Did you know that 43% of Americans currently retire with less than 10,000.00 dollars in savings. That’s an unfortunate way to begin the last quarter of one’s life. They won’t be traveling much … won’t be capable of financially contributing to their grandkid’s educations … and in fact won’t be doing most of the things they’d dreamed of doing in their golden years.
It’s NOT because they didn’t earn enough money.
Here’s a number to ponder for a moment: 79,000.00 per year.
Not a huge income, especially after you’ve paid your state and federal income taxes but you could raise a family on it if you are willing to be frugal. I can assure you that a significant portion of the lower 43% of Americans retiring with less than 10,000.00 earned more than 79,000.00 at some point during their careers.
According to Phoenix Marketing International a millionaire could be defined as a “person or household that has at least 1,000,000.00 in net liquid assets.” That would generally not include their real estate holdings. These are people that could write a check for 1,000,000.00 dollars and make it clear!
By that definition there are over 660,000 such millionaire households in California. Roughly the top 5%.
Of the millionaire households between 1 and 3 million in net worth: Their median taxable income? 79,000.00 dollars per year! That’s only 18,000.00 over the median income for all households in the state! (note: the median income for all American millionaire households, including the ϋber rich = 131,000)
It’s NOT about how much money we earn. While earnings may well be a significant part of the puzzle there is a much more crucial and compelling difference between the top 5% and the lower 43%.
It has to do with how we think about ourselves and our money concepts.
Where do you want to be in 10 years? Would you like to finance your grandkid’s education, travel the world and/or give to your favorite charities?
If so, there are two simple yet not necessarily easy things you need to understand … and do … to give yourself the best chance to stay in or move into the top 5% while retaining your best odds of avoiding the slide down into the lower 43%.
Those two things in my next blog …
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