually take out the primary residence when doing the calculation? Typically, it would seem that is indeed the case from most calculations I've seen. I mean, are you really worth a million dollars if you have to be homeless to access those dollars?
  - eloisant 6mo ago
    You can get those dollars back and rent your home. Or buy a cheaper one.

rawgabbit 6mo ago

I would wager a lot of "wealth" is in the value of the homes they live in. That is it is illiquid wealth they cannot use. When you factor in medical debt, their liquid wealth is a lot less rosy.

9rx 6mo ago
> That is it is illiquid wealth they cannot use. Housing is actually quite liquid as it is incredibly easy to mortgage. More likely you are overestimating how much housing value is actually there. The majority of American homeowners have already tapped into that liquidity. Owning a house that is worth, say, $1MM on the open market doesn't necessarily mean that your net worth is $1MM.

eloisant 6mo ago

"Millionnaire" is meaningless. There is a huge difference between someone with a net worth of 1M (owns a small home, still needs to work for a living) and a net worth of 30M (can get more than 1M per year of capital revenue without working). And I'm not even talking about billionaires.

hunterpayne 6mo ago

Its 1 in 70