Study Finds Only 28 Percent of Millionaires Think They’re Rich
“If you had investments worth a million dollars, would you consider yourself rich? How about $5 million? Well, hold on to your wallet because a new study has found that the majority of millionaires don’t consider themselves rich.
According to a study from investment bank UBS, entitled “What is Wealthy?,” 40 percent of those with $5 million in investable assets said they didn’t feel they were rich. And only 28 percent of investors who had between $1 and $5 million in investable assets viewed themselves as rich.”
My take: That’s because having $1,000,000 (752,000 euros) isn’t actually being rich any more. There’s not a whole lot you can do with that amount of money. Maybe buy a couple of rental properties and boost your income by a few thousand a month. But even if you do, a good chunk of it goes in taxes. If you live in Spain for example the income tax brackets for 2013 are:
- €17.007 – €33.007 30%
- €33.007 – €53.407 40%
- €53.407 – €120.000 47%
- €120.000 – €175,000 49%
- €175.000 – €300.000 51%
- over €300.000 52%
So by the time you’re done, your life isn’t that different from where you were before. And there’s always the risk of loss. When this last crisis hit we saw our ‘net worth’ go down by half a million euros (665k US$)- well, it was probably more like a round million, but saying half a million is much less depressing. I think you can only actually count yourself as rich once you’ve crossed the 10 million euros threshold. Which is something I’ll probably never do unless I play the lottery which I don’t.